How Much States Make From Marijuana Tax Revenue

Find out what kind of money it brings in.

By Jordan Rosenfeld May 28, 2021 Understanding the Economy

Marijuana has come a long way from its status as an illicit substance to now being recognized for its medical and recreational purposes in many states. Nine states have fully legalized it, and more are considering it. With legalization, the states now have the ability to bring immense revenues, as well.

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To determine just how much tax revenue states are or could receive from the legal sale of marijuana, GOBankingRates looked at Tax Foundation’s data in their article titled “Several States Considering Legal Recreational Marijuana.” Find out how much these states are bringing in.

Last updated: April 16, 2021

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Alabama

Potential revenue: $92,217,856
Actual revenue: N/A
5-year potential revenues: $461,089,280
% actual revenue made on potential revenue: N/A

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Alaska

Potential revenue: $28,258,632
Actual revenue: $24,540,009
5-year potential revenues: $141,293,160
% actual revenue made on potential revenue: 86.84%

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Arizona

Potential revenue: $183,169,705
Actual revenue: N/A
5-year potential revenues: $915,848,525
% actual revenue made on potential revenue: N/A

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Arkansas

Potential revenue: $59,314,764
Actual revenue: N/A
5-year potential revenues: $296,573,820
% actual revenue made on potential revenue: N/A

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California

Potential revenue: $1,086,253,401
Actual revenue: $474,100,000
5-year potential revenues: $5,431,267,005
% actual revenue made on potential revenue: 43.65%

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Colorado

Potential revenue: $230,239,177
Actual revenue: 307,278,327
5-year potential revenues: $1,151,195,885
% actual revenue made on potential revenue: 133.46%

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Connecticut

Potential revenue: $97,696,550
Actual revenue: N/A
5-year potential revenues: $488,482,750
% actual revenue made on potential revenue: N/A

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Delaware

Potential revenue: $24,566,974
Actual revenue: N/A
5-year potential revenues: $122,834,870
% actual revenue made on potential revenue: N/A

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Florida

Potential revenue: $448,740,070
Actual revenue: N/A
5-year potential revenues: $2,243,700,350
% actual revenue made on potential revenue: N/A

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Georgia

Potential revenue: $198,400,771
Actual revenue: N/A
5-year potential revenues: $992,003,855
% actual revenue made on potential revenue: N/A

Hawaii

Potential revenue: $28,453,985
Actual revenue: N/A
5-year potential revenues: $142,269,9255
% actual revenue made on potential revenue: N/A

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Idaho

Potential revenue: $33,295,445
Actual revenue: N/A
5-year potential revenues: $166,477,225
% actual revenue made on potential revenue: N/A

Illinois

Potential revenue: $277,576,356
Actual revenue: $34,700,000
5-year potential revenues: $1,387,881,780
% actual revenue made on potential revenue: 12.50%

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Indiana

Potential revenue: $157,009,061
Actual revenue: N/A
5-year potential revenues: $785,045,305
% actual revenue made on potential revenue: N/A

Iowa

Potential revenue: $50,183,462
Actual revenue: N/A
5-year potential revenues: $250,917,310
% actual revenue made on potential revenue: N/A

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Kansas

Potential revenue: $42,058,743
Actual revenue: N/A
5-year potential revenues: $210,293,715
% actual revenue made on potential revenue: N/A

Kentucky

Potential revenue: $83,008,154
Actual revenue: N/A
5-year potential revenues: $415,040,770
% actual revenue made on potential revenue: N/A

Louisana

Potential revenue: $81,616,779
Actual revenue: N/A
5-year potential revenues: $408,083,895
% actual revenue made on potential revenue: N/A

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Maine

Potential revenue: $50,685,850
Actual revenue: N/A
5-year potential revenues: $253,429,250
% actual revenue made on potential revenue: N/A

Maryland

Potential revenue: $135,837,117
Actual revenue: N/A
5-year potential revenues: $679,185,585
% actual revenue made on potential revenue: N/A

Michigan

Potential revenue: $288,183,493
Actual revenue: $9,692,684
5-year potential revenues: $1,440,917,465
% actual revenue made on potential revenue: 3.36%

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Massachusetts

Potential revenue: $214,347,227
Actual revenue: 51,680,000
5-year potential revenues: $1,071,736,135
% actual revenue made on potential revenue: 24.11%

Minnesota

Potential revenue: $122,072,389
Actual revenue: N/A
5-year potential revenues: $610,361,945
% actual revenue made on potential revenue: N/A

Mississippi

Potential revenue: $47,304,242
Actual revenue: N/A
5-year potential revenues: $236,521,210
% actual revenue made on potential revenue: N/A

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Missouri

Potential revenue: $119,222,374
Actual revenue: N/A
5-year potential revenues: $596,111,870
% actual revenue made on potential revenue: N/A

Montana

Potential revenue: $35,142,502
Actual revenue: N/A
5-year potential revenues: $175,712,510
% actual revenue made on potential revenue: N/A

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Nebraska

Potential revenue: $35,142,502
Actual revenue: N/A
5-year potential revenues: $35,975,930
% actual revenue made on potential revenue: N/A

