display cabinet with glass shelves of cannabis plants
Photo via IndigoElf at stock.adobe.com.

Cannabis sales in Maryland continue to be profitable, as the state’s comptroller’s office released revenue numbers for July–September 2025. The State of Maryland collected more than $26.8 million in cannabis sales tax revenue in that three-month period.

The Maryland Office of the Comptroller announced the revenue, along with the information that the largest share was gas generated in Maryland’s Central Region. This includes Baltimore City, as well as Anne Arundel, Baltimore, Carroll, Harford, and Howard counties. State law requires the comptroller to collect sales and use tax revenue generated from the retail sale of adult-use cannabis in Maryland.

table outlining cannabis sales tax revenue in Maryland 3rd quarter
July–Aug. 2025 cannabis sales and use tax revenue. Table via Comptroller of Maryland.

Sales and use tax for cannabis increased from 9% to 12% on July 1, 2025, because of the Budget Reconciliation and Financing Act of 2025. This additional 3% goes to Maryland’s General Fund before any additional allocations are made, as outlined by the Cannabis Reform Act of 2023. For this period, an estimated $11.7 million in total will go to the General Fund.

Specifically, for this quarter, the initial 3% distribution to the General Fund will be $6,719,093. After disbursements, the General Fund will net $5,003,380. The Maryland Cannabis Administration will receive $10,150,520. The Community Reinvestment and Repair Fund (CRRF) will get $3,502,355.  This money funds community-based initiatives in areas disproportionately impacted by cannabis arrests prior to July 1, 2022.  The Office of Social Equity determines how the funds are distributed county to county.

Maryland counties, the Cannabis Public Health Fund, and the Cannabis Business Assistance Fund will each receive $500,338, which amounts to 5% of quarterly revenues to each.

What is given to Maryland counties is based on the percentage of revenue they paid. Those counties distribute 50% of the funds to municipalities with cannabis dispensaries. The Cannabis Public Health Fund uses the money to address the health effects associated with legal adult cannabis use. The Cannabis Business Assistance Fund assists small, minority-owned, and women-owned businesses entering the adult-use cannabis industry.

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