The U.S. Census Bureau reports cannabis tax revenue of $825.1 million in Q1 2026 and $14.8 billion since Q3 2021, with California accounting for more than $3.1 billion of that total. The bureau released its latest update to the Cannabis Excise Sales Tax Collections dataset to include first-quarter 2026 figures, continuing its regular federal tracking of state-collected marijuana taxes.
Key Q1 2026 figures – National: $825.1 million reported in cannabis-related tax receipts for Q1 2026. – Comparison: Q4 2025 collections were $878.1 million, so Q1 2026 shows a decline of $53 million (about 6.0%). – Top state Q1 collections: California $151.9M; Washington $98.9M; Michigan $72.5M; New York $69.6M; Illinois $64.9M; Colorado $53.3M.
Cumulative totals since Q3 2021 – Total federal tally since the dataset began: $14.8 billion. – Top cumulative states: California $3.1B; Washington $2.1B; Illinois $1.3B; Colorado $1.3B; Michigan $1.2B; Massachusetts $831.5M; Oregon $777.7M.
What the Census data covers and limitations The Census Bureau began collecting quarterly state-reported cannabis tax figures in Q3 2021. Its dataset combines two tax categories it asks states to report: taxes on cannabis transactions and business license fees. The bureau defines “taxes” broadly to include compulsory government contributions, penalty and interest receipts, and to exclude protested amounts. It also defines “state government” to include executive, legislative, judicial branches and related agencies, commissions and public authorities; that definition can create differences between Census totals and numbers states publish.
The bureau notes its quarterly releases generally reflect taxes collected on sales that occurred during the prior quarter. That means the published Q1 2026 numbers largely represent sales completed in Q4 2025. The dataset does not include tax data from quarters before Q3 2021, and not every state reports every quarter. For example, Nevada did not submit Q1 2026 data despite reporting earlier quarters.
Comparison to other tallies The advocacy group Marijuana Policy Project (MPP) released a separate report this month estimating more than $28.4 billion in tax revenue from recreational marijuana sales since the first legal markets opened more than a decade ago. MPP’s figure covers a longer time span but excludes medical program revenue and some license and application fees. The Census Bureau’s dataset is narrower in historical range but includes license fee receipts when states report them.
An industry analysis by Vangst and Whitney Economics found national cannabis sales revenue declined year-over-year in 2025—the first such drop since 2014 state launches—aligning with the lower quarter-to-quarter tax collections the Census shows entering 2026.
Federal context These federal tracking efforts come as the federal government’s posture toward cannabis is evolving. While marijuana generally remains illegal at the federal level, recent administrative changes announced by the executive branch in 2024–2025 have altered scheduling and regulatory approaches, which affects research, enforcement priorities, and how some federal agencies classify cannabis-related economic activity. In 2023 the Census Bureau updated its Annual Business Survey and related instruments to better capture marijuana-related economic activity among private businesses.
Why the data matters State governments use cannabis excise taxes and license fees to fund designated programs—commonly education, public health, substance use prevention, or general budgets—so tracking collections shows how much revenue states can assign to those uses. The Census dataset provides a standardized federal accounting method that policymakers, researchers and analysts can use to compare states and identify short-term changes in collections.
Caveats for analysts – Timing lag: reported quarter covers sales from prior quarter; recent market changes may not appear immediately. – Incomplete reporting: some states miss quarters or report on a different schedule; the national total is therefore a lower-bound estimate of state collections. – Definition differences: Census counts may differ from state-published totals because of how the bureau defines ‘‘state government’’ and which fees it includes.
Takeaway Federal tracking shows states with legal cannabis collected $825.1 million in Q1 2026 and about $14.8 billion since Q3 2021, with California accounting for roughly one-fifth of that cumulative total. The data set reveals a modest quarterly decline entering 2026 and reflects ongoing efforts by the federal government to quantify economic activity in an industry that remains primarily regulated at the state level. Analysts should combine Census figures with state reports and industry studies to form a complete picture, noting timing and definitional differences between sources.
