Maryland, December 23, 2025
Maryland has reported an impressive increase in cannabis tax revenue, collecting over $26.8 million in the third quarter of 2025. The figures represent a substantial climb from the previous quarter, highlighting the expanding cannabis market within the state. The collected revenue will support various funds including the General Fund, Maryland Cannabis Administration, and community initiatives aimed at areas affected by prior cannabis enforcement.
Maryland’s Cannabis Tax Revenue Reaches $26.8 Million in Q3 2025
Maryland has reported a significant increase in cannabis tax revenue, with over $26.8 million collected in the third quarter of 2025. This marks a substantial rise from the previous quarter, reflecting the state’s growing cannabis market.
Revenue Breakdown
The revenue distribution for this quarter is as follows:
- General Fund: $5,003,380
- Maryland Cannabis Administration: $10,150,520
- Community Reinvestment and Repair Fund (CRRF): $3,502,355
- Counties, Cannabis Public Health Fund, and Cannabis Business Assistance Fund: $500,338 each
The CRRF supports community-based initiatives in areas disproportionately impacted by prior cannabis enforcement.
Regional Contributions
The Central Region, encompassing Baltimore City and surrounding counties, led in revenue generation, contributing approximately $8 million. Other regions reported the following collections:
- Capital Region: $3,856,339
- Eastern Region: $2,165,779
- Southern Region: $831,090
- Western Region: $2,733,042
Tax Rate Increase
Effective July 1, 2025, the cannabis sales tax rate increased from 9% to 12%, as mandated by the Budget Reconciliation and Financing Act of 2025. The additional 3% is allocated to Maryland’s General Fund, enhancing state revenue.
Background
Maryland legalized adult-use cannabis on July 1, 2023. The state has experienced consistent growth in cannabis tax revenue, with collections surpassing $72 million in 2024. The recent tax rate increase aims to bolster state funding and support community initiatives.
Frequently Asked Questions (FAQ)
What is the total cannabis tax revenue collected in Maryland for the third quarter of 2025?
Maryland collected over $26.8 million in cannabis tax revenue during the third quarter of 2025.
How is the cannabis tax revenue distributed in Maryland?
The revenue is allocated as follows: $5,003,380 to the General Fund, $10,150,520 to the Maryland Cannabis Administration, $3,502,355 to the Community Reinvestment and Repair Fund (CRRF), and $500,338 each to counties, the Cannabis Public Health Fund, and the Cannabis Business Assistance Fund.
Which region in Maryland generated the most cannabis tax revenue in the third quarter of 2025?
The Central Region, including Baltimore City and surrounding counties, led in revenue generation, contributing approximately $8 million.
What is the current cannabis sales tax rate in Maryland?
As of July 1, 2025, the cannabis sales tax rate in Maryland increased from 9% to 12%, with the additional 3% allocated to the state’s General Fund.
When did Maryland legalize adult-use cannabis?
Maryland legalized adult-use cannabis on July 1, 2023.
Key Features of Maryland’s Cannabis Tax Revenue in Q3 2025
| Feature | Details |
|---|---|
| Total Revenue Collected | Over $26.8 million |
| General Fund Allocation | $5,003,380 |
| Maryland Cannabis Administration Allocation | $10,150,520 |
| Community Reinvestment and Repair Fund Allocation | $3,502,355 |
| Counties, Cannabis Public Health Fund, and Cannabis Business Assistance Fund Allocation | $500,338 each |
| Leading Revenue-Generating Region | Central Region (approximately $8 million) |
| Effective Date of Tax Rate Increase | July 1, 2025 |
| Previous Tax Rate | 9% |
| New Tax Rate | 12% |
| Legalization Date of Adult-Use Cannabis | July 1, 2023 |
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