Where cannabis is supporting tax revenue the most
Photo illustration by Stacker // Shutterstock
Where cannabis is supporting tax revenue the most
Cannabis leaf over currency background.
Cannabis raked in $2.9 billion in state tax revenues in 2023, according to Census Bureau data, even as it remains illegal at a federal level.
These contributions could escalate further if the federal government loosens restrictions on marijuana, which reports say could be in the works. The Washington Post reported that Attorney General Merrick Garland plans to recommend cannabis be reclassified from a Schedule I controlled substance—where it currently rates alongside drugs such as heroin and LSD—to a Schedule III drug, allowing it to be prescribed and sold with restrictions.
Despite federal regulations, marijuana is fully legal for medical and recreational use in 23 states and Washington D.C., with many others allowing its use on some level. Stacker analyzed Census Bureau data to identify where in the United States cannabis tax revenues have the highest impact.
Stacker ranked states by cannabis excise sales taxes as a percentage of general sales and gross receipts taxes in the fourth quarter of 2023. The analysis also presents information on per capita cannabis tax revenues and the state’s cannabis legalization status, though these don’t factor into the ranking. Only the 23 states with recorded cannabis tax incomes were included in the analysis, and two were unranked, as data on general sales tax incomes were unavailable.
Where legalized and taxed, marijuana is already a major contributor to local economies. Cannabis—alongside other “sin tax” items like alcohol—is typically taxed at a higher rate to fund solutions for the negative consequences of its use or history. That means it has the potential to bring in a supersized portion of tax revenues, with some earmarked for substance use disorder education or prevention and reinvestment in communities that were disproportionately harmed by the War on Drugs.
Read on to see how much tax revenue cannabis generates in your state.
mffoto // Shutterstock
Unranked: Alaska
Aerial view of Haines city.
– Cannabis’s share of general sales/gross receipts tax revenue: Not available
– Total cannabis excise sales tax revenue, Q4 2023: $7.0 million ($9.59 per resident)
– Legal status: Fully legal
– Year of legalization: 2014
Jon Bilous // Shutterstock
Unranked: Montana
View of Missoula from Mount Sentinel.
– Cannabis’s share of general sales/gross receipts tax revenue: Not available
– Total cannabis excise sales tax revenue, Q4 2023: $13.4 million ($11.84 per resident)
– Legal status: Fully legal
– Year of legalization: 2020
Canva
#21. Louisiana
Red streetcar on Canal Street in New Orleans.
– Cannabis’s share of general sales/gross receipts tax revenue: 0.02%
– Total cannabis excise sales tax revenue, Q4 2023: $239,000 ($0.05 per resident)
– Legal status: Decriminalized and medical use allowed
– Year of legalization: 2015 (decriminalized in 2021)
Sean Pavone // Shutterstock
#20. Mississippi
Biloxi Lighthouse on a clear day.
– Cannabis’s share of general sales/gross receipts tax revenue: 0.03%
– Total cannabis excise sales tax revenue, Q4 2023: $334,000 ($0.11 per resident)
– Legal status: CBD with THC Only
– Year of legalization: 2014 (decriminalized in 1978)
Orhan Cam // Shutterstock
#19. Washington DC
Georgetown and Key bridge.
– Cannabis’s share of general sales/gross receipts tax revenue: 0.06%
– Total cannabis excise sales tax revenue, Q4 2023: $301,000 ($0.44 per resident)
– Legal status: Fully legal
– Year of legalization: 2014
ESB Professional // Shutterstock
#18. Pennsylvania
Pittsburgh cityscape over the Allegheny River.
– Cannabis’s share of general sales/gross receipts tax revenue: 0.22%
– Total cannabis excise sales tax revenue, Q4 2023: $8.7 million ($0.67 per resident)
– Legal status: Medical use only
– Year of legalization: 2016
Richard Cavalleri // Shutterstock
#17. Rhode Island
Prospect Terrace Park view of the Providence skyline and Roger Williams statue.
– Cannabis’s share of general sales/gross receipts tax revenue: 0.28%
– Total cannabis excise sales tax revenue, Q4 2023: $1.2 million ($1.06 per resident)
– Legal status: Fully legal
– Year of legalization: 2022
Eduardo Medrano // Shutterstock
#16. Arkansas
Afternoon Little Rock cityscape.
– Cannabis’s share of general sales/gross receipts tax revenue: 0.29%
– Total cannabis excise sales tax revenue, Q4 2023: $3.7 million ($1.19 per resident)
– Legal status: Medical use only
– Year of legalization: 2016
Ryan DeBerardinis // Shutterstock
#15. New York
Crowds of people walk across 3rd Avenue in Manhattan.
