However this all depends on what provinces decide the price of cannabis should be in Canada. Currently in the black market, cannabis sells for between $185 and $215 an ounce in Canada, so you would assume levels will be set slightly higher than that so as not to encourage a massive increase in cannabis use but not so high that it allows a black market to continue to thrive. The proposed federal tax rate for recreational cannabis is $1 per gram (so $28.35 per ounce) or 10% of the retail price, whichever is higher. That would suggest that we expect the price of recreational cannabis in Canada will be around $275 per ounce. The plan is to split the tax revenues 50/50 between federal and provincial governments, although this has not gone down well with Alberta and Quebec who think they should receive a greater share of tax revenues.