Combined Totals by Year (All States)

Year	Combined Totals by Year (All States)
2014	$68,503,980
2015	$264,211,871
2016	$530,521,110
2017	$736,534,982
2018	$1,308,693,928
2019	$1,749,459,667
2020	$2,856,307,217
2021	$3,934,089,074
2022	$3,816,898,917
2023	$4,185,783,924
2024	$4,420,797,233
2025	$4,570,126,266
Totals	$28,441,928,169

---

Colorado

Colorado (pop. 6 million) | Tax rate: 15% wholesale, 15% special retail

Colorado voters approved an initiative to regulate cannabis for adults in November 2012, and on January 1, 2014, the state became the first with legal adult-use sales. Colorado already had a developed medical cannabis regulatory system, and many businesses were able to transition to having both a medical and an adult-use counter.^[1]

Colorado has generated over $2.8 billion in adult-use cannabis taxes since 2014. Every year since 2017 — the fourth year of sales — Colorado’s adult-use cannabis tax revenue exceeded $220 million.^[2] More than $1.5 billion of the revenue has been dedicated to Colorado’s public school system.^[3]

The below chart shows the year-by-year totals for Colorado’s cannabis tax revenue. After seven years of rapid growth in cannabis sales and related tax revenue, Colorado has experienced reductions in adult-use cannabis tax revenue since 2021. Cannabis tax revenue peaked at $396 million in 2021. In 2025, the state generated $220 million in cannabis tax revenue.^[4] Contributing factors in the recent decline include lower prices^[5] and additional states legalizing, resulting in fewer out-of-state consumers. In addition, many states saw a short-term boost in cannabis sales and taxes in 2020-2021, during COVID shut downs.^[6]

In fiscal year (FY) 2025, Colorado collected $242.9 net adult-use taxes — more than 3.5 times the net amount of alcohol taxes and fees it collected in FY 2025.^[7]

The figures do not count local sales tax revenues, which have been significant. The city of Denver, for example, applies its standard local sales tax of 4.81% and an additional 5.5% sales tax on adult-use cannabis, and collected an estimated $36.8 million in cannabis tax revenue in 2025.^[8]

Year	State Sales Tax Revenue from Adult-Use Cannabis[9]
2014	$46,104,922
2015	$104,759,961
2016	$167,157,150
2017	$220,688,951
2018	$243,466,892
2019	$279,155,047
2020	$362,027,103
2021	$396,157,005
2022	$305,034,034
2023	$256,756,467
2024	$237,436,232
2025	$220,884,560
Totals	$2,839,628,324

---

Washington

Washington (pop. 8 million) | Tax rate: 37% at retail; 6.5% sales tax

Washington’s voters also approved an adult-use measure in November 2012, and its first stores opened in July 2014. At the time, the state had an unregulated, arguably illegal, medical cannabis dispensary system, which was separate from the regulated adult-use program. This resulted in a slower ramp-up than in Colorado. Until July 2015, taxes were extremely high — 25% at three points of transfer — making it hard to compete with illegal sales. In 2015, the legislature changed the excise tax rate to 37% and created a medical endorsement program to which adult-use stores could apply to join. Washington’s cannabis taxes are among the highest in the nation.^[10] Since sales began, the state has generated over $5.1 billion in cannabis excise and sales taxes. From 2020-2024, Washington brought in more than half a billion dollars in cannabis tax revenue. The market experienced a decline in 2025 from previous years, due to the oversupply of cannabis, resulting in the cannabis prices doing down.^[11] Over half of the revenue is used for healthcare for low-income children.^[12]

As was the case with Colorado, Washington saw steady annual growth in cannabis tax revenue until 2021. Tax revenue increased again in 2023, but then experienced a modest decrease in revenue for the second half of 2024 — for good reason. Starting on June 6, 2024, Washington began exempting medical cannabis patients from cannabis excise taxes.

