States have generated nearly $25 billion dollars in cannabis tax revenue

It has been over a decade since the first state adult-use cannabis markets launched in Washington and Colorado in 2014. Since then, legalizing cannabis for adults 21 and over has generated a combined total of more than $24.7 billion in tax revenue to invest in the needs of the states.

In 2024 alone, legalization states collectively generated more than $4.4 billion in cannabis tax revenue from adult-use sales, which is the most revenue generated by cannabis sales in a single year.

MPP’s new report demonstrates the far-reaching positive impact of a responsibly regulated cannabis marketplace on state budgets and on our society. Notably, cannabis tax revenue is helping to fund crucial social services and programs across the country, such as education, behavioral health, veterans’ services, job training, conservation, school construction, expungement, among many others. 

But our work is far from finished. We must continue to ensure that more states can reap the benefits of a sensibly regulated cannabis market. If taxed at a reasonable level, legal cannabis can help states face fiscal challenges and invest in communities and build a better future for everyone.