The marijuana revenue doesn’t even include tax revenue from separate medical cannabis programs that are in place in a majority of U.S. states.
By Kyle Jaeger, Marijuana Moment
States that have legalized marijuana have collectively garnered more than $10 billion in cannabis tax revenue since the first legal sales started in 2014, according to a report released by the Marijuana Policy Project (MPP) on Thursday.
The adult-use legalization movement that started in Colorado and Washington State has greatly expanded in the years since, with 18 states having moved to end prohibition and most taxing and regulating marijuana sales. As of December 2021, sales have translated into about $10.4 billion in tax revenue for states that are now using those dollars to fund various programs and initiatives, the report found.

That doesn’t even include tax revenue from separate medical cannabis programs that are in place in a majority of U.S. states.
The report from MPP—which expands on an earlier analysis it released in May—breaks down revenue numbers from legal states, how those tax dollars are being used and what kinds of tax schemes will soon be in effect as more states like New York, New Jersey and Montana implement legalization.
“States that have legalized cannabis for adults are reaping significant economic benefits. The legal adult-use cannabis industry has now generated over $10 billion in new tax revenue, and in many instances that revenue is being distributed to much needed public services and programs, including reinvesting in communities that were devastated by the war on drugs,” Karen O’Keefe, director of state policies at MPP, said. “This is in stark contrast to prohibition, which costs taxpayers billions of dollars each year to enforce.”
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