How Much States Make From Marijuana Tax Revenue

Jordan Rosenfeld
Hand holding a paper sheet with marijuana leaf symbol over a crowded street background.
Hand holding a paper sheet with marijuana leaf symbol over a crowded street background.

Marijuana has come a long way from its status as an illicit substance to now being recognized for its medical and recreational purposes in many states. Nine states have fully legalized it, and more are considering it. With legalization, the states now have the ability to bring immense revenues, as well.

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To determine just how much tax revenue states are or could receive from the legal sale of marijuana, GOBankingRates looked at Tax Foundation’s data in their article titled “Several States Considering Legal Recreational Marijuana.” Find out how much these states are bringing in.

Last updated: April 16, 2021

Mobile, Alabama Skyline from Cooper Riverside Park.
Mobile, Alabama Skyline from Cooper Riverside Park.

Alabama

  • Potential revenue: $92,217,856

  • Actual revenue: N/A

  • 5-year potential revenues: $461,089,280

  • % actual revenue made on potential revenue: N/A

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Seward , Alaska , Small Boat Harbor - Image.
Seward , Alaska , Small Boat Harbor - Image.

Alaska

  • Potential revenue: $28,258,632

  • Actual revenue: $24,540,009

  • 5-year potential revenues: $141,293,160

  • % actual revenue made on potential revenue: 86.84%

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Telephoto looking East up Congress to downtown.
Telephoto looking East up Congress to downtown.

Arizona

  • Potential revenue: $183,169,705

  • Actual revenue: N/A

  • 5-year potential revenues: $915,848,525

  • % actual revenue made on potential revenue: N/A

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"Skyline of Little Rock, Arkansas, with Arkansas River full of boats in foreground.
"Skyline of Little Rock, Arkansas, with Arkansas River full of boats in foreground.

Arkansas

  • Potential revenue: $59,314,764

  • Actual revenue: N/A

  • 5-year potential revenues: $296,573,820

  • % actual revenue made on potential revenue: N/A

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Aerial view of Harbor Drive flanked by highrise hotels and condominiums to the right and the San Diego Convention Center, home to Comic Con, to the left.
Aerial view of Harbor Drive flanked by highrise hotels and condominiums to the right and the San Diego Convention Center, home to Comic Con, to the left.

California

  • Potential revenue: $1,086,253,401

  • Actual revenue: $474,100,000

  • 5-year potential revenues: $5,431,267,005

  • % actual revenue made on potential revenue: 43.65%

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Denver, USA - A panoramic image showing the tracks of Denver's Union Station partially covered by the canopy architecture.
Denver, USA - A panoramic image showing the tracks of Denver's Union Station partially covered by the canopy architecture.

Colorado

  • Potential revenue: $230,239,177

  • Actual revenue: 307,278,327

  • 5-year potential revenues: $1,151,195,885

  • % actual revenue made on potential revenue: 133.46%

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this beautiful tower sits on the Talcott mountain state park in Simsbury ct.
this beautiful tower sits on the Talcott mountain state park in Simsbury ct.

Connecticut

  • Potential revenue: $97,696,550

  • Actual revenue: N/A

  • 5-year potential revenues: $488,482,750

  • % actual revenue made on potential revenue: N/A

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Delaware Bridge
Delaware Bridge

Delaware

  • Potential revenue: $24,566,974

  • Actual revenue: N/A

  • 5-year potential revenues: $122,834,870

  • % actual revenue made on potential revenue: N/A

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Orlando, Florida, USA downtown cityscape over the highway.
Orlando, Florida, USA downtown cityscape over the highway.

Florida

  • Potential revenue: $448,740,070

  • Actual revenue: N/A

  • 5-year potential revenues: $2,243,700,350

  • % actual revenue made on potential revenue: N/A

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A view of the Midtown Atlanta skyline from Piedmont Park during the fall season.
A view of the Midtown Atlanta skyline from Piedmont Park during the fall season.

Georgia

  • Potential revenue: $198,400,771

  • Actual revenue: N/A

  • 5-year potential revenues: $992,003,855

  • % actual revenue made on potential revenue: N/A

Waikiki, Hawaii, USA - January 5, 2014: People jogging, cycling and walking along Waikiki Beach.
Waikiki, Hawaii, USA - January 5, 2014: People jogging, cycling and walking along Waikiki Beach.

Hawaii

  • Potential revenue: $28,453,985

  • Actual revenue: N/A

  • 5-year potential revenues: $142,269,9255

  • % actual revenue made on potential revenue: N/A

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View of Downtown Boise.
View of Downtown Boise.

