Pot of gold: provinces rake in most of Canada’s cannabis taxes

By United States Fish and Wildlife Service - [1], specifically CASA1_LF.jpg. (If the links expire, the photo can be found by searching for "cannabis" at the GIMP photo archive.)The original file with a watermark is at http://www.fws.gov/midwest/sherburne/CASA1.htm, Public Domain, https://commons.wikimedia.org/w/index.php?curid=21916

OTTAWA — A newly tabled report shows the federal and provincial governments have collected more than $5.4 billion in cannabis tax revenue since legalization in October 2018.

Figures submitted to the House of Commons list $1.2 billion going to the federal government and $4.2 billion to provinces and territories as of Aug. 31, 2025. The data was provided in response to a written question from Conservative MP Luc Berthold, who asked on Oct. 7. The answer was tabled on Nov. 24.

The Canada Revenue Agency collects both federal and provincial excise duties under Coordinated Cannabis Taxation Agreements. Provinces and territories receive 75 per cent of every excise dollar collected from cannabis entering their wholesale systems.

Ontario received the largest share at $1.5 billion, reflecting its population of about 16.3 million. Alberta followed with about $1.1 billion. Quebec collected about $501.3 million, while British Columbia took in $478.8 million. Manitoba is the only province not participating in the federal taxation framework.

The CRA’s financial statements for the 2024 to 2025 fiscal year have not yet been released. Cannabis excise revenues for 2025 to 2026 cover the period from April 1 to Aug. 31 and are considered interim.

The federal report also outlines nearly $21.6 million spent by Health Canada on cannabis education and advertising campaigns. About $13.2 million went toward two major efforts launched in 2018 and 2019, including the national Your Cannabis Questions, Answered campaign and the Pursue Your Passion experiential tour.

Health Canada says 26 prevention and public education projects have received a total of $29,597,569 in contributions since legalization.