The below chart shows annual excise and sales tax revenue in Washington state, by year. The figures do not include local taxes, which totaled an estimated $338.9 million from July 2014 through December 2025.^[13]

Year	Estimated State Sales Tax Revenue from Adult-Use Cannabis[14]
2014	$22,399,058
2015	$159,451,910
2016	$302,976,832
2017	$397,358,420
2018	$437,169,560
2019	$477,310,790
2020	$614,417,720
2021	$630,863,570
2022	$529,443,420
2023	$532,516,060
2024	$516,558,150
2025	$495,814,160
Totals	$5,116,279,650

---

Oregon

Oregon (pop. 4.2 million) | Tax rate: 17% at retail

Oregon voters approved an initiative regulating cannabis for adult use in November 2014, and the state’s first adult-use stores opened in October 2016. In addition, the legislature allowed medical cannabis dispensaries to sell a limited amount of cannabis (five grams) to adults from October 2015 until December 31, 2016. Those sales were taxed at 25% beginning January 4, 2016. The state’s medical patients (which has dropped dramatically since legalization to 0.3% of Oregon’s population)^[15] can buy cannabis tax-free from adult-use stores.In 2021, voters enacted Measure 110 and directed the bulk of the revenue to a new Drug Addiction Treatment and Recovery Services Fund.^[16]

Oregon has generated a total of $1.2 billion in adult-use cannabis revenue through 2025.

The below annual tax revenues do not include the 3% sales tax some localities impose. From February 2017 through 2025, local taxes have generated $188 million.^[17]

Year	State Sales Tax Revenue from Adult-Use Cannabis[18]
2016	$60,154,432
2017	$68,646,246
2018	$94,226,985
2019	$115,915,277
2020	$158,336,274
2021	$177,773,944
2022	$150,316,424
2023	$148,133,667
2024	$153,795,374
2025	$143,680,856
Totals	$1,270,979,479

---

Alaska

Alaska (pop. 737,000) | Tax rate at wholesale: $50/ounce for most flower; $25/ounce for immature/abnormal buds; $15/ounce for trim; clones: flat rate of $1 Alaska voters approved an initiative to regulate cannabis for adult use in November 2014, and the first adult-use stores opened in October 2016.A number of factors initially resulted in slower revenue generation than in some other states. The state’s medical cannabis program did not have dispensaries, meaning there were no cannabis businesses that could transition to adult-use cultivators and retailers. As a result of a limited supply, many stores closed for large stretches of January 2017 or operated with reduced hours.^[19] Since sales began, Alaska has collected more than $208 million in cannabis excise tax revenue. Half of the revenue is now invested in the Recidivism Reduction Fund, which supports reentry programs for currently and formerly incarcerated individuals.^[20] Since 2018, another 25% has been directed to the Marijuana Education and Treatment Fund.^[21] 

Tax revenue steadily climbed for the first five years, and peaked at $28.9 million in 2021. Since 2021, the state has seen a relatively modest decrease in cannabis tax revenue each year. Each year since 2020, annual cannabis tax revenue has still exceeded $25 million.

Alaska has one of the highest tax rates on cannabis. A September 2022 report by the Urban-Brookings Tax Policy Center found Alaska’s tax rate would be the highest in the nation if average cannabis prices were $100/ounce.^[22] However, both Washington and Alaska’s prices are over that threshold, and Washington appears to still have a higher effective tax rate.^[23]

The below figures show Alaska’s year-by-year and total cannabis excise tax revenue. They do not include additional tax some localities impose.

Year	State Sales Tax Revenue from Adult-Use Cannabis[24]
2016	$232,696
2017	$6,075,069
2018	$15,697,268
2019	$21,672,822
2020	$27,205,435
2021	$28,900,231
2022	$28,650,355
2023	$28,097,114
2024	$26,399,163
2025	$25,354,627
Totals	$208,284,780

---

Nevada

Nevada (pop. 3.2 million) | Tax rate: 15% wholesale, 10% special retail, 6.85% standard sales tax

Nevada voters approved an initiative regulating cannabis for adult use in November 2016. The first adult-use stores were expected to be licensed in 2018, but the legislature and governor allowed medical cannabis dispensaries to sell to adults beginning on July 1, 2017. Nevada’s total cannabis tax revenue crossed the $1 billion threshold in 2023, six and a half years into legal sales. Through 2025, the total is more than $1.4 billion.

Nevada law allocates its entire 10% state retail excise tax to the State Education Fund. Meanwhile, each year, $5 million of the wholesale excise tax is distributed to local governments. After covering regulatory costs, the balance of all revenue from wholesale taxes, fees, and fines is also distributed to the State Education Fund. In fiscal year 2025, $95.8 million in cannabis revenue was directed to the state’s K-12 education budget from sales generated by the adult-use cannabis market.^[25]

The below chart includes annual totals for Nevada’s cannabis excise and sales taxes. The figures do not count local sales taxes.