Idaho

  • Potential revenue: $33,295,445

  • Actual revenue: N/A

  • 5-year potential revenues: $166,477,225

  • % actual revenue made on potential revenue: N/A

Downtown Chicago Skyscraper Cityscape along the Chicago River.
Downtown Chicago Skyscraper Cityscape along the Chicago River.

Illinois

  • Potential revenue: $277,576,356

  • Actual revenue: $34,700,000

  • 5-year potential revenues: $1,387,881,780

  • % actual revenue made on potential revenue: 12.50%

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Indianapolis, Indiana, USA skyline over Monument Circle.
Indianapolis, Indiana, USA skyline over Monument Circle.

Indiana

  • Potential revenue: $157,009,061

  • Actual revenue: N/A

  • 5-year potential revenues: $785,045,305

  • % actual revenue made on potential revenue: N/A

Des Moines, Iowa skyline from the state capital at sunset.
Des Moines, Iowa skyline from the state capital at sunset.

Iowa

  • Potential revenue: $50,183,462

  • Actual revenue: N/A

  • 5-year potential revenues: $250,917,310

  • % actual revenue made on potential revenue: N/A

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Wichita city skyline.
Wichita city skyline.

Kansas

  • Potential revenue: $42,058,743

  • Actual revenue: N/A

  • 5-year potential revenues: $210,293,715

  • % actual revenue made on potential revenue: N/A

Overlooking the Paducah Kentucky Riverfront of the Ohio River.
Overlooking the Paducah Kentucky Riverfront of the Ohio River.

Kentucky

  • Potential revenue: $83,008,154

  • Actual revenue: N/A

  • 5-year potential revenues: $415,040,770

  • % actual revenue made on potential revenue: N/A

Bossier City, LA, USA- May 23, 2016: The downtown skyline of Shreveport, Louisiana as viewed from the Louisiana Boardwalk in Bossier City.
Bossier City, LA, USA- May 23, 2016: The downtown skyline of Shreveport, Louisiana as viewed from the Louisiana Boardwalk in Bossier City.

Louisana

  • Potential revenue: $81,616,779

  • Actual revenue: N/A

  • 5-year potential revenues: $408,083,895

  • % actual revenue made on potential revenue: N/A

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BAR HARBOR-OCT 17: Bar Harbor architecture in downtown near Frenchman Bay in Maine, USA on October 17, 2015.
BAR HARBOR-OCT 17: Bar Harbor architecture in downtown near Frenchman Bay in Maine, USA on October 17, 2015.

Maine

  • Potential revenue: $50,685,850

  • Actual revenue: N/A

  • 5-year potential revenues: $253,429,250

  • % actual revenue made on potential revenue: N/A

Gaithersburg, Maryland, USA - November 2, 2016: Daytime view of the Gaithersburg skyline reflecting on a pond along the Washingtonian waterfront.
Gaithersburg, Maryland, USA - November 2, 2016: Daytime view of the Gaithersburg skyline reflecting on a pond along the Washingtonian waterfront.

Maryland

  • Potential revenue: $135,837,117

  • Actual revenue: N/A

  • 5-year potential revenues: $679,185,585

  • % actual revenue made on potential revenue: N/A

View of fishtown in Leland, Michigan at sunset.
View of fishtown in Leland, Michigan at sunset.

Michigan

  • Potential revenue: $288,183,493

  • Actual revenue: $9,692,684

  • 5-year potential revenues: $1,440,917,465

  • % actual revenue made on potential revenue: 3.36%

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Boston, Massachusetts, at the USA Old State House and cityscape at dawn.
Boston, Massachusetts, at the USA Old State House and cityscape at dawn.

Massachusetts

  • Potential revenue: $214,347,227

  • Actual revenue: 51,680,000

  • 5-year potential revenues: $1,071,736,135

  • % actual revenue made on potential revenue: 24.11%

MINNEAPOLIS, MN - APRIL 2020 - "HOPE" is Spelled Using Illuminated Hotel Windows in Quiet Downtown Minneapolis While Corona Virus Stay at Home Orders are in Place.
MINNEAPOLIS, MN - APRIL 2020 - "HOPE" is Spelled Using Illuminated Hotel Windows in Quiet Downtown Minneapolis While Corona Virus Stay at Home Orders are in Place.

Minnesota

  • Potential revenue: $122,072,389

  • Actual revenue: N/A

  • 5-year potential revenues: $610,361,945

  • % actual revenue made on potential revenue: N/A

Mississippi River bridge, at Vicksburg, MS.
Mississippi River bridge, at Vicksburg, MS.

Mississippi

  • Potential revenue: $47,304,242

  • Actual revenue: N/A

  • 5-year potential revenues: $236,521,210

  • % actual revenue made on potential revenue: N/A

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Cape Girardeau is a City on the Mississippi River and border between Missouri and Kentucky.
Cape Girardeau is a City on the Mississippi River and border between Missouri and Kentucky.

