Maryland Rakes in $18.4 Million in Cannabis Tax Revenue in Q3 — But Where Is It Going?

Maryland’s Department of Comptroller confirmed that cannabis sales generated approximately $18.4 million in tax revenue during the third quarter of fiscal year 2025, following a recent tax hike from 9% to 12% on July 1. The additional 3% is directed to the state’s General Fund.

Of the total:

Maryland is proving that adult-use cannabis can deliver meaningful tax income. The fact that Q3 revenue surpasses earlier quarters—despite already notable gains—underscores both strong consumer demand and the immediate impact of the tax increase. The redistribution of funds toward equity, public health, and local governance is a promising marker of fiscally responsible cannabis policy.

With cannabis poised to remain a key revenue generator, policymakers face a dual mandate: continue nurturing the market (keeping it competitive and legally accessible) while safeguarding against misuse—particularly regarding public health and youth exposure.

Funding through CRRF and the Business Assistance Fund could be transformative—boosting social equity applicants, supporting minority entrepreneurs, and repairing communities disproportionately impacted by prohibition. Whether this becomes a model for other states hinges on the effectiveness and transparency of these investments.

Engagement Prompt:

Maryland is channeling cannabis tax dollars into equity, community reinvestment, and health programs. When new dollars roll in, what’s more important—boosting market momentum, or ensuring those revenues create meaningful public impact? Share your thoughts below!