How do state taxes on marijuana work?

States impose excise taxes on marijuana sales. Taxes can be based on sale price, potency, or weight.

How do states use marijuana tax revenue?

States use revenue from marijuana to support a range of programs, including education, infrastructure, remedies for harm from enforcement of previous drug policies, and drug harm reduction.

Marijuana Tax Revenue by State

Marijuana can bring in big bucks for state governments.

By Lyle Daly – Updated Oct 6, 2026 at 8:00 PM EST | Fact-checked by Frank Bass

Key Points

States have reported over $27 billion in tax revenue from cannabis sales.
California, a leading state in cannabis tax revenue, collected $1 billion annually.
Marijuana tax rates vary by state, with rates as high as 37% in Washington.

Infographic displaying the legalization status of marijuana in the US and Puerto Rico — Image source: The Motley Fool

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Revenue

Revenue is a business’s gross income or the amount of money it brings in from regular operations before costs are considered.

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Data source: Alaska Department of Revenue (2026).
FISCAL YEAR	ALASKA STATE MARIJUANA TAX REVENUE
2017	$1,749,497
2018	$10,801,357
2019	$19,082,542
2020	$24,213,296
2021	$30,054,250
2022	$28,690,918
2023	$29,477,517
2024	$27,251,831
2025	$25,712,480

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Data source: Arizona Department of Revenue (2026).
FISCAL YEAR	ARIZONA STATE MARIJUANA TAX REVENUE
2021	$74,386,952
2022	$255,997,918
2023	$283,179,058
2024	$289,879,253
2025	$283,565,186
2026	$281,961,540
2027 (July-August)	$48,123,324

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Data source: Media reports.
FISCAL YEAR	ARKANSAS STATE MARIJUANA TAX REVENUE
2019	$2,900,000
2020	$21,200,000
2021	$33,100,000
2022	$32,000,000
2023	$31,089,000
2024	$31,170,000
2025	$32,300,000

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Data source: California Department of Tax and Fee Administration (2026).
YEAR	CALIFORNIA STATE MARIJUANA TAX REVENUE
2018	$401,278,043
2019	$646,099,322
2020	$1,134,351,711
2021	$1,360,449,850
2022	$1,115,635,546
2023	$1,096,914,995
2024	$1,067,381,063
2025	$1,058,640,541
2026 (January-June)	$511,539,484

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Data source: Colorado Department of Revenue (2026).
YEAR	COLORADO STATE MARIJUANA TAX REVENUE
2014	$67,594,323
2015	$130,411,173
2016	$193,604,810
2017	$247,368,473
2018	$266,529,637
2019	$302,458,426
2020	$387,480,110
2021	$423,486,053
2022	$325,103,684
2023	$274,121,043
2024	$255,360,702
2025	$236,449,405
2026 (January-July)	$132,910,105

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Data source: Connecticut State Department of Revenue Services (2026).
FISCAL YEAR	CONNECTICUT STATE MARIJUANA TAX REVENUE
2023	$4,675,642
2024	$20,509,089
2025	$22,657,073

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Data source: State of Hawaii Department of Health (2026).
YEAR	HAWAII STATE MARIJUANA TAX REVENUE
2017	$99,871
2018	$572,170
2019	$1,201,168
2020	$2,023,138
2021	$2,568,947
2022	$2,428,035
2023	$2,588,588
2024	$2,937,877
2025	$2,828,019

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Data source: Illinois Department of Revenue (2026).
FISCAL YEAR	ILLINOIS STATE MARIJUANA TAX REVENUE
2020	$52,783,471
2021	$317,074,562
2022	$466,816,883
2023	$451,868,765
2024	$457,284,195
2025	$474,058,705

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Data source: Louisiana Department of Revenue (2026).

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Data source: Maine Department of Administrative and Financial Services (2026).

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Data source: Maryland Cannabis Administration (2026).

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Data source: Massachusetts Office of the Comptroller (2026).

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Data source: Michigan Department of Treasury (2026).

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Data source: Mississippi Department of Revenue (2026).

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Data source: Missouri Department of Revenue (2026).

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Data source: Montana Department of Revenue (2026).

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Data source: Nevada Department of Taxation (2026).

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Data source: New Jersey Cannabis Regulatory Commission (2026).

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Data source: New Mexico Regulation & Licensing Department (2026).

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Data source: New York State Office of Cannabis Management (2026).

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Data source: Ohio Department of Commerce Division of Cannabis Control (2026).

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Data source: Oklahoma Tax Commission (2026).

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Data source: Oregon Department of Revenue (2026).

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Data source: State of Rhode Island Division of Taxation (2026).

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Data source: Vermont Department of Taxation (2026).

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Data source: Washington State Liquor and Cannabis Board (2026).

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About the Author

Lyle Daly is a contributing Motley Fool stock market analyst covering information technology and cryptocurrency. Lyle has been a contributor at the financial services company since 2018. His work has been featured on USA Today, Yahoo Finance, MSN, Fox Business, and Nasdaq. Before joining The Motley Fool, he wrote for financial brands including Intuit.

TMFLyleDaly

@LyleDaly

The Motley Fool has a disclosure policy.

Marijuana Tax Revenue by State

Marijuana can bring in big bucks for state governments.

Key Points

Revenue

FAQs

How do state taxes on marijuana work?

How do state taxes on marijuana work?

How do states use marijuana tax revenue?

How do states use marijuana tax revenue?

Sources

About the Author

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Revenue

Sources

FAQs

How do state taxes on marijuana work?

How do state taxes on marijuana work?

How do states use marijuana tax revenue?

How do states use marijuana tax revenue?

Marijuana tax revenue by state

Marijuana tax rates by state

Medical marijuana tax collection

Total tax collections by state

Total marijuana tax revenue collected by year

State-by-state revenue breakdown

Alaska's marijuana tax revenue

Arizona's marijuana tax revenue

Arkansas's marijuana tax revenue

California's marijuana tax revenue

Colorado's marijuana tax revenue

Connecticut's marijuana tax revenue

Delaware's marijuana tax revenue

District of Columbia's marijuana tax revenue

Hawaii's marijuana tax revenue

Illinois's marijuana tax revenue

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Louisiana's marijuana tax revenue

Maine's marijuana tax revenue

Maryland's marijuana tax revenue

Massachusetts's marijuana tax revenue

Michigan's marijuana tax revenue

Minnesota's marijuana tax revenue

Mississippi's marijuana tax revenue

Missouri's marijuana tax revenue

Montana's marijuana tax revenue

Nevada's marijuana tax revenue

New Jersey's marijuana tax revenue

New Mexico's marijuana tax revenue

New York's marijuana tax revenue

Ohio's marijuana tax revenue

Oklahoma's marijuana tax revenue

Oregon's marijuana tax revenue

Rhode Island's marijuana tax revenue

Vermont's marijuana tax revenue

Virginia's marijuana tax revenue

Washington's marijuana tax revenue

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