Canada reaches $5.4 billion in cannabis tax revenue since 2018 legalization

November 25, 2025

RED FM News Desk

Federal and provincial governments in Canada have collectively generated over $5.4 billion in tax revenue from cannabis since the drug was legalized for recreational use in October 2018.

According to the data, which was provided in response to a question from Conservative MP Luc Berthold of Quebec the federal government collected $1.2 billion. The remaining $4.2 billion was distributed among provincial treasuries.

Ontario received the largest share among the provinces, taking in $1.5 billion. Alberta ranked second, having earned over $1 billion despite having less than one-third of Ontario’s population.

The data also showed that Health Canada has spent approximately $21.6 million on education and prevention programs since legalization. Of this total, $13 million was spent in the 2018-19 fiscal year alone.

It is important to note that this revenue data does not include tax revenue from Manitoba, as it is the only province that does not participate in the federally administered cannabis tax framework.