Alberta tobacco tax revenue falls to $364 million, less than half its 2019-20 peak

Alberta's tobacco tax revenue dropped to $364 million in 2025-26, less than half the $797 million collected in 2019-20, as the estimated volume of cigarettes sold in the province fell to its lowest point in more than a decade of records, according to figures published Oct. 23 by Alberta Treasury Board and Finance's Tax and Revenue Administration.

Cigarettes accounted for $336.6 million of the 2025-26 total, with an estimated 1.1 billion cigarettes sold — down from 1.28 billion the year before and from a high of 2.94 billion in 2019-20. Cigar revenue came in at $19.8 million on 20.2 million units, while loose tobacco brought in $7.6 million.

The decline has been consistent across every category tracked in the annual data release. Total tobacco tax revenue peaked at $972.9 million in 2015-16 and has fallen in every fiscal year since, dropping by more than $608 million over the past decade. Loose tobacco volumes have seen the sharpest proportional decline, falling from 111.9 million grams in 2011-12 to 18.5 million grams in 2025-26.

Tax and Revenue Administration cautioned that the volume figures are computed estimates based on net revenue received, not direct sales counts. The agency said the data can be affected by prior-period adjustments, refunds for product loss or contamination, audit assessments and timing differences, and that unmarked product subsequently exported may be included in the totals.

The agency also noted the figures are compiled monthly based on the previous month's sales activity, meaning they will not align with tobacco tax revenue reported in the province's annual report.

Updated figures are available at open.alberta.ca. Questions can be directed to Tax and Revenue Administration at TRA.Revenue@gov.ab.ca or 780-427-3044.