Arizona Marijuana Tax Collections Hit Three-Year High in May, Top $123 Million So Far in 2026

Arizona marijuana tax collections reached $26.5 million in May, marking the state’s highest monthly total since May 2023.

According to data from the Arizona Department of Revenue, the state reported $26,487,451 in total marijuana tax collections in May. That includes $1,144,824 from medical marijuana transaction privilege tax collections, $9,295,134 from adult-use marijuana transaction privilege tax collections, $16,036,626 from the state’s marijuana excise tax and $10,867 in EFT payment fees.

May’s total is the highest since May 2023, when Arizona collected $28.4 million. It also represents a 6.8% increase from May 2025, when total collections were $24.8 million.

Through the first five months of 2026, Arizona has brought in $123,855,352 in total marijuana tax collections. This includes $5.4 million from medical marijuana transaction privilege tax collections, $41.7 million from adult-use transaction privilege tax collections and $76.7 million from the state’s marijuana excise tax.

Arizona voters legalized marijuana for adult use in November 2020 by approving Proposition 207. The state’s first legal recreational marijuana stores opened on January 22, 2021. Under the law, adults 21 and older may possess up to one ounce of marijuana, including up to five grams of marijuana concentrate. Adults may also cultivate up to six plants at home, with a maximum of 12 plants allowed in households with two or more adults.

Adult-use marijuana sales in Arizona are subject to the state’s standard transaction privilege tax, along with local taxes, and an additional 16% marijuana excise tax. Medical marijuana sales are subject to transaction privilege taxes but not the 16% adult-use excise tax.

Since legal adult-use sales began, Arizona has collected more than $1.44 billion in total marijuana taxes, according to the Department of Revenue.

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