How Much States Make From Marijuana Tax Revenue

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.

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%

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

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

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%

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%

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

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

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

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

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%

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

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

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%

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

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

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

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

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

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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

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

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

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

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.

 

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