New Federal Data Reveals States Collected Over $8.7 Billion in Marijuana Taxes Since 2021
The U.S. Census Bureau has released updated figures showing that states that have legalized marijuana have reported collecting over $8.7 billion in cannabis tax revenue since mid-2021. California has reported the largest share of this revenue, with over $2 billion in tax income, followed by Washington State, Colorado, and Michigan.
The data includes figures through the second quarter of 2024, although not all states have submitted data for the latest quarter. The Census Bureau advises that the numbers should not be relied upon to estimate the total cannabis sales tax collected for the U.S., as the data is incomplete.
Among states that provided numbers for the latest quarter, California collected $156 million in cannabis taxes, followed by Michigan, Illinois, Colorado, Massachusetts, and Arizona. Jurisdictions with only medical marijuana sales reported lower revenue figures, including Louisiana, Mississippi, and Washington, D.C.
The data also shows that cannabis taxes collected by each state as a percentage of that state’s total tax revenue. For the most recent quarter, Alaska’s cannabis tax represented 1.27 percent of its total tax revenue, the highest among all states.
The revenue generated from marijuana sales is a significant contribution to state coffers, with some states experiencing significant increases in revenue from quarter to quarter. New York reported a 40.68 percent increase in revenue from the previous quarter, while Massachusetts and Alaska also saw increases.
The Census Bureau’s data is an important step in accounting for the size and scope of the cannabis industry, which remains federally illegal despite growing state legalization laws. The agency’s efforts to track and report cannabis tax revenue indicate an increasing willingness by the federal government to acknowledge the billions of dollars in annual economic activity generated by the industry.
Separately, a recent study found that consuming cannabis before exercising can result in heightened enjoyment and an enhanced “runner’s high.” The study found that participants reported higher levels of positive mood states when exercising under the influence of cannabis, and that the majority of participants reported various positive effects of cannabis on their exercise experience. However, the study also identified that using marijuana before exercise may lead to negative effects on the overall exercise experience.
