ANNAPOLIS, Md. – The Maryland Office of the Comptroller reported on September 5, 2025, that the state collected $18,371,784 in cannabis sales tax revenue from April to June 2025, driven by robust sales in the Central Region, encompassing Baltimore City, Anne Arundel, Baltimore, Carroll, Harford, and Howard counties. This marks a significant contribution to state and local funds, though it reflects a slight decline from the $22.3 million collected in the previous quarter. The Central Region led with $8,044,062, followed by the Capital Region at $4,122,301, Western Region at $2,910,164, Eastern Region at $2,381,912, and Southern Region at $913,345.
Under state law, the Comptroller’s Office oversees the collection of sales and use tax from adult-use cannabis, which was taxed at 9% during the reported period. A key change took effect on July 1, 2025, when the tax rate increased to 12% per the Budget Reconciliation and Financing Act of 2025. This additional 3% will bolster Maryland’s General Fund, with the impact to be detailed in the next quarterly report covering July to September 2025. The revenue supports a range of initiatives outlined in the Cannabis Reform Act of 2023, which legalized recreational cannabis use for adults over 21.
Of the $18.4 million collected, $9,790,089 was allocated to the Maryland Cannabis Administration to cover operational and administrative expenses. The remaining funds were distributed as follows: $3,003,593 (35%) to the Community Reinvestment and Repair Fund (CRRF), which supports community-based initiatives in areas disproportionately affected by cannabis prohibition before July 1, 2022; $429,085 (5%) to Maryland counties, with half redistributed to municipalities hosting dispensaries; $429,085 (5%) to the Cannabis Public Health Fund to address health effects of legalization; and $429,085 (5%) to the Cannabis Business Assistance Fund to aid small, minority-owned, and women-owned businesses in the cannabis industry through fiscal year 2028. The General Fund received the remaining $4,290,847.
The CRRF allocation, guided by the Office of Social Equity, prioritizes communities impacted by past cannabis enforcement, with funds distributed to counties based on specific percentages. The county allocation, while modest, supports local governments managing zoning, public safety, and health responsibilities tied to cannabis businesses. However, some counties have noted that the 5% share—equating to roughly 60 cents per $100 in sales after municipal distribution—limits their ability to address these demands effectively. The Public Health Fund addresses rising concerns, as emergency department visits linked to cannabis use averaged 817 per month in 2025, a 4.8% increase from the prior year.
The Cannabis Business Assistance Fund continues to foster equity in the industry, with 174 social equity licenses awarded in March 2025 to small businesses, particularly those owned by women and minorities. Detailed quarterly reports are available at https://marylandtaxes.gov/cannabis/reports.php, and resources for responsible cannabis use can be found at https://cannabis.maryland.gov/Pages/BeCannabisSmart.aspx. As Maryland’s cannabis market matures, these revenues play a critical role in balancing economic growth with social and health priorities.
