Maryland cannabis sales generate more than $18 million in tax revenue

Maryland cannabis sales generated about $18.4 million in tax revenue during the third quarter of the 2025 fiscal year, the Maryland Comptroller's Office said Thursday.

The tax rate rose from 9% to 12% on July 1, 2025, with the additional 3% directed to Maryland's General Fund.

Of the total tax revenue, $8.6 million will be distributed across various state funds. That includes $3 million for the state's Community Reinvestment and Repair Fund.

Counties and municipalities will each receive $429,085, as will the Cannabis Public Health Fund. Another $429,085 is designated for the business assistance fund.

Maryland cannabis legalization

Recreational cannabis became legal in Maryland on July 1, 2023.

With a high sales volume driving growth, the state reported more than $14 million in cannabis tax revenue in the first three months of 2024.

Maryland also became the first state to open a cannabis licensing round exclusively for qualifying social equity applicants across all license types, aiming to expand opportunities in communities disproportionately affected by prohibition.

In June 2024, Gov. Wes Moore pardoned more than 175,000 marijuana convictions through an executive order.

More than 150,000 were misdemeanors for simple possession of cannabis, while about 18,000 were for use or possession with intent to use drug paraphernalia.

Public health concerns

Data from Maryland's Cannabis Public Health Data Dashboard shows that since legalization, youth cannabis use has decreased, but cannabis-related emergency room visits have increased among adults ages 20 to 29.

In March, a Maryland doctor told WJZ that hospitals are seeing more cases of cannabis hyperemesis syndrome, a severe condition caused by long-term use of high concentrations of cannabinoids. Symptoms include cyclic vomiting, stomach pain, migraines, nausea and diarrhea.