– Cannabis’s share of general sales/gross receipts tax revenue: 0.29%
– Total cannabis excise sales tax revenue, Q4 2023: $14.8 million ($0.76 per resident)
– Legal status: Fully legal
– Year of legalization: 2021
Vincent DeMilio // Shutterstock
#14. New Jersey
Jersey Shore coastline aerial view.
– Cannabis’s share of general sales/gross receipts tax revenue: 0.30%
– Total cannabis excise sales tax revenue, Q4 2023: $9.8 million ($1.05 per resident)
– Legal status: Fully legal
– Year of legalization: 2020
Sean Pavone // Shutterstock
#13. Connecticut
Connecticut State Capitol building
– Cannabis’s share of general sales/gross receipts tax revenue: 0.58%
– Total cannabis excise sales tax revenue, Q4 2023: $9.0 million ($2.50 per resident)
– Legal status: Fully legal
– Year of legalization: 2021
TierneyMJ // Shutterstock
#12. California
Aerial view downtown at sunset.
– Cannabis’s share of general sales/gross receipts tax revenue: 1.18%
– Total cannabis excise sales tax revenue, Q4 2023: $160.7 million ($4.12 per resident)
– Legal status: Fully legal
– Year of legalization: 2016
TLF Images // Shutterstock
#11. Oklahoma
Historic Route 66 sign in small town.
– Cannabis’s share of general sales/gross receipts tax revenue: 1.26%
– Total cannabis excise sales tax revenue, Q4 2023: $12.2 million ($3.00 per resident)
– Legal status: Medical use only
– Year of legalization: 2015
Sean Pavone // Shutterstock
#10. Missouri
Kansas City downtown with Union Station.
– Cannabis’s share of general sales/gross receipts tax revenue: 1.42%
– Total cannabis excise sales tax revenue, Q4 2023: $18.1 million ($2.92 per resident)
– Legal status: Fully legal
– Year of legalization: 2023 (decriminalized in 2014)
Gregory E. Clifford // Shutterstock
#9. Arizona
Scenic view of Phoenix.
– Cannabis’s share of general sales/gross receipts tax revenue: 1.54%
– Total cannabis excise sales tax revenue, Q4 2023: $44.2 million ($5.95 per resident)
– Legal status: Fully legal
– Year of legalization: 2020
Joseph Sohm // Shutterstock
#8. Maine
Portland Head Lighthouse and coastline.
– Cannabis’s share of general sales/gross receipts tax revenue: 1.62%
– Total cannabis excise sales tax revenue, Q4 2023: $9.5 million ($6.81 per resident)
– Legal status: Fully legal
– Year of legalization: 2016
Sean Pavone // Shutterstock
#7. Illinois
Chicago skyline and park in Autumn.
– Cannabis’s share of general sales/gross receipts tax revenue: 1.71%
– Total cannabis excise sales tax revenue, Q4 2023: $69.1 million ($5.51 per resident)
– Legal status: Fully legal
– Year of legalization: 2019
Richard Cavalleri // Shutterstock
#6. Massachusetts
Aerial view of Boston.
– Cannabis’s share of general sales/gross receipts tax revenue: 1.84%
– Total cannabis excise sales tax revenue, Q4 2023: $44.1 million ($6.30 per resident)
– Legal status: Fully legal
– Year of legalization: 2016
kan_khampanya // Shutterstock
#5. Washington
Elevated view of Seattle Space Needle and downtown.
– Cannabis’s share of general sales/gross receipts tax revenue: 1.96%
– Total cannabis excise sales tax revenue, Q4 2023: $113.4 million ($14.51 per resident)
– Legal status: Fully legal
– Year of legalization: 2012
Jacob Boomsma // Shutterstock
#4. Michigan
Aerial view of downtown Lansing.
– Cannabis’s share of general sales/gross receipts tax revenue: 2.34%
– Total cannabis excise sales tax revenue, Q4 2023: $73.6 million ($7.33 per resident)
– Legal status: Fully legal
– Year of legalization: 2018
Canva
#3. Vermont
Montpelier city skyline.
– Cannabis’s share of general sales/gross receipts tax revenue: 2.62%
– Total cannabis excise sales tax revenue, Q4 2023: $4.0 million ($6.14 per resident)
– Legal status: Fully legal
– Year of legalization: 2020
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#2. Colorado
Denver cityscape.
– Cannabis’s share of general sales/gross receipts tax revenue: 5.26%
– Total cannabis excise sales tax revenue, Q4 2023: $61.0 million ($10.37 per resident)
– Legal status: Fully legal
– Year of legalization: 2012
Nadia Yong // Shutterstock
#1. Oregon
Portland cityscape and Mount Hood in autumn.
– Cannabis’s share of general sales/gross receipts tax revenue: 11.43%
– Total cannabis excise sales tax revenue, Q4 2023: $35.9 million ($8.47 per resident)
– Legal status: Fully legal
– Year of legalization: 2014
Story editing by Nicole Caldwell. Copy editing by Paris Close.
