ANNAPOLIS, Md. (December 22, 2025) — The Maryland Office of the Comptroller today announced that the State of Maryland collected more than $26.8 million in cannabis sales tax revenue between July and September 2025, with the largest share of revenue generated in Maryland’s Central Region, which includes Baltimore City, as well as Anne Arundel, Baltimore, Carroll, Harford, and Howard counties.
State law requires the Comptroller of Maryland to collect sales and use tax revenue generated from the retail sale of adult-use cannabis in the state.
|
Region |
Revenue Collected |
|
Capital |
$6,513,870 |
|
Central |
$10,796,928 |
|
Eastern |
$3,618,113 |
|
Southern |
$1,597,526 |
|
Western |
$4,349,937 |
|
Total |
$26,876,374 |
On July 1, 2025, the sales and use tax for cannabis increased from 9% to 12%, in accordance with the Budget Reconciliation and Financing Act of 2025. The additional 3% is allocated to Maryland’s General Fund, before additional allocations are made, as outlined in the Cannabis Reform Act of 2023. An estimated $11.7 million in revenue will go to the General Fund for this period.
The allocations for July through September are as follows:
General Fund (Initial 3% Distribution): $6,719,093
Maryland Cannabis Administration: $10,150,520
Community Reinvestment and Repair Fund (CRRF): $3,502,366
35% of quarterly revenues fund community-based initiatives serving areas disproportionately impacted by the enforcement of cannabis prohibition prior to July 1, 2022. Funds from the CRRF will be distributed to each county based on percentages formulated by the Office of Social Equity.
Maryland Counties: $500,338
5% of quarterly revenue is allocated to Maryland counties based on the percentage of revenue collected from that county. Counties will then distribute 50% of funds to municipalities with cannabis dispensaries that contribute to sales and use tax revenue.
Cannabis Public Health Fund: $500,338
5% of quarterly revenues will be distributed to the Cannabis Public Health Fund to address the health effects associated with the legalization of adult-use cannabis.
Cannabis Business Assistance Fund: $500,338
5% of quarterly revenues will be distributed to the Cannabis Business Assistance Fund through FY 2028 to assist small, minority-owned, and women-owned businesses entering the adult-use cannabis industry.
Net to General Fund (After Required Disbursements): $5,003,380
The Office of the Comptroller releases quarterly reports on the tax revenue generated from cannabis sales in the state that are available at https://www.marylandcomptroller.gov/reports.html.
The Maryland Cannabis Administration has developed information and resources for responsible adult cannabis use, which can be found at: cannabis.maryland.gov/Pages/BeCannabisSmart.
