Montana’s Legal Marijuana Market Sees Significant Shift
Since the legalization of adult-use marijuana in Montana on January 1, 2022, the state’s retailers have sold over $1 billion worth of product. This growth has been driven by a significant increase in adult-use sales, which has more than offset a decline in medical marijuana sales.
According to data from the Montana Department of Revenue, total monthly sales of medical and adult-use marijuana increased by 13% between 2022 and 2025, reaching $27.3 million. During the same period, medical marijuana sales alone fell by more than 70%. In 2022, medical marijuana accounted for 40% of sales, but by 2025, it accounted for only around 10%.
The shift towards adult-use sales is driven by the tax rate, with adult-use marijuana taxed at 20% and medical marijuana taxed at 4%. As a result, the growth in adult-use sales generates significantly more revenue than medical marijuana sales. In 2022, Montana collected $217 million in marijuana tax revenue, with $207 million coming from adult-use sales.
Some experts suggest that some adult-use purchases may still be driven by medical needs, as buyers may not recoup the upfront cost of a medical marijuana card that qualifies them for the lower sales tax rate. However, the majority of adult-use sales are likely driven by recreational use.
The significant growth in adult-use sales has resulted in a market that looks vastly different from 2022, when medical marijuana accounted for a larger share of sales. The trend is expected to continue, with Montana’s retailers likely to continue to sell more adult-use marijuana products in the future.