Year	State Sales Tax Revenue from Adult-Use Cannabis[26]
2017	$43,766,296
2018	$120,111,184
2019	$149,696,435.51
2020	$172,493,138.11
2021	$225,714,198.97
2022	$196,952,338.14
2023	$178,135,259
2024	$170,977,715
2025	$157,913,273
Totals	$1,415,759,837

---

California

California (pop. 39.3 million) | Tax rate: 15% excise tax currently, increased to 19% from July 1, 2025 to September 22, 2025; 7.25% standard sales tax

California voters approved an initiative regulating cannabis for adults’ use in November 2016. The state’s first adult-use stores began to open in January 2018, but the transition from the state’s unregulated, grey market of medical cannabis providers to a licensed and regulated system has been more gradual and less complete than anticipated. The state’s long history of illicit cannabis production, favorable growing conditions, and continued demand from prohibition states have also meant illegal cultivation remains prevalent. In addition, many localities continue to prohibit cannabis stores, leaving swaths of prohibition that are still served by the untaxed illicit market.

California’s initial legalization law included a $9.25 per ounce tax on flowers, in addition to the current taxes, but that was removed in July 2022. Lawmakers were concerned the legal market was having difficulties competing against unregulated, untaxed sales. The bill also required an automatic increase in the retail excise tax starting in 2025 to offset cultivation taxes that were removed.^[27] From July 1, 2025, to September 22, 2025, the automatic tax increase changed the cannabis excise tax from 15% to 19%. The high taxes and regulatory burdens made legal cannabis more costly than illicit cannabis. On September 22, 2025, Governor Newsom signed AB 564 into law, which reverted the 19% tax hike back to 15% until June 30, 2028.^{[28] [29]} Several cities and counties in California have reduced or eliminated local cannabis taxes.^[30]

California has brought in over $7.7 billion in state cannabis tax revenue since legal sales began. Every year since 2020, the state has generated over $1 billion in excise and sales taxes on adult-use cannabis.

The voter-approved legalization law directs a significant portion of its cannabis tax revenue to local programs that benefit people adversely impacted by punitive drug laws. By April 2021, more than $100 million had already been distributed to community groups.^[31] In 2025, $48 million was dispersed through community reinvestment grants.^[32] The state also invests large chunks of cannabis revenue into childcare services and environmental programs. The below figures do not include local sales and special taxes established by municipalities across the state.

Year	State Sales Tax Revenue from Adult-Use Cannabis[33]
2018	$397,343,905
2019	$638,347,979
2020	$1,110,476,931
2021	$1,361,747,183
2022	$1,115,967,422
2023	$1,082,452,368
2024	$1,009,294,380
2025	$1,049,136,426
Totals	$7,764,766,594

---

Massachusetts

Massachusetts (pop. 7.1 million) | Tax rate: 10.75% excise tax on sales; 6.25% standard sales tax

Massachusetts voters approved an initiative regulating cannabis for adults’ use in November 2016. The first adult-use stores opened in November 2018.

Massachusetts has seen an increase in cannabis tax revenue every year since sales began. In 2025, Massachusetts brought in over $290 million in cannabis tax revenue. In early 2024, Massachusetts’ total adult-use cannabis tax revenue crossed the $1 billion threshold. In early 2026, the total adult-use cannabis tax collected surpassed $1.5 billion since legal sales started in 2018.^[34]

With the adult-use cannabis tax revenue collected so far, the state has invested millions of dollars into youth programs, public awareness campaigns, and a recently introduced Social Equity Trust Fund, which has distributed $28.8 million to hundreds of businesses across the state in Massachusetts.^[35] Massachusetts allows cities and towns to impose an additional sales tax up to 3%. The figures below do not include those totals. In fiscal year 2025 alone, local cannabis taxes provided an additional $39.8 million in revenue to cities and towns in Massachusetts.^[36]

Year	State Sales Tax Revenue from Adult-Use Cannabis[37]
2018	$678,134
2019	$66,243,027
2020	$111,963,388
2021	$227,474,843
2022	$250,710,415
2023	$263,488,752
2024	$282,963,631
2025	$290,599,658
Totals	$1,494,121,848

---

Michigan

Michigan (pop. 10.1 million) | Tax rate: 10% excise tax on sales; 6% standard sales tax; 24% wholesale excise tax since Jan. 1, 2026

Michigan voters approved an initiative to legalize and regulate cannabis for adults’ use in November 2018. Sales began in December 2019.

