Arizona earned $23,168,229 in marijuana tax revenue in July, according to newly released data from the Department of Revenue.
The figure includes the state’s transaction privilege tax (TPT) on medical and adult-use sales as well as the 16% excise tax applied to recreational sales. Based on Arizona’s average effective combined marijuana tax rate, total retail marijuana sales for July are estimated at $113 million.
From January through July, the state has generated $169,349,815 in cannabis taxes. That equates to over $800 million in total marijuana sales so far in 2025.
Since Arizona launched legal adult-use marijuana sales in 2021, marijuana taxes have contributed $1,210,176,596 to state, local, and education funds.
Arizona voters legalized adult-use cannabis through Proposition 207 in November 2020. The law allows those 21 and older to possess up to one ounce of marijuana and cultivate up to six plants at home. Recreational marijuana sales began less than two months later, on January 22, 2021, when the first licensed dispensaries opened their doors to the general public. Medical marijuana, meanwhile, has been legal in Arizona since voters approved Proposition 203 in 2010.
