Arizona’s legal marijuana market sold over $90 million worth of product, resulting in nearly $24 million in tax revenue.
Data from the Arizona Department of Revenue shows that the state collected $23,894,565 in taxes from approximately $91 million in licensed marijuana sales.
Arizona’s year-to-date marijuana tax revenue now totals $169,866,457. For fiscal year (FY) 2024, which ended on June 30, the state earned $289,879,253, surpassing the $283,179,058 collected in FY 2023. In FY 2022, the revenue was $255,997,918.
Total marijuana tax revenue since legalization is now around $925 million.
Recreational consumers made up nearly 80% of total marijuana sales in 2024.
In Arizona, marijuana legalization was achieved through a citizen’s initiative in 2020. The law allows individuals aged 21 and older to buy and possess up to one ounce of marijuana and up to five grams of marijuana concentrates. The state applies a 5.6% transaction privilege tax on both medical and recreational marijuana, along with an additional 16% excise tax on recreational sales.
Marijuana tax revenue is distributed as follows:
- 33% – Community College Districts.
- 31.4% – Local Law Enforcement and Fire Departments.
- 25.4% – Arizona Highway User Revenue Fund.
- 10% – Justice Reinvestment Fund (for public safety, public health, and drug treatment programs).
- 0.2% – Attorney General for enforcement costs.
For more detailed information on marijuana sales and tax revenue in Arizona, click here.