In 2025, Michigan surpassed $2 billion collected in adult-use cannabis tax revenues. For the second year in a row, Michigan’s annual adult-use cannabis tax revenue topped $500 million in 2025. In the first five years of legal sales, Michigan saw steady annual increases in tax revenue. Tax revenue decreased somewhat in 2025, as prices dropped and sales began in one of its border states — Ohio. ^[38]

While localities can opt out of brick-and-mortar stores, delivery is allowed statewide. This provides for legal, regulated access across the state and reduces the illicit market.

Revenue is distributed as follows:

• 15% to municipalities and Indian Tribes that host one or more retail stores or microbusinesses
• 15% to counties that host one or more retail stores or microbusinesses
• 35% to the School Aid Fund for K-12 education
• 35% to the Michigan Transportation Fund for roads^[39]

In fiscal year 2025, over $109 million in cannabis tax revenue went to the School Aid Fund for K-12 education, and another $109 million to the Michigan Transportation Fund.^[40] For each store or microbusiness they hosted, municipalities, counties, and tribes received $54,017.10. The total distribution to localities, counties, and tribes in FY 2025 was over $93.7 million.^[41]

In late 2025, Michigan lawmakers passed a 24% wholesale tax on cannabis that took effect on January 1, 2026. This tax applies to the transfer between cultivators to the retailer.^[42] The Michigan Cannabis Industry Association is suing to try to overturn the massive new tax,^[43] which is causing some cannabis businesses to close their doors and lay off workers.^[44]

Year	Estimated State Sales Tax Revenue from Adult-Use Cannabis[45]
Dec. 2019	$1,118,289
2020	$81,705,350
2021	$209,912,278
2022	$326,049,074.16
2023	$473,303,560
2024	$523,552,765
2025	$507,275,129
Totals	$2,122,916,445

---

Illinois

Illinois (pop. 12.7 million) | Tax rate: 7% at wholesale; from 10-25% at retail, depending on potency; 6.25% standard sales tax

On June 25, 2019, Gov. J.B. Pritzker signed HB 1438 into law, legalizing and regulating cannabis for adults’ use. Sales from existing medical cannabis businesses began on January 1, 2020.

In the second year of sales, 2021, and every year since, annual cannabis tax revenue has surpassed half a billion dollars. From 2022 to 2023, Illinois’ cannabis revenue slightly declined for the first time. That is at least partially because neighboring Missouri legalized adult-use cannabis with one of the lowest excise tax rates in the nation. This reduced Illinois’ revenue from out-of-state customers, and led to some central Illinoisans buying cannabis in Missouri to save money. Illinois’ cannabis taxes rebounded in 2024, generating a record $577 million — an increase of around $25 million from 2023’s revenues. In 2025, Illinois experienced a modest decrease, with the state collecting $552 million in cannabis tax revenue, likely due to declining prices. Notably, in 2025, Illinois surpassed almost $3 billion in cannabis revenue since legal sales began in 2020.

Illinois’ law puts a strong emphasis on social equity and repairing harms caused by enforcement of laws that criminalized cannabis. In addition to investing 20% of adult-use cannabis tax revenue into mental health services, the state directs 25% of the funds to the Recover, Reinvest, and Renew Program, which supports local organizations in developing programs that benefit disadvantaged communities. Illinois has distributed over $499 million to this fund since legal cannabis sales began.^[46]

Year	State Sales Tax Revenue from Adult-Use Cannabis[47]
2020	$216,525,000
2021	$509,358,442
2022	$562,119,019
2023	$552,166,729
2024	$577,412,683
2025	$552,644,272
Totals	$2,970,226,145

---

Maine

Maine (pop. 1.4 million) | Tax rate: Until January 1, 2026 Wholesale tax of $335 per pound of flower with lower rates for trim and seedlings; 10% sales tax

Maine voters approved an initiative regulating cannabis for adults’ use in November 2016, but sales did not begin until October 9, 2020. Every year since sales began, Maine has seen an increase in cannabis tax revenue. In 2025, the state — which is home to just under 1.5 million residents — collected $43 million in revenue.

In 2025, Maine changed its taxes on cannabis. Starting on January 1, 2026, the cannabis excise tax rate changed from 10% to 14%.^[48] Also, the excise tax decreased from $335 to $223 per pound of flower.^[49]

The state’s legalization law divides cannabis tax revenue into two funds, one to support public health initiatives and the other for public safety and law enforcement training.

