ANNAPOLIS — The Maryland Office of the Comptroller has reported that the state collected $26.2 million in cannabis sales tax revenue between January and March 2026.
Maryland law imposes a 12% sales and use tax on retail sales of adult-use cannabis and cannabis products. On July 1, 2025, the tax rate increased from 9% to 12% under the Budget Reconciliation and Financing Act of 2025, with the additional 3% allocated to the state’s General Fund before further distributions under the Cannabis Reform Act of 2023.
A regional breakdown of the revenue shows:
- Capital: $6,200,393
- Central: $10,693,685
- Eastern: $3,079,595
- Southern: $1,545,527
- Western: $4,677,446
The total collected was $26,196,646.
Allocations for the quarter include:
- Maryland General Fund (Initial 3% Distribution): $6,549,162
- Maryland Cannabis Administration: $7,476,322.67
- Maryland Department of Social and Economic Mobility: $5,332,359
- Community Reinvestment and Repair Fund: $2,393,931
Thirty-five percent of quarterly revenues fund community-based initiatives serving areas disproportionately impacted by the enforcement of cannabis prohibition prior to July 1, 2022. These funds are distributed to counties based on percentages set by the Office of Social Equity.
Additional allocations include:
- Maryland Counties: $341,990 (5% of quarterly revenue, with counties distributing half to municipalities with cannabis dispensaries)
- Cannabis Public Health Fund: $341,990 (5% to address health effects of adult-use cannabis legalization)
- Cannabis Business Assistance Fund: $341,990 (5% through FY 2028 to assist small, minority-owned and women-owned businesses)
- Net to Maryland General Fund: $3,419,901
Southern Maryland counties receive a direct share of the revenue through the regional allocation and county distributions. These funds can support local public health efforts, community reinvestment initiatives and assistance for small cannabis-related businesses.
The Office of the Comptroller releases quarterly reports on cannabis tax revenue. The Maryland Cannabis Administration provides resources on responsible adult cannabis use.
Residents and local governments in Southern Maryland can follow these quarterly updates to understand how cannabis tax revenue supports community programs and economic development in the region.
