Data released by the U.S. Census Bureau shows that states collected approximately $3.55 billion in taxes tied to legal cannabis sales from July 2025 through June 2026.
The federal agency’s updated data show that state governments have generated over $15.8 billion in cannabis-related tax revenue since the bureau began recording the figures in 2021. The states reported approximately $987.5 million in collections during 2026’s second quarter.
California led the country during the April-to-June period, bringing in $161 million. Washington followed with $153.1 million, while Michigan collected $110.6 million. New York reported $76.8 million, Illinois recorded $71.8 million, and Colorado took in $55 million.
California has also generated the largest cumulative amount since the agency began tracking the figures, collecting over $3.3 billion. That accounts for roughly one-fifth of the nationwide total recorded during the period.
Washington ranks second at about $2.3 billion, while Colorado and Illinois rank third, each at approximately $1.4 billion. Michigan reported $1.3 billion, while Massachusetts, Arizona, and Oregon recorded $879.1 million, $831.2 million, and $811.6 million, respectively.
The federal dataset does not cover marijuana tax collections from before the third quarter of 2021. The agency noted that national receipts have generally risen over time, although collections declined in 2023. California’s decision to eliminate its cultivation tax that year was identified as the primary reason, as officials sought to lower retail prices, reduce costs, and limit illicit sales.
Receipts increased again afterward as additional states developed regulated recreational markets. Minnesota and Delaware were highlighted as jurisdictions with quickly expanding adult-use industries.
On a per-person basis, Montana and Washington reported the highest annual cannabis excise collections, exceeding $50 for every resident. The Census Bureau attributed those levels partly to retail tax rates of 37% in Washington and 20% in Montana.
The federal figures do not necessarily match state reports since the bureau uses its own definition of state government. Its calculations can include institutions, public agencies, commissions, and authorities in addition to traditional branches of government.
The bureau also cautioned that its quarterly figures do not represent sales from the same period in which they are published, as collections are generally reported after the underlying transactions occur.
Other recent studies have estimated even larger economic effects. Yale researchers projected that nationwide legalization could produce $57.9 billion in additional tax revenue over ten years. Meanwhile, industry analysts reported that U.S. cannabis sales revenue declined year over year in 2025, marking the first such drop since recreational markets began expanding nationally in 2014.
For established marijuana companies like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) that don’t have operations in the U.S. but have a solid presence internationally, the data on the marijuana taxes going to state governments in the U.S. shows how the industry is helping to fund government activities and contribute to development.
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