Year	State Sales Tax Revenue from Adult-Use Cannabis[50]
Oct. – Dec. 2020	$1,156,878
2021	$12,362,622
2022	$25,329,534
2023	$35,593,347
2024	$42,201,086
2025	$43,407,406
Totals	$160,050,873

---

Arizona

Arizona (pop. 7.6 million) | Tax rate: 16% excise tax on sales; 5.6% standard transaction privilege tax

Arizona voters approved an initiative regulating cannabis for adults’ use on November 3, 2020. Sales from around 120 existing medical cannabis businesses began less than four months later — on January 21, 2021.

Cannabis sales and tax revenues started out stronger than many states. Adult-use cannabis sales topped $1 billion in 2023, and every year since. In 2025, the state brought in over $246 million in excise taxes and transaction privilege taxes on adult-use cannabis, a slight decrease from the nearly $253 million generated in 2024. In 2025, Arizona surpassed $1 billion in adult-use cannabis revenue collected.

After regulatory and enforcement costs are paid, Arizona’s law distributes excise tax revenue as follows: 33% to community colleges, 31.6% to law enforcement and fire departments, 25.4% to transportation programs, and 10% to public health and criminal justice programs.^[51]

Year	State Tax Revenue from Adult-Use Cannabis[52]
2021	$153,824,757
2022	$223,863,799
2023	$257,926,777
2024	$253,061,173
2025	$246,722,756
Totals	$1,135,399,262

---

Montana

Montana (pop. 1.1 million) | Tax rate: 20% excise tax on sales

Montana voters approved an initiative regulating cannabis for adults’ use on November 3, 2020. Sales began on January 1, 2022. In its fourth full year of sales, 2025, Montana generated over $57 million in cannabis excise taxes, the highest yet. State law directs that revenue to substance abuse recovery programs, conservation efforts, and services for veterans and their families.

Year	State Tax Revenue from Adult-Use Cannabis[53]
2022	$41,989,466
2023	$51,636,106
2024	$55,521,165
2025	$74,570,927
Totals	$223,717,664

---

New Mexico

New Mexico (pop. 2.1 million) | Tax rate: started at 12% retail excise until July 1, 2025, then increases by one percentage point per year, maxing out at 18% on July 1, 2030; 5.125% state gross receipts tax. The tax rate was 12% until July 1, 2025, and 13% from July 1 2025, to June 30, 2026.New Mexico’s Cannabis Regulation Act legalizes and regulates cannabis for adults 21 and older. It passed the legislature on March 31, 2021, during a special session called for that purpose by Gov. Michelle Lujan Grisham. Gov. Grisham signed the bill on April 12, 2021. Sales began on April 2, 2022.

In its first full year of legal adult-use sales, New Mexico generated over $67 million in tax revenue. Meanwhile, in its second full year of legal adult-use sales, New Mexico generated over $76 million in tax revenue. In its third year of sales, the state collected $74 million, a slight decrease from the year before.

Much of the cannabis excise tax revenue goes to the municipal governments where sales take place.

Year	State Tax Revenue from Adult-Use Cannabis[54]
April - December 2022	$36,684,235
2023	$67,440,312
2024	$76,506,067
2025	$74,570,927
Totals	$255,201,541

---

New Jersey

New Jersey (pop. 9.5 million) | Tax rate: 6.625% standard sales tax, 1-2% local option taxes; fluctuating excise fee based on average sale price: $2.50 per ounce in 2025 and 2026

On November 3, 2020, more than two-thirds of New Jersey voters approved a legislatively-referred constitutional amendment directing the legislature and the Cannabis Regulatory Commission to regulate cannabis for adults’ use.

In March 2021, lawmakers approved twin bills to implement the amendment. In addition to the standard sales taxes and local cannabis taxes, New Jersey’s law imposes social equity excise fees (SEEF) on sales from cultivators, which regulators can adjust each year. The cultivation excise fees started at one-third of one percent of average retail sales prices. Beginning nine months after adult-use sales begin, and every year thereafter, the Cannabis Regulatory Commission can revise the fees, with fees increasing as the average retail price of cannabis drops. The Commission can levy excise fees at the following rates:

• up to $10 per ounce when average retail prices per ounce are $350 or higher;
• up to $30 per ounce when average retail prices per ounce are at least $250 but less than $350;
• up to $40 per ounce when average retail prices per ounce are at least $200 but less than $250; and
• up to $60 per ounce when average retail prices drop below $200 per ounce.

Sales began on April 21, 2022.

