Arizona’s Cannabis Industry Surpasses $255 Million in Taxes From Over $1 Billion in Sales in 2025

The total reflects tax collections from adult-use and medical marijuana sales, including the state’s 16% excise tax that applies only to adult-use purchases. With November now included, Arizona’s year-to-date marijuana tax revenue for 2025 stands at $255,493,777, pushing the state well past the quarter-billion-dollar mark for the year. Although this is a slight decrease from the $260 million sold during the same period in 2024, prices are down around 15% according to the research firm Headset.

Monthly marijuana tax collections in Arizona have remained consistently strong throughout 2025, with every month generating more than $20 million in combined revenue. October produced $20,678,253, while November rebounded to one of the higher totals of the year.

Arizona voters approved adult-use marijuana through Proposition 207 in November 2020, legalizing possession and sales for adults 21 and older. Retail sales began just two months later, in January 2021, making Arizona one of the fastest states to transition from voter approval to licensed recreational sales. Adult-use purchases are subject to standard transaction privilege taxes in addition to a 16% excise tax, while medical marijuana sales remain taxed under a separate framework.