According to data released today by the Arizona Department of Revenue, the state collected $24,202,343 in marijuana tax revenue in March, bringing the year’s total to over $75 million.
March’s revenue includes $4,076,644 from the state’s transaction privilege tax, which applies to both medical and adult-use marijuana sales, and $14,923,681 from the 16% excise tax levied specifically on recreational purchases. The remaining revenue comes from additional local taxes and fees.
March’s marijuana tax total is nearly identical to the $24,308,528 collected in March 2024, and is a modest increase over the $23,460,212 made in March 2023.
Despite the slight year-over-year dip, the $75,170,951 in marijuana taxes made in the first quarter of 2025 is above the $73,262,610 made during the same period in 2024.
Arizona’s all-time marijuana tax revenue passed the $1 billion mark in March, and now stands at $1,016,653,149.
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.
Under Arizona’s marijuana law, tax revenue is allocated as follows:
- 33% to Community College Districts
- 31.4% to Local Law Enforcement and Fire Departments
- 25.4% to the Arizona Highway User Revenue Fund
- 10% to the Justice Reinvestment Fund, supporting public safety, health, and drug treatment programs
- 0.2% to the Attorney General for enforcement costs