As of December 2024, New Jersey retail prices averaged $336 per ounce of flower.^[55] The SEEF was $1.10 per ounce in 2022, and increased to $1.52 per ounce in 2023.^[56] In 2024, the SEEF was reduced to $1.24 per ounce of cannabis. It was increased to $2.50 per ounce on January 1, 2025, and remained at $2.50 per ounce in 2026.^[57]

Taxes from New Jersey’s legal cannabis market largely support goals to promote social equity. The law requires 70% of cannabis revenue to provide economic assistance and services to “impact zones,” which are areas of the state disproportionately affected by prior enforcement of cannabis criminalization laws. In 2023, Gov. Phil Murphy announced that $5 million in tax revenue from legal cannabis sales will be used to help fund an initiative focused on stopping and preventing violence within the state.^[58]

Year	Tax and SEEF Revenue from Adult-Use Cannabis[59]
April - December 2022	$20,838,514
2023	$45,083,223
2024	$64,503,651
2025	$78,475,863
Totals	$208,901,251

---

Vermont

Vermont (pop. 644,000) | Tax rate: 14% excise tax on sales; 6% standard sales tax

On October 7, 2020, Gov. Phil Scott (R) allowed S. 54 to go into law without his signature. The law legalizes, regulates, and taxes cannabis sales for adults’ use. The legislature and governor had legalized personal possession and cultivation only in 2018. Regulated sales began on October 1, 2022.

In its first full year of legal sales, the small state generated over $21.3 million in cannabis excise taxes and sales taxes on adult-use cannabis. In the state’s second full year of legal sales, the state generated over $27.8 million in cannabis excise taxes and sales taxes on adult-use cannabis, an increase of $6.2 million from its first year of sales. In 2025, Vermont’s third full year of sales, the state saw the highest tax revenue collected, generating over $29.6 million in revenue. Vermont’s law requires that cannabis tax revenue be used “to establish a grant program that supports the expansion of universal afterschool and summer programs with a focus on underserved areas of the State.”^[60]

Year	State Tax Revenue from Adult-Use Cannabis[61]
October - December 2022	$2,371,429
2023	$21,642,857
2024	$27,842,857
2025	$29,663,047
Totals	$81,520,190

---

Rhode Island

Rhode Island (pop. 1.1 million) Tax rate: 10% excise, 3% local sales tax, 7% standard sales tax

On May 25, 2022, Gov. Dan McKee signed the Rhode Island Cannabis Act into law, legalizing and regulating cannabis for adults 21 and older. Sales began on December 1, 2022.

In its first full year of legal sales, Rhode Island generated over $12.6 million in state tax revenue from adult-use cannabis. Meanwhile, in the state’s second full year of legal sales, Rhode Island generated over $15.9 million in state tax revenue from adult-use cannabis. In 2025, Rhode Island’s third year of legal sales, the state collected over $17.3 in cannabis tax revenue.

Rhode Island’s cannabis excise tax revenue is deposited into a restricted receipt account within the state’s general fund. It can be used to support program administration; revenue collection and enforcement; substance use disorder prevention for adults and youth; education and public awareness campaigns, including awareness campaigns relating to driving under the influence of cannabis; treatment and recovery support services; public health monitoring, research, data collection, and surveillance; and law enforcement training and technology improvements, including grants to local law enforcement.^[62]

Year	State Tax Revenue from Adult-Use Cannabis[63]
December 2022	$579,439
2023	$12,621,982
2024	$15,995,635
2025	$17,308,477
Totals	$46,505,533

---

New York

New York (pop. 20 million) | Tax rate: 9% cannabis wholesale tax, 9% cannabis sales tax; 4% local sales tax

On March 31, 2021, then-Gov. Andrew Cuomo signed legislation (S.854-A/A.1248-A) legalizing and regulating cannabis for adults in New York. Sales began at a single location on December 29, 2022. We do not have tax revenue information for the three days in 2022 that New York had legal cannabis sales. In 2024, New York had 261 adult-use dispensaries, and by 2025 that number increased to 516. The New York Office of Cannabis Management’s Annual Report notes that by November 2025 the market saw $1.6 billion in adult-use cannabis sales.^[64]

New York has had one of the rockiest transitions to adult-use legal sales. A very small number of legal cannabis stores were authorized initially, while thousands of unlicensed cannabis stores began openly operating.^[65] The unlicensed stores employ signage and other marketing that is prohibited on the regulated market. This has resulted in less per capita revenue than other states have been able to realize.^[66] Provisions in New York’s 2024 budget allowed for stores illegally selling cannabis to be padlocked shut, and nearly 1,400 were shuttered in New York City alone.^[67]

