Colorado has officially collected more than $3 billion in marijuana tax revenue, according to the latest data released by the Department of Revenue (DOR).
The milestone was reported in the agency’s August 21 update, which showed July sales alone brought in over $20.3 million in tax and fee revenue.
Since the state launched legal sales in February 2014, total marijuana tax collections have reached $3,012,831,657. For 2025 so far, Colorado has generated $139.3 million in marijuana-related tax revenue.
Marijuana sales in July added up to more than $112 million, slightly down from April’s $111.6 million, but still a substantial figure for the maturing industry. Year-to-date marijuana sales have totaled roughly $549 million, while cumulative sales since legalization stand at $17.45 billion.
The DOR report reflects taxes from multiple sources, including Colorado’s 2.9% state sales tax on marijuana sold in stores, the 15% retail marijuana sales tax, and the 15% wholesale excise tax applied to marijuana transfers. Fees from licenses and applications also contribute to the revenue totals.
Colorado remains one of the top states in the nation for marijuana-generated income, with funds helping to support schools, public health, and enforcement programs. With monthly revenues continuing to exceed $20 million, the state is on pace to add hundreds of millions more by the end of 2025.
Colorado divides its marijuana tax revenue among several key funds that support education, health programs, and local governments. The state collects a 15% retail sales tax, with 10% of that distributed directly to cities and counties based on where sales occur. Of the remaining amount, 71.85% is directed to the Marijuana Tax Cash Fund, which finances health care, substance abuse prevention and treatment, school health programs, and law enforcement.
Another 15.56% goes to the state’s General Fund to support education, human services, and other priorities, while 12.59% is dedicated to the State Public School Fund. In addition, Colorado levies a 15% wholesale excise tax on transfers of retail marijuana, which is fully allocated to the Building Excellent Schools Today (BEST) Fund. By law, the first $40 million collected each year from this tax must be used for school construction projects. In practice, about 37% of marijuana tax revenue goes to K–12 education, while roughly 20% supports the Department of Human Services, including behavioral health and addiction services. The remainder is spread across affordable housing grants, bullying prevention programs, mental health services, black market enforcement, pesticide regulation, and impaired driving prevention campaigns.
