Canada Rakes in Over $5.4B from Cannabis Taxes Since 2018

BREAKING: Canada has generated a staggering $5.4 billion in cannabis tax revenue since the legalization of recreational use in October 2018. This significant figure reflects the booming market and the financial windfall for both federal and provincial governments.

According to official reports, the federal government alone has collected $1.2 billion, with provinces accruing the remaining $4.2 billion. Notably, Ontario leads the provinces with an impressive $1.5 billion in revenue. Alberta follows closely, bringing in just over $1 billion despite having less than a third of Ontario’s population.

Alberta’s success is underscored by its per capita revenue, which stands at approximately $210 per person—surpassing all provinces. The Northwest Territories ranks second at $135.80 per person, followed by the Yukon at $126.35, Saskatchewan at $121.55, and Newfoundland and Labrador at $113.65. In stark contrast, Quebec reported the lowest per capita revenue at just $55.31 since legalization.

These figures were revealed in response to a query from Luc Berthold, a Conservative MP from Quebec, who sought detailed information on cannabis tax revenue and spending on prevention programs.

Despite the significant revenue, the federal tax income has fallen short of initial projections. The 2018-19 budget anticipated $690 million over the first five years, yet Ottawa managed to collect only about $567 million by the end of the 2022-23 fiscal year. Furthermore, spending on cannabis education has not met expectations, with Health Canada reporting $21.6 million invested in education and prevention programs since legalization—far below the projected $83 million.

The impact of COVID-19 is evident, as Health Canada allocated less than $500,000 to education and prevention during the peak pandemic years of 2020-21 and 2021-22. However, spending has increased since then, reaching $2.3 million for the 2024-25 fiscal year.

As the cannabis market continues to evolve, stakeholders are watching closely to see how revenue trends will change. With parts of the tax revenue data still incomplete for 2025, covering only April 1 to August 31, the full scope of the market’s impact remains to be seen.

The financial implications of these figures are crucial, not only for government budgets but also for communities impacted by cannabis legislation. The information shared today sheds light on the ongoing conversation around cannabis regulation, education, and public health.

Stay tuned for further updates as more details become available on this rapidly developing story.