Arizona has collected more than $173 million in marijuana-related taxes through the first seven months of 2026, putting the state modestly ahead of the amount generated during the same period last year.
According to newly updated data from the Arizona Department of Revenue, marijuana tax collections totaled $23,902,742 in July, bringing the January-through-July total to $173,452,328. The state defines “Total Collections” as state, county, city and education transaction privilege tax collections, along with the marijuana excise tax.
During the same seven-month period in 2025, Arizona collected $169,349,815, meaning collections so far this year are up approximately $4.1 million, or 2.4%. Monthly collections from January through July 2025 ranged from about $22.4 million to $26 million.
July’s $23.9 million included approximately $14.99 million from the state’s marijuana excise tax and $9.47 million in adult-use marijuana transaction privilege tax collections. Medical marijuana collections were negative for the month at roughly -$556,500, reflecting adjustments in reported collections.
For the first seven months of 2026, adult-use transaction privilege tax collections totaled about $59.4 million, while the 16% marijuana excise tax generated approximately $108.2 million. Medical marijuana collections accounted for roughly $5.9 million.
Arizona voters legalized recreational marijuana in November 2020 through Proposition 207, and the state’s first legal adult-use marijuana stores opened on January 22, 2021. Adults 21 and older may possess up to one ounce of marijuana, including no more than five grams of marijuana concentrate.
Adult-use marijuana purchases are subject to Arizona’s regular transaction privilege tax, including a 5.6% state rate, as well as a separate 16% excise tax established under Proposition 207. Medical marijuana is subject to transaction privilege taxes but not the 16% recreational excise tax.
Since legal recreational sales began, Arizona has collected nearly $1.5 billion in marijuana-related taxes across the categories included in the Department of Revenue’s report.
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