Cannabis Friendly States Reap Over $15 Billion In Tax Revenues Since 2014

As of the end of 2022, U.S. states have reported a combined total of more than $15.1 billion in tax revenue from legal, adult-use cannabis sales since 2014, according to a new report  by the Marijuana Policy Project (MPP), a Washington DC based cannabis policy reform organization.

“In 2022 alone, legalized states generated more than $3.77 billion in cannabis tax revenue from adult-use sales,” the MPP says.

Although cannabis sales have continued to generate billions in annual tax revenue, 2022 was the first year with decreased tax revenues compared to the prior year. “Even as new states came online, there was a slight decrease in total state cannabis tax revenue — from over $3.86 billion in 2021 compared to $3.77 billion in 2022,” says the report.

2022’s revenue decreases were “due to a multitude of factors,” says Andrew Livingston, Director of Economics and Research for the cannabis-centered law firm, Vicente LLP. “And one of them is likely COVID-related. Before 2022, every legalization state had seen annual increases in cannabis tax revenue.”

Twenty-two states have now passed laws to legalize cannabis possession for adults. All but two of them — Maryland and Virginia — have also legalized, regulated, and taxed cannabis sales.

“States that have made the decision to legalize and regulate cannabis are benefiting from hundreds of millions in tax revenue each year,” said Toi Hutchinson, President and CEO of the MPP. “The states that lag behind will not only be doing a disservice to their constituents — they will also be leaving money on the table.”