Missouri

  • Potential revenue: $119,222,374

  • Actual revenue: N/A

  • 5-year potential revenues: $596,111,870

  • % actual revenue made on potential revenue: N/A

Aerial View of Main Street in downtown Bozeman Montana.
Aerial View of Main Street in downtown Bozeman Montana.

Montana

  • Potential revenue: $35,142,502

  • Actual revenue: N/A

  • 5-year potential revenues: $175,712,510

  • % actual revenue made on potential revenue: N/A

Sunrise over Omaha, NE on a winter morning.
Sunrise over Omaha, NE on a winter morning.

Nebraska

  • Potential revenue: $35,142,502

  • Actual revenue: N/A

  • 5-year potential revenues: $35,975,930

  • % actual revenue made on potential revenue: N/A

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Las Vegas, MAR 25, 2020 - Dusk special lockdown cityscape of the famous Strip and New York New York Hotel & Casino.
Las Vegas, MAR 25, 2020 - Dusk special lockdown cityscape of the famous Strip and New York New York Hotel & Casino.

Nevada

  • Potential revenue: $106,255,348

  • Actual revenue: $105,180,947

  • 5-year potential revenues: $531,276,740

  • % actual revenue made on potential revenue: 98.99%

Rochester is a city in Strafford County, New Hampshire, United States.
Rochester is a city in Strafford County, New Hampshire, United States.

New Hampshire

  • Potential revenue: $44,163,575

  • Actual revenue: N/A

  • 5-year potential revenues: $220,817,875

  • % actual revenue made on potential revenue: N/A

Elizabeth is a city in Union County, New Jersey, United States.
Elizabeth is a city in Union County, New Jersey, United States.

New Jersey

  • Potential revenue: $158,974,353

  • Actual revenue: N/A

  • 5-year potential revenues: $794,871,765

  • % actual revenue made on potential revenue: N/A

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Santa Fe, New Mexico, USA downtown skyline at dusk.
Santa Fe, New Mexico, USA downtown skyline at dusk.

New Mexico

  • Potential revenue: $61,692,434

  • Actual revenue: N/A

  • 5-year potential revenues: $308,462,170

  • % actual revenue made on potential revenue: N/A

New York

  • Potential revenue: $431,141,823

  • Actual revenue: N/A

  • 5-year potential revenues: $2,155,709,115

  • % actual revenue made on potential revenue: N/A

Downtown Winston-Salem, North Carolina.
Downtown Winston-Salem, North Carolina.

North Carolina

  • Potential revenue: $182,947,622

  • Actual revenue: N/A

  • 5-year potential revenues: $914,738,110

  • % actual revenue made on potential revenue: N/A

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Fargo, North Dakota, USA - Sep 27, 2014: The economically vibrant downtown of Fargo North Dakota, lined with retail shops and entertainment businesses.
Fargo, North Dakota, USA - Sep 27, 2014: The economically vibrant downtown of Fargo North Dakota, lined with retail shops and entertainment businesses.

North Dakota

  • Potential revenue: $13,231,599

  • Actual revenue: N/A

  • 5-year potential revenues: $66,157,995

  • % actual revenue made on potential revenue: N/A

Akron, Ohio, USA downtown skyline at dusk.
Akron, Ohio, USA downtown skyline at dusk.

Ohio

  • Potential revenue: $220,827,478

  • Actual revenue: N/A

  • 5-year potential revenues: $1,104,137,390

  • % actual revenue made on potential revenue: N/A

Oklahoma City, Oklahoma, USA downtown skyline at twilight.
Oklahoma City, Oklahoma, USA downtown skyline at twilight.

Oklahoma

  • Potential revenue: $67,680,000

  • Actual revenue: N/A

  • 5-year potential revenues: $338,400,000

  • % actual revenue made on potential revenue: N/A

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Hood River, Oregon at sunset.
Hood River, Oregon at sunset.

Oregon

  • Potential revenue: $182,845,089

  • Actual revenue: $133,150,349

  • 5-year potential revenues: $914,225,445

  • % actual revenue made on potential revenue: 72.82%

Sunset over downtown Center City, Philadelphia, PA.
Sunset over downtown Center City, Philadelphia, PA.

Pennsylvania

  • Potential revenue: $244,553,615

  • Actual revenue: N/A

  • 5-year potential revenues: $1,222,768,075

  • % actual revenue made on potential revenue: N/A

Downtown Providence, Rhode Island at night.
Downtown Providence, Rhode Island at night.

