Report: Cannabis Excise Taxes Totaled Over $3.5 Billion Across 30 U.S. States Last Year

Locally licensed cannabis retailers in 30 U.S. states and the District of Columbia generated about $3.55 billion in cannabis excise tax revenues between July 2025 and June 2026, according to a U.S. Census report.

Cannabis is still federally prohibited, although the U.S. Census Bureau started tracking excise tax revenue from state-level medical and adult-use cannabis reforms through the Quarterly Summary of State and Local Government Tax Revenue (QTAX) survey in 2021. Total cannabis tax revenue has increased 15.7% since the bureau began tracking the data, according to the report.

Washington state and Montana have the highest per capita cannabis revenues, earning $53.25 and $52.05 per person in cannabis excise taxes, respectively, followed by Colorado at $36.75.

Overall, cannabis tax revenues have increased for three straight years in the U.S. — cannabis revenues did recede from 2022 to 2023, but that was when the nation’s largest market, California, eliminated its cultivation tax to help struggling businesses stay afloat.

Meanwhile, Alabama is the latest state to launch a regulated cannabis market and start collecting cannabis excise taxes, following the launch of its medical program in May 2026.