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Nevada

Potential revenue: $106,255,348
Actual revenue: $105,180,947
5-year potential revenues: $531,276,740
% actual revenue made on potential revenue: 98.99%

New Hampshire

Potential revenue: $44,163,575
Actual revenue: N/A
5-year potential revenues: $220,817,875
% actual revenue made on potential revenue: N/A

New Jersey

Potential revenue: $158,974,353
Actual revenue: N/A
5-year potential revenues: $794,871,765
% actual revenue made on potential revenue: N/A

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New Mexico

Potential revenue: $61,692,434
Actual revenue: N/A
5-year potential revenues: $308,462,170
% actual revenue made on potential revenue: N/A

New York

Potential revenue: $431,141,823
Actual revenue: N/A
5-year potential revenues: $2,155,709,115
% actual revenue made on potential revenue: N/A

North Carolina

Potential revenue: $182,947,622
Actual revenue: N/A
5-year potential revenues: $914,738,110
% actual revenue made on potential revenue: N/A

North Dakota

Potential revenue: $13,231,599
Actual revenue: N/A
5-year potential revenues: $66,157,995
% actual revenue made on potential revenue: N/A

Ohio

Potential revenue: $220,827,478
Actual revenue: N/A
5-year potential revenues: $1,104,137,390
% actual revenue made on potential revenue: N/A

Oklahoma

Potential revenue: $67,680,000
Actual revenue: N/A
5-year potential revenues: $338,400,000
% actual revenue made on potential revenue: N/A

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Oregon

Potential revenue: $182,845,089
Actual revenue: $133,150,349
5-year potential revenues: $914,225,445
% actual revenue made on potential revenue: 72.82%

Pennsylvania

Potential revenue: $244,553,615
Actual revenue: N/A
5-year potential revenues: $1,222,768,075
% actual revenue made on potential revenue: N/A

Rhode Island

Potential revenue: $35,455,500
Actual revenue: N/A
5-year potential revenues: $177,277,500
% actual revenue made on potential revenue: N/A

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South Carolina

Potential revenue: $96,680,914
Actual revenue: N/A
5-year potential revenues: $483,404,570
% actual revenue made on potential revenue: N/A

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South Dakota

Potential revenue: $14,270,281
Actual revenue: N/A
5-year potential revenues: $71,351,405
% actual revenue made on potential revenue: N/A

Tennessee

Potential revenue: $132,509,552
Actual revenue: N/A
5-year potential revenues: $662,547,760
% actual revenue made on potential revenue: N/A

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Texas

Potential revenue: $397,424,206
Actual revenue: N/A
5-year potential revenues: $1,987,121,030
% actual revenue made on potential revenue: N/A

Utah

Potential revenue: $44,428,908
Actual revenue: N/A
5-year potential revenues: $222,144,540
% actual revenue made on potential revenue: N/A

Vermont

Potential revenue: $27,313,974
Actual revenue: N/A
5-year potential revenues: $136,569,870
% actual revenue made on potential revenue: N/A

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Virginia

Potential revenue: $139,977,848
Actual revenue: N/A
5-year potential revenues: $699,889,240
% actual revenue made on potential revenue: N/A

Washington

Potential revenue: $285,674,135
Actual revenue: $469,200,000
5-year potential revenues: $1,428,370,675
% actual revenue made on potential revenue: 164.24%

West Virginia

Potential revenue: $38,327,540
Actual revenue: N/A
5-year potential revenues: $191,637,700
% actual revenue made on potential revenue: N/A

Wisconsin

Potential revenue: $117,791,078
Actual revenue: N/A
5-year potential revenues: $588,955,390
% actual revenue made on potential revenue: N/A

Wyoming

Potential revenue: $10,054,045
Actual revenue: N/A
5-year potential revenues: $50,270,225
% actual revenue made on potential revenue: N/A

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Methodology: For this piece GOBankingRates looked at Tax Foundation’s data in their article titled “Several States Considering Legal Recreational Marijuana”. With this data, GOBankingRates found for all 50 states the (1) potential revenue from recreational marijuana taxes and (2) the 5-year potential revenues from recreational marijuana taxes. Then, for the nine states where marijuana is already fully legal and regulated, GOBankingRates found the (3) actual (FY 2020) tax revenues from recreational marijuana and (4) percent the actual revenue made when compared to the state’s potential revenue. All data was collected on and up to date as of April 1, 2021.

About the Author

Jordan Rosenfeld

Jordan Rosenfeld is a freelance writer and author of nine books. She holds a B.A. from Sonoma State University and an MFA from Bennington College. Her articles and essays about finances and other topics has appeared in a wide range of publications and clients, including The Atlantic, The Billfold, Good Magazine, GoBanking Rates, Daily Worth, Quartz, Medical Economics, The New York Times, Ozy, Paypal, The Washington Post and for numerous business clients. As someone who had to learn many of her lessons about money the hard way, she enjoys writing about personal finance to empower and educate people on how to make the most of what they have and live a better quality of life.