The U.S. Census Bureau's latest update to its Cannabis Excise Sales Tax Collections data shows legal-marijuana states have accumulated more than $14.8 billion in cannabis tax revenue since the agency began tracking collections in the third quarter of 2021.
In Q1 2026, states reported $825.1 million—down from $878.1 million in Q4 2025.
California led Q1 2026 with $151.9 million, followed by Washington State ($98.9 million), Michigan ($72.5 million), New York ($69.6 million), Illinois ($64.9 million), and Colorado ($53.3 million).
Over the full tracking period since late 2021, California's $3.1 billion accounts for more than a fifth of all state cannabis revenue nationwide. Washington State ranks second at $2.1 billion, followed by Illinois ($1.3 billion), Colorado ($1.3 billion), Michigan ($1.2 billion), Massachusetts ($831.5 million), and Oregon ($777.7 million).
The bureau's figures lag the real market; the agency notes its data is "based on a calendar quarter and generally represent taxes collected on sales made during the prior quarter (i.e. data released in September 2023 will cover sales during the quarter ended June 30, 2023)." Nevada submitted no Q1 2026 data despite reporting in earlier quarters, and not all legal-marijuana states contribute consistently.
The bureau defines "taxes" to include "all compulsory contributions exacted by a government for public purposes," covering penalty and interest receipts but excluding protested amounts. It tracks cannabis transactions and business license fees under separate codes and cautions its totals may not match state-reported figures because its definition of "state government" extends to agencies, institutions, commissions, and public authorities.
A separate June 2026 report by the Marijuana Policy Project put total recreational cannabis tax revenue at more than $28.4 billion since the first markets launched over a decade ago, though that figure excludes medical marijuana sales and licensing fees.
Also this month, an analysis by Vangst and Whitney Economics found that 2025 marked the first year-over-year decline in national cannabis revenue since recreational markets launched in 2014. Cannabis remains broadly federally illegal, though the Trump administration's rescheduling effort is partially altering that status.
