Arizona Marijuana Taxes Reach $73.8 Million in Q1 2026
- Arizona generated $73.8 million in total marijuana tax revenue during the first quarter of 2026, with monthly collections of approximately $25 million each in January, February, and March.
- The revenue includes transaction privilege taxes (TPT) on medical and adult-use marijuana, as well as the state's marijuana excise tax, with excise taxes making up the largest portion of the total.
- Adult-use marijuana is the primary contributor to tax revenue, consistently outperforming medical marijuana in monthly TPT collections throughout Q1 2026.
- The Q1 2026 cannabis tax revenue is nearly equivalent to the $75.1 million collected during the same period in 2025, highlighting its steady role in funding public programs since legalization in 2020.
Arizona generated $73.8 million in total marijuana tax revenue during the first three months of 2026, according to new data released by the Department of Revenue.
Total collections reached $24,980,585 in January, followed by $25,252,257 in February and $23,576,239 in March, bringing the quarterly total to $73,809,081. These figures include revenue from transaction privilege taxes (TPT) on both medical and adult-use marijuana, as well as the state’s marijuana excise tax.
Adult-use marijuana remains the dominant driver of tax revenue in Arizona. In each of the three months, adult-use TPT collections significantly outpaced medical marijuana, while excise tax revenue consistently accounted for the largest share overall. For example, in January alone, the state collected over $15.4 million in excise taxes, compared to roughly $8.4 million from adult-use TPT and $1.1 million from medical marijuana TPT.
The $73.8 million in cannabis taxes garnered in Q1 2026 is roughly on par with the $75.1 million sold during the same period in 2025.
Arizona legalized marijuana for adult use in 2020, with licensed retail sales launching in January 2021. Since then, marijuana taxes have become a consistent source of revenue for the state, supporting various public programs including education, infrastructure, and public health initiatives.