Arizona collected nearly $150 million in marijuana-related taxes during the first six months of 2026, slightly exceeding collections during the same period last year. This is according to new data released today by the state’s Department of Revenue.
From January through June, total collections reached $149,549,586, an increase of approximately $3.37 million, or 2.3%, compared with $146,181,586 during the first half of 2025.
Monthly collections totaled $24.98 million in January, $25.25 million in February, $23.58 million in March, $23.56 million in April, $26.49 million in May and $25.69 million in June. May produced the highest monthly total of the period, while June collections were nearly 8% higher than in June 2025.
The state collected $93.18 million through its 16% adult-use marijuana excise tax, along with $49.89 million in adult-use transaction privilege taxes and $6.47 million in medical marijuana transaction privilege taxes.
Applying the state’s cannabis tax rate to the total collected indicates that licensed marijuana stores generated an estimated $658 million in combined sales during the six-month period.
Using the same method, sales during the first half of 2025 are estimated at approximately $655 million, indicating an increase of about 0.4%. The estimate uses the state’s 16% excise tax to calculate adult-use sales and adult-use tax collections to determine an average transaction privilege tax rate for estimating medical sales. Local tax rates and adjustments involving previous reporting periods can affect the estimate.
Arizona voters approved Proposition 207 in November 2020, legalizing recreational marijuana for adults 21 and older. The state’s first licensed recreational marijuana stores opened on Jan. 22, 2021. Adults may possess up to one ounce of marijuana, including no more than five grams of concentrate. Adult-use sales are subject to the 16% excise tax in addition to state and local transaction privilege taxes, while medical marijuana is subject to transaction privilege taxes but not the excise tax. Arizona’s statewide transaction privilege tax rate is 5.6%, with additional rates varying by county and city.
