The Maryland Comptroller’s Office announced that the state collected over $17.5 million in adult-use cannabis sales tax revenue from January to March 2025, with the Central Region generating the highest share. A portion of the revenue is allocated to community reinvestment, public health, business assistance, and counties, with the remainder—over $5.3 million—directed to the state’s General Fund.
Per the news release: “
The Maryland Office of the Comptroller
today
announced that the State of Maryland
collected
more than $1
7
.5
million in cannabis
sales tax revenue between January and March 2025
, with the largest share of revenue generated in Maryland’s Central Region, which includes Baltimore City, as well as Anne Arundel, Baltimore, Carroll, Harford, and Howard counties.
Adult-use cannabis and cannabis products are taxed at a rate of
9%.
Beginning July 1, the tax rate will increase to 12% as passed by the General Assembly during the
2025 legislative session
. The additional 3% will be allocated to the state’s general fund.
Under state law, the Comptroller of Maryland
is responsible for
collecting sales and use tax revenue generated from the retail sale of adult-use
cannabis in the state
.
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Region
Revenue Collected
Capital
$3,856,339
Central
$7,923,856
Eastern
$2,165,779
Southern
$831,090
Western
$2,733,042
Total
$17,510,109
Th
e
Cannabis Reform Act of 2023
allows for
an allocation of funding to
the
Maryland Cannabis Administration
to
cover operations
and administrative expenses,
which is
$6,780,090
for this quarter. R
evenue
from adult-use cannabis is
then
distributed to
the following
funds as required by the
Cannabis Reform Act:
Community Reinvestment and Repair Fund (CRRF): $
3,755,506
35% of quarterly revenues fund community-based initiatives serving areas
disproportionately
impacted
by the enforcement of cannabis prohibition prior to July
1, 2022. Funds from the CRRF will be distributed to each county based o
n
percentages formulated by the Office of Social Equity.
Maryland Counties: $536,500
5% of quarterly revenue is
allocated
to Maryland counties based on the percentage
of revenue collected from that county. Counties will then distribute 50% of funds to
municipalities with cannabis dispensaries that contribute to sales and use tax
revenue.
Cannabis Public Health Fund: $
536,500
5% of quarterly revenues will be distributed to the Cannabis Public Health Fund to
address the health effects associated with the legalization of adult-use cannabis.
Cannabis Business Assistance Fund: $
536,500
5% of quarterly revenues will be distributed to the Cannabis Business Assistance
Fund through FY 2028 to
assist
small, minority-owned, and women-owned businesses entering the adult-use
cannabis industry.
General Fund:
$5,365,009
The
remainder
of quarterly revenues, after required disbursements, will be
allocated
to Maryland’s General Fund.
The Office of the Comptroller releases quarterly reports on the tax revenue
generated from cannabis sales in the state. Those reports are available
at
https://www.marylandcomptroller.gov/cannabis/tax-reports.html
The Maryland Cannabis Administration has developed information and resources for responsible adult cannabis use, which can be found at:
https://cannabis.maryland.gov/Pages/BeCannabisSmart.aspx”