In 2024, New York replaced a potency tax with the 9% wholesale excise tax.^[68] Until April 20, 2024, rather than a 9% wholesale tax, New York levied a tax per milligram of THC: $0.005 per milligram in flower, $0.008 per milligram in concentrates, and $0.03 per milligram for edibles. After regulatory and administrative costs, including workforce development, incubators, and drug recognition expert (DRE) training, 40% of cannabis revenue goes to education, 40% goes to community reinvestment, and 20% supports drug treatment and education.^[69]

Year	State Tax Revenue from Adult-Use Cannabis[70]
2023	$21,500,000
2024	$135,000,000
2025	$173,363,400
Totals	$329,863,400

---

Connecticut

Connecticut (pop. 3.6 million) | Tax rate: Until October 1, 2026: THC-based excise tax: $0.00625 per milligram of THC in flower cannabis; $0.0275/mg of THC in edibles; $0.009/mg of THC in other cannabis products; Effective October 1, 2026: 10.75% at retail; 6.35% standard sales tax; 3% tax to the municipality where the sales occurred

On June 22, 2021, Gov. Ned Lamont signed S.B. 1201 — “An Act Concerning the Equitable and Responsible Regulation of Cannabis” — into law, after it passed the Connecticut House and Senate.

Sales began on January 10, 2023. In its first year of legal sales, Connecticut generated over $24 million in state tax revenue from adult-use cannabis. In the state’s second year of sales, Connecticut saw $32 million in tax revenue. By the state’s third year of sales, adult-use cannabis tax revenue increased by almost $10 million, with 2025 adult-use cannabis revenue totaling $41.8 million.

Twenty-five percent of Connecticut’s excise tax goes to the Prevention and Recovery Services Fund. Until June 30, 2026, 60% of the excise tax will go to the Social Equity and Innovation Fund. On July 1, 2026, that will increase to 65%. Beginning on July 1, 2028, it will increase again and would remain at 75%.^[71]The 3% tax that goes to municipalities must be used for one of five specific purposes, such as re-entry services, mental health or addiction services, youth services bureaus, and streetscape improvements near cannabis retailers.^[72]

In 2026, the General Assembly passed a bill, which, starting on October 1, 2026, will replace the potency tax with a tax of 10.75% at retail.^[73]

Year	State Tax Revenue from Adult-Use Cannabis[74]
2023	$24,613,367
2024	$32,773,606
2025	$41,856,403
Totals	$99,243,376

---

Missouri

Missouri  (pop. 6.2 million) Tax rate: 6% excise tax on sales; standard 4.225% state sales tax; and local taxes

Missouri voters approved an initiative regulating cannabis for adults’ use on November 8, 2022. Sales from existing medical cannabis businesses began on February 6, 2023. In its first 11 months of legal sales, Missouri generated nearly $106 million in state tax revenue from adult-use cannabis. In 2024, the second year of sales, Missouri garnered over $130 million in cannabis revenue. In 2025, Missouri’s third year of sales, the state saw an increase of over $7 million, with $137 million in cannabis revenue.

After retaining no more than 2% of tax revenues, the Department of Revenue deposits the remainder into the “Veterans, Health, and Community Reinvestment Fund.” The fund initially covers any additional implementation costs, including the expungement of past cannabis convictions. The remainder is split evenly between three categories: veterans services, community grants related to treating substance use disorder and preventing drug overdose deaths, and the public defender system. As of April 1, 2026, the fund has transferred over $46 million to the Missouri Veterans Commission and the Department of Health and Human Services, along with over $35 million to the Public Defender System.^[75]

Year	State Tax Revenue from Adult-Use Cannabis[76]
February 6 - December 2023	$105,941,225
2024	$130,824,785
2025	$137,437,293
Totals	$374,203,303

---

Maryland

Maryland (pop. 6.2 million) Tax rate: 9% at point of sale until June 31, 2025, increased to 12% beginning July 1, 2025

On November 8, 2022, Maryland voters overwhelmingly approved a legislatively-referred ballot measure to legalize adults’ possession of cannabis. The General Assembly and governor enacted legislation in 2023 to enact a regulatory framework for sales. Existing medical dispensaries began sales to adult-use consumers on July 1, 2023, and a lottery was held in April 2024 for new social equity licenses.

In the first eight months of legal cannabis sales, Maryland generated more than $40 million in cannabis tax revenue. In 2024, Maryland’s first full year of sales, the state saw over $72 million in cannabis tax revenue. In 2025, its cannabis tax haul exceeded $90 million.

