States have generated nearly $25 billion in revenue from recreational cannabis since the first sales started over a decade ago, according to a new report from a leading advocacy group.
The Marijuana Policy Project (MPP) also said that in 2024 alone, states collected $4.4 billion in recreational cannabis tax revenue—the most ever garnered in a single year. Seven states took in over $200 million each, with four of those seeing more than $500 million in revenue and one exceeding $1 billion.
“At a time when federal funding cuts are putting pressure on states’ budgets, adult-use cannabis taxes are bringing billions of dollars into states’ coffers,” Lauren Daly, interim executive director at MPP, said in a press release.
“Legal adult-use markets have also contributed to significant job growth, creating thousands of new employment and small business opportunities,” she said. “While economic growth isn’t the primary reason for legalizing adult-use cannabis, it is undeniably a great benefit.”
The new adult-use-focused analysis does not account for additional revenue that states have collected from medical marijuana sales.
MPP has been consistently tracking state cannabis tax data, and this latest report shows that states generated about $200 million more in 2024 compared to 2023.
“Cannabis prohibition destroys lives by tearing apart families and creating life-altering criminal records that stand in the way of jobs, housing, and an education,” Karen O’Keefe, director of state policies at MPP, said. “Cannabis legalization dramatically reduces the number of arrests and wasted law enforcement resources, while generating billions of dollars in new revenue that can improve residents’ wellbeing.”
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