Arizona: $26 Million in Marijuana Taxes Garnered in January 2025, Most Since January 2024

Arizona’s marijuana industry generated over $26 million in tax revenue in January.

There was $26,010,976 in tax revenue generated from licensed marijuana sales in January, according to the Arizona Department of Revenue. This is a notable increase over the $23.3 million garnered in December and the $23.7 million in November. January’s taxes brings the all-time total to $1,066,837,757.

In January, $16,770,312 of the taxes made came from the state’s 16% recreational marijuana excise tax, $7,696,300 from the 5.6% adult-use tax, and $1,533,049 from medical marijuana tax revenue. January marked the 38th consecutive month of marijuana tax revenue exceeding $20 million.

Arizona voters approved recreational marijuana legalization in November 2020. The law allows those 21 and older to purchase up to one ounce of marijuana and up to five grams of concentrates from licensed dispensaries. Since legalization, the tax revenue has been used to benefit various programs:

  • 33% allocated to Community College Districts
  • 31.4% directed to Local Law Enforcement and Fire Departments
  • 25.4% dedicated to the Arizona Highway User Revenue Fund
  • 10% to the Justice Reinvestment Fund, supporting public safety, health, and drug treatment programs
  • 0.2% reserved for the Attorney General for enforcement costs
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