Maryland Cannabis Tax Revenue Hits $17.5M in Q1 2025

Revenue Run Rate and Year-Over-Year Growth

The Q1 2025 haul translates to a $70 million annual run rate, up from approximately $56 million collected in 2024. Maryland's adult-use program launched July 1, 2023, converting the state's existing medical framework into a dual-market structure. The Q1 figure represents a sequential uptick from Q4 2024's estimated $16.2 million, suggesting demand has stabilized after the initial post-launch surge.

Maryland levies a 9% excise tax on adult-use sales at the retail level, plus the standard 6% state sales tax. Medical cannabis remains exempt from the adult-use excise but still faces sales tax. The $17.5 million reflects excise collections only. Total tax receipts including sales tax run higher but aren't broken out in the preliminary report.

Key revenue metrics for Maryland's program:

• Q1 2025 excise tax: $17.5 million
• Implied Q1 retail sales (excise only): ~$194 million
• Annualized run rate (excise): $70 million
• 2024 full-year excise (estimated): $56 million

Competitive Context and Mid-Atlantic Comparisons

Maryland's $70 million annual excise run rate trails neighboring states with more mature programs but outpaces Delaware and Virginia, both of which have delayed adult-use rollouts. New Jersey collected approximately $126 million in cannabis excise tax in 2024. Pennsylvania—still medical-only—generated roughly $24 million in medical sales tax. Maryland's per-capita excise yield is tracking near $11 per resident annually, below the $15-20 range seen in established Western markets.

The state's 9% excise rate sits at the lower end of the national spectrum. Illinois charges 10-25% depending on THC content; California's combined state and local rates often exceed 25%. A lower tax burden has helped Maryland avoid the widespread illicit-market price arbitrage plaguing high-tax jurisdictions, though legacy operators remain active in Baltimore and the Eastern Shore.

For full background on this story, see the CannIntel topic hub on Maryland's adult-use program.

Allocation and Budget Impact

Maryland statute directs cannabis tax revenue into four buckets: public health, substance-abuse treatment, public schools, and a community-reinvestment fund targeting disproportionately impacted areas. The FY2026 state budget allocated $45 million in projected cannabis revenue across these categories, a figure the Q1 data suggests will be exceeded. The Cannabis Business Assistance Fund, capitalized at $10 million annually, provides grants and loans to social-equity applicants. Demand has outstripped funding in both application cycles to date.

Licensing remains a constraint on revenue growth. Maryland's Cannabis Administration has issued 103 adult-use retail licenses and 22 cultivation licenses as of May 2025, with a statutory cap of 150 retail and 30 cultivation permits statewide. The next application window opens in Q3 2025. It targets 25 additional retail slots reserved for social-equity applicants.