Canada’s cannabis cash crop: billions in tax, but where’s the prevention spending?
Since the historic move to legalize recreational cannabis in October 2018, Canada has quietly harvested more than $5.4 billion in tax revenue. But while the money keeps rolling in, questions are rising over where it’s going — especially when it comes to public education and health.
Ottawa and the provinces have split the pot, with the federal government collecting $1.2 billion, and $4.2 billionfilling provincial coffers. Ontario led the pack, banking $1.5 billion, while Alberta, with just a third of Ontario’s population, pulled in an impressive $1 billion+ — the most per person in the country.
On a per capita basis, Albertans paid about $210 each in cannabis taxes — nearly four times the $55.31 paid in Quebec, which came last on the list.
Here’s how other provinces and territories measured up:
- Northwest Territories: $135.80
- Yukon: $126.35
- Saskatchewan: $121.55
- Newfoundland and Labrador: $113.65
The data, recently revealed in response to a House of Commons query from Quebec MP Luc Berthold, offers a rare glimpse into both the windfall and the underwhelming follow-up efforts to educate Canadians on cannabis use.
Falling short on education and health
Back in 2018, Ottawa projected $690 million in federal cannabis tax revenue over five years. It’s fallen short, bringing in about $567 million by the end of the 2022–2023 fiscal year.
But the bigger gap lies in cannabis education and prevention spending.
Health Canada had budgeted $83 million over five years. So far, it has spent just $21.6 million. Shockingly, over half of that — $13 million — was spent in the first year alone.
At the height of the pandemic (2020–2022), Health Canada’s cannabis education spending plummeted to under $500,000 annually, before rebounding slightly to $2.3 million in 2024–2025.
Separately, the federal government allocated $29.6 million to support 26 cannabis-related education and prevention initiatives across the country.
Missing data from Manitoba
Manitoba’s cannabis tax figures were notably absent. The province does not participate in the federal taxation system for cannabis and thus was excluded from the report.
Also, data from 2025 remains incomplete, covering only the months from April to August.
Read more about global cannabis developments
Interested in how other countries are navigating cannabis policy? Check out our latest global coverage:
- Israel’s Medical Cannabis Market from 2011 to 2025: Key Trends and Projections
- Thailand Tightens Cannabis Laws Amid Tourist Smuggling Concerns
- Denmark to Fully Legalize Medical Cannabis in 2026
- Rwanda Advances Medical Cannabis Facility Project
- Brazil Launches Public Consultation on Medical Cannabis Regulation
FAQ: Cannabis Taxation and Education in Canada
What is per capita cannabis tax revenue?
Per capita revenue refers to the average amount of cannabis tax collected per person in a specific region. In Alberta, for example, this amounts to about $210 per resident.
Why doesn’t Manitoba appear in the federal cannabis tax data?
Manitoba opted out of the federal cannabis taxation framework, so its data isn’t included in national totals.
How much has Canada spent on cannabis education?
Health Canada has spent approximately $21.6 million since 2018 — far below the originally projected $83 million.
What is the federal-provincial cannabis tax split?
From total revenues of $5.4 billion, the federal government collected $1.2 billion, while provinces received the remaining $4.2 billion.
