Maryland Generates $72 Million in 2024 Recreational Cannabis Tax Revenue

LOS ANGELES- In 2024, Maryland collected over $72 million in sales tax revenue from recreational cannabis, as reported by state Comptroller Brooke Lierman. The state imposes a 9% sales tax on adult-use cannabis products, aligning with the tax rate applied to alcoholic beverages.​

The quarterly breakdown of the 2024 cannabis tax revenue is as follows:

• First Quarter (January – March): $14.7 million​
• Second Quarter (April – June): $22.4 million​
• Third Quarter (July – September): $18.3 million​
• Fourth Quarter (October – December): $17.6 million​

The Central Region, encompassing Baltimore City and the counties of Anne Arundel, Baltimore, Carroll, Harford, and Howard, consistently led in revenue generation, contributing $8.2 million in the fourth quarter alone. ​

The allocation of the cannabis tax revenue is structured as follows:​

• Maryland Cannabis Administration: Receives funds to cover operating expenses.​
• Community Reinvestment and Repair Fund (CRRF): Allocated 35% of quarterly revenues to support community-based initiatives in areas disproportionately affected by previous cannabis prohibition.​
• Maryland Counties: Receive 5% of quarterly revenue, distributed based on the percentage of revenue collected from each county.​
• Cannabis Public Health Fund: Allocated 5% of quarterly revenues to address health effects associated with the legalization of adult-use cannabis.​
• Cannabis Business Assistance Fund: Receives 5% of quarterly revenues through fiscal year 2028 to assist small, minority-owned, and women-owned businesses entering the adult-use cannabis industry.​
• General Fund: The remainder of the quarterly revenues is allocated to Maryland’s General Fund.