Rhode Island

  • Potential revenue: $35,455,500

  • Actual revenue: N/A

  • 5-year potential revenues: $177,277,500

  • % actual revenue made on potential revenue: N/A

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Historical downtown area of Charleston, South Carolina, USA.
Historical downtown area of Charleston, South Carolina, USA.

South Carolina

  • Potential revenue: $96,680,914

  • Actual revenue: N/A

  • 5-year potential revenues: $483,404,570

  • % actual revenue made on potential revenue: N/A

Rapid City, South Dakota, USA - May 3, 2019: Daytime view of Main Street Square in the Heart of Downtown Rapid City.
Rapid City, South Dakota, USA - May 3, 2019: Daytime view of Main Street Square in the Heart of Downtown Rapid City.

South Dakota

  • Potential revenue: $14,270,281

  • Actual revenue: N/A

  • 5-year potential revenues: $71,351,405

  • % actual revenue made on potential revenue: N/A

Nashville, Tennessee, USA skyline and riverboat on the Cumberland River at night.
Nashville, Tennessee, USA skyline and riverboat on the Cumberland River at night.

Tennessee

  • Potential revenue: $132,509,552

  • Actual revenue: N/A

  • 5-year potential revenues: $662,547,760

  • % actual revenue made on potential revenue: N/A

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Amarillo is the 14th-most populous city in the state of Texas, United States.
Amarillo is the 14th-most populous city in the state of Texas, United States.

Texas

  • Potential revenue: $397,424,206

  • Actual revenue: N/A

  • 5-year potential revenues: $1,987,121,030

  • % actual revenue made on potential revenue: N/A

Salt Lake City is the capital and the most populous municipality of the U.
Salt Lake City is the capital and the most populous municipality of the U.

Utah

  • Potential revenue: $44,428,908

  • Actual revenue: N/A

  • 5-year potential revenues: $222,144,540

  • % actual revenue made on potential revenue: N/A

Brattleboro, Vermont, USA - October 19, 2018: Morning view of Main Street in the most populous municipality abutting Vermont's eastern border with New Hampshire.
Brattleboro, Vermont, USA - October 19, 2018: Morning view of Main Street in the most populous municipality abutting Vermont's eastern border with New Hampshire.

Vermont

  • Potential revenue: $27,313,974

  • Actual revenue: N/A

  • 5-year potential revenues: $136,569,870

  • % actual revenue made on potential revenue: N/A

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"Virginia Beach is a resort city with miles of beaches and hundreds of hotels, motels, and restaurants along its oceanfrontMore Virginia Beach Images".
"Virginia Beach is a resort city with miles of beaches and hundreds of hotels, motels, and restaurants along its oceanfrontMore Virginia Beach Images".

Virginia

  • Potential revenue: $139,977,848

  • Actual revenue: N/A

  • 5-year potential revenues: $699,889,240

  • % actual revenue made on potential revenue: N/A

Seattle Central Public Library in Seattle Washington
Seattle Central Public Library in Seattle Washington

Washington

  • Potential revenue: $285,674,135

  • Actual revenue: $469,200,000

  • 5-year potential revenues: $1,428,370,675

  • % actual revenue made on potential revenue: 164.24%

Charleston, West Virginia, USA skyline on the Kanawha River at dusk.
Charleston, West Virginia, USA skyline on the Kanawha River at dusk.

West Virginia

  • Potential revenue: $38,327,540

  • Actual revenue: N/A

  • 5-year potential revenues: $191,637,700

  • % actual revenue made on potential revenue: N/A

Green Bay Wisconsin
Green Bay Wisconsin

Wisconsin

  • Potential revenue: $117,791,078

  • Actual revenue: N/A

  • 5-year potential revenues: $588,955,390

  • % actual revenue made on potential revenue: N/A

Panoramic aerial view of Jackson Hole homes and beautiful mountains on a summer morning, Wyoming.
Panoramic aerial view of Jackson Hole homes and beautiful mountains on a summer morning, Wyoming.

Wyoming

  • Potential revenue: $10,054,045

  • Actual revenue: N/A

  • 5-year potential revenues: $50,270,225

  • % actual revenue made on potential revenue: N/A

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Methodology: For this piece GOBankingRates looked at Tax Foundation’s data in their article titled “Several States Considering Legal Recreational Marijuana”. With this data, GOBankingRates found for all 50 states the (1) potential revenue from recreational marijuana taxes and (2) the 5-year potential revenues from recreational marijuana taxes. Then, for the nine states where marijuana is already fully legal and regulated, GOBankingRates found the (3) actual (FY 2020) tax revenues from recreational marijuana and (4) percent the actual revenue made when compared to the state’s potential revenue. All data was collected on and up to date as of April 1, 2021.

This article originally appeared on GOBankingRates.com: How Much States Make From Marijuana Tax Revenue

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