Massachusetts Made $289 Million Off Weed Last Year

Legal marijuana sales in Massachusetts have turned into a major source of money for the state, and some of it comes right back to communities like ours here in Western Mass.

In fiscal year 2025, which ended on June 30, 2025, the state collected $289 million in cannabis tax revenue. That was up from $272 million in fiscal year 2024. The money keeps growing year after year. -masscannabiscontrol.com

It is important to know that only recreational marijuana is taxed. Medical marijuana is tax-free in Massachusetts. So all of this money comes from adult-use sales - products sold at dispensaries to people 21 and older. Recreational cannabis is taxed at 10.75% as a special excise tax, plus the state's normal 6.25% sales tax. That adds up to 17% before any local taxes.

Where does the money go?

Where does all that money go? A big chunk supports public health programs, anti-drug awareness campaigns, and the Cannabis Social Equity Trust Fund, a program that gives grants to business owners from communities hit hardest by old drug laws.

Cannabis tax money also helps fund the MBTA (the state's public transit system) and the Massachusetts School Building Authority, which pays for school construction and repairs across the state.

Northampton collects a ton of tax revenue

Cities and towns that allow cannabis stores can also collect up to an extra 3% local tax on top of the state taxes. Every Massachusetts community with dispensaries has chosen to do that. Northampton, to the east of us in the Pioneer Valley, is one of the top cannabis tax-collecting cities in the entire state, meaning local dispensary sales are putting real money into city services.

Since recreational cannabis became legal in Massachusetts in 2016, the state and towns have collected nearly $2 billion in total cannabis tax revenue. Adult-use sales alone have now passed $8 billion overall.