Initially, Maryland imposed a 9% retail tax on cannabis sales, which was one of the lowest cannabis tax rates in the nation. Pursuant to legislation passed in 2025 to address a budget gap, the rate increased to 12% on July 1, 2025.^[77] After administrative costs, tax revenue is distributed to a Community Reinvestment and Repair Fund (35% until fiscal year 2033), a Cannabis Business Assistance Fund (5% until 2028), to counties (5% with half going to municipalities), and the Cannabis Public Health Fund (5%).^[78] The remainder goes to the General Fund.

Year	State Tax Revenue from Adult-Use Cannabis[79]
July 1 - December 2023	$26,734,752
2024	$72,934,285
2025	$90,396,740
Totals	$190,065,777

---

Ohio

Ohio (pop. 11.9 million) Tax rate: 10% excise tax on sales; standard 5.75% state sales tax; and local taxes (up to 2.25%)

On November 7, 2023, voters approved Issue 2, making Ohio the 24th state to legalize cannabis for adults 21 and older. Legal adult-use cannabis sales began on August 7, 2024, from existing medical cannabis businesses.

From August 7, 2024, through the year’s end — just under five months, Ohio generated over $16 million in adult-use cannabis taxes. In 2025, Ohio’s first full year of sales, the Buckeye State brought in over $130 million in cannabis taxes.

Ohio’s legalization law imposes a 10% excise tax on retail sales of adult-use cannabis. The voter-enacted law allocated the excise tax revenue to social equity and jobs programs; communities hosting adult-use cannabis dispensaries; substance use disorder education and treatment; and cannabis regulatory and administrative costs. During the 2025 legislative session, Gov. Mike DeWine (R) and some lawmakers eliminated the social equity and jobs fund, and eliminated all allocations except to host communities. The remainder now goes to the General Fund.

Year	State Tax Revenue from Adult-Use Cannabis[80]
Aug. - Dec. 2024	$16,340,096
2025	$130,636,503
Totals	$146,976,599

---

Delaware

Delaware (pop. 1 million) Tax rate: 15% excise tax on sales

On April 22 and April 26, 2023, then-Gov. John Carney (D) allowed companion legalization bills — HB 1 and HB 2 — to become law without his signature.

Delaware’s initial legalization law did not provide for existing compassion centers (medical cannabis licensees) converting to dual use. On July 17, 2024, Governor Carney signed into law HB 408, which allowed them to apply to also serve adult-use consumers, to speed up adult-use access and revenue. In late 2024, the Office of the Marijuana Commissioner awarded a total of 124 cannabis licenses by lottery. The licenses were conditional and required several additional steps to be taken to convert to active licenses.

Cannabis sales were initially anticipated to begin in Spring 2025, but the process was delayed after the FBI said language that was used did not allow FBI background checks on applicants and workers. Lawmakers revised that language and sales began in August 2025. 

Cannabis is taxed at 15% at the point of retail sales to consumers. Seven percent of the proceeds are allocated to a Justice Reinvestment Fund, while the remainder is deposited in the General Fund.

Year	State Tax Revenue from Adult-Use Cannabis[83]
Aug. 1 2025 - Dec. 2025	$3,112,599
Totals	$3,112,599

---

Minnesota

Minnesota (pop. 5.8 million) Tax rate: 15% at retail, plus standard 6.875% sales tax 

On May 30, 2023, Gov. Tim Walz (D) signed HF 100 into law, legalizing cannabis for adults 21 and older. Unlike most adult-use states, the bill did not allow existing medical cannabis businesses — of which there are only two — to convert to also sell to adult-use consumers. 

Adult-use sales from state licensees began in September 2025. Sales had already begun at some businesses licensed by tribal governments.

Minnesota averaged $500,000 per month from adult-use cannabis tax revenue in 2025 since sales began.

 

Year	State Tax Revenue from Adult-Use Cannabis[85]
Sept. 16, 2025 - Dec. 2025 (estimate)	$2,001,026
Totals	$2,001,026

---

Combined Totals by Year (All States)

Year	Combined Totals by Year (All States)
2014	$68,503,980
2015	$264,211,871
2016	$530,521,110
2017	$736,534,982
2018	$1,308,693,928
2019	$1,749,459,667
2020	$2,856,307,217
2021	$3,934,089,074
2022	$3,816,898,917
2023	$4,185,783,924
2024	$4,420,797,233
2025	$4,570,126,266
Totals	$28,441,928,169

---