How Much Tobacco Tax Do Provinces Collect?

Last reviewed: October 27, 2026Next review due: April 2027

Key takeaways

Provincial tobacco tax revenue is falling where official series are available. Ontario's fell from $864 million in 2022-23 to $693 million in 2024-25, and Saskatchewan's from $259.7 million in 2016-17 to $122.3 million in 2024-25. British Columbia, Manitoba and Nova Scotia budget documents show $450 million, $100 million and $107.8 million for 2024-25 forecasts.

Provincial tobacco tax revenue has been shrinking. Where a government publishes a clean series, the line has dropped every year: Ontario from $864 million in 2022-23 to $693 million in 2024-25, and Saskatchewan from $259.7 million in 2016-17 to $122.3 million in 2024-25. Every figure below comes from a provincial budget, fiscal plan or revenue page, as of 27 October 2026. Some are actuals and some are forecasts; the table says which.

How much tobacco tax revenue does each province collect?

ProvinceFiscal yearAmountBasis
Ontario2024-25$693 millionActual
British Columbia2024/25$450 millionUpdated forecast (Budget 2025)
Saskatchewan2024-25$122,339,417Actual
Nova Scotia2024-25$107.8 millionForecast (2025-26 Estimates)
Manitoba2024/25$100 millionForecast (Budget 2025)

Figures are not directly comparable. They mix actuals with forecasts, and provinces count different taxes in the line. Do not rank them per person or per cigarette from this table alone. For the rates behind these revenues see tobacco tax rates in Canada.

What has happened to revenue over time?

Ontario (Table 3.7, 2025 Ontario Economic Outlook and Fiscal Review):

YearTobacco Tax revenue
2022-23$864 million
2023-24$813 million
2024-25$693 million
2025-26 (current outlook)$646 million

That is a 19.8% fall between 2022-23 and 2024-25.

Saskatchewan publishes the longest series:

YearTobacco Tax revenue
2016-17$259,705,539
2017-18$254,341,003
2018-19$236,447,080
2019-20$206,794,187
2020-21$204,254,842
2021-22$180,406,775
2022-23$164,263,049
2023-24$144,963,350
2024-25$122,339,417
2025-26$113,139,392
2026-27 (budget)$112,100,000

From 2016-17 to 2024-25 the amount more than halved, a decline of 52.9%.

What do the other budgets show?

  • British Columbia: the Budget and Fiscal Plan 2025/26 to 2027/28 shows tobacco tax revenue of $450 million for the 2024/25 updated forecast, $450 million for the 2025/26 budget estimate and $450 million for each plan year to 2027/28.
  • Manitoba: Budget 2025 lists Tobacco Tax of $100 million in the 2024/25 budget and forecast and $98 million budgeted for 2025/26.
  • Nova Scotia: the 2025-26 Estimates show $114.1 million estimated for 2024-25, a forecast of $107.8 million (about 5.5% lower) and $93.3 million estimated for 2025-26.
  • Quebec: its Budget 2024-2025 did not give a revenue line we could read. It did announce two increases of $2 per carton of 200 cigarettes (from $37.80 to $39.80 on 13 March 2024 and to $41.80 on 6 January 2025), expected to raise government revenue by $300.0 million over five years.

We could not retrieve usable official figures for Alberta, New Brunswick, Newfoundland and Labrador, Prince Edward Island or the territories, so they are not shown.

Why is the revenue falling?

The budget tables report totals, not causes, so this page does not attribute the decline to a single factor. One verifiable piece of context is that smoking has been falling: Health Canada reports any tobacco use fell from 29% of Canadians in 2001 to 13% in 2024. How price and illicit supply interact with revenue is explained in the contraband tobacco overview, the price side in cigarette prices by province, and Quebec’s lower rate in why Quebec cigarettes are cheaper.

What is not included?

Only tobacco tax lines are shown. Vaping taxes are separate; see vape tax in Canada. Federal excise duty on tobacco goes to Ottawa and is not part of provincial totals, and the figures here do not include any receipts from tobacco litigation settlements.

Figures are estimates for planning. Actual prices and taxes vary by seller and date. Read the full disclaimer.

Frequently asked questions

How much tobacco tax revenue does Ontario collect?

Ontario reports Tobacco Tax revenue of $864 million in 2022-23, $813 million in 2023-24 and $693 million in 2024-25 (actuals), with a current outlook of $646 million for 2025-26, according to its 2025 Fall Economic Statement.

Is provincial tobacco tax revenue going up or down?

Down where a series is published. Ontario's and Saskatchewan's actuals have fallen year after year, and Manitoba and Nova Scotia budget lower amounts for 2025-26 than for 2024-25. Quebec's budget expects extra revenue from its 2024 and 2025 rate increases.

Do these figures include tobacco settlement money?

No. The figures here are the tobacco tax lines only, and they do not include receipts from tobacco litigation settlements.

Sources

  1. Delivering Results: Advancing Canada's Tobacco Strategy — Health Canada. Accessed October 27, 2026.
  2. 2025 Ontario Economic Outlook and Fiscal Review, Chapter 3: Ontario's Fiscal Plan and Outlook — Government of Ontario. Accessed October 27, 2026.
  3. Tax Revenue Figures — Government of Saskatchewan. Accessed October 27, 2026.
  4. Budget and Fiscal Plan 2025/26 to 2027/28 — Government of British Columbia. Accessed October 27, 2026.
  5. Budget 2025: Building One Manitoba — Government of Manitoba. Accessed October 27, 2026.
  6. Budget 2025-26: Estimates and Supplementary Detail — Government of Nova Scotia. Accessed October 27, 2026.
  7. Budget 2024-2025, Plan budgétaire — Ministère des Finances du Québec. Accessed October 27, 2026.
Disclaimer: the information on this site is for general reference only. It is not medical, legal or financial advice. Laws, rates and programs change, so check the official source before you rely on any detail.