Maryland Cannabis Tax Revenue Hits $28.7 Million for Second Quarter, Continuing Growth

Maryland collected $28.7 million in cannabis sales tax revenue between April and June 2026, according to the Office of the Comptroller — continuing a steady upward trend since the state raised its cannabis tax rate last year.

The figure builds on $26.2 million collected in the first quarter of 2026, a roughly 9.5% increase quarter-over-quarter. It also marks a substantial jump from the same quarter last year, when Maryland collected about $18.4 million — though that year-over-year comparison is shaped in part by the tax rate itself: Maryland’s cannabis sales and use tax rose from 9% to 12% on July 1, 2025, under the Budget Reconciliation and Financing Act of 2025.

Regionally, Central Maryland again generated the largest share of revenue, at $12.19 million, consistent with recent quarters. The Capital region followed at $6.34 million, Western Maryland at $5.06 million, the Eastern Shore at $3.43 million, and Southern Maryland at $1.66 million.

Under the Cannabis Reform Act of 2023, the additional 3 percentage points from last year’s tax increase flows directly into Maryland’s General Fund before the remaining revenue is distributed according to the law’s formula. For this quarter, that initial 3% distribution totaled $7.17 million.

Of the remaining revenue, 35% — $5.66 million this quarter — funds the Community Reinvestment and Repair Fund, which supports community-based initiatives in areas disproportionately affected by cannabis-related enforcement prior to legalization in July 2022. Those funds are distributed to counties based on formulas set by the state’s Office of Social Equity.

The Maryland Cannabis Administration and the Department of Social and Economic Mobility each received roughly $2.66 million this quarter. Maryland counties received a combined $809,253 — more than double the $341,990 counties received in the first quarter of 2026 — with counties required to pass along half of that amount to municipalities hosting the dispensaries that generated the revenue. Another $809,253 went to the Cannabis Public Health Fund, which addresses health effects associated with legalized adult-use cannabis. After all distributions, $8.09 million returned to Maryland’s General Fund.

The revenue reflects a cannabis market that has grown steadily since adult-use legalization. Maryland recorded roughly $1.17 billion in total cannabis sales — medical and adult-use combined — in 2025, and had 187 licensed cannabis businesses operating as of early 2026, including 109 dispensaries, 23 growers, and 27 processors.

The Comptroller’s Office releases these revenue reports quarterly. The Maryland Cannabis Administration has also published resources on responsible adult cannabis use.


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