Washington State Has Garnered Over $5 Billion in Marijuana Tax Revenue Since 2014

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Since the legalization of recreational marijuana in Washington State in 2012, and the commencement of legal sales in July 2014, the state has witnessed an impressive boom in its marijuana market.

Over the past decade, this market has generated approximately $15 billion in total sales, according to the state’s Liquor and Cannabis Control Board. These sales resulted in over $5.5 billion in tax revenue for the state. This revenue has been made possible largely due to Washington’s 37% excise tax on marijuana sales—the highest in the nation.

In 2023 alone, Washington’s marijuana sales reached about $1.25 billion. As of July 2024, the state had already recorded $701.85 million in sales, with July being the most lucrative month, bringing in over $103 million. This consistent performance keeps Washington among the top states in the U.S. for legal marijuana sales.

Washington legalized marijuana in November 2012, tying Colorado as the first state to do so. The law allows those 21 and older to possess up to one ounce of marijuana, seven grams of concentrates, and up to 72 ounces of marijuana-infused liquid products. The 37% excise tax is imposed on marijuana at the point of sale.

Most of Washington’s marijuana tax revenue is allocated to health care, with about a third directed to the state’s general fund. Approximately 8% is distributed among local governments, education and prevention programs, and the administration of the state’s legal marijuana program.

Earlier this year, Governor Jay Inslee signed a law that exempts qualifying patients and designated providers with a recognition card from the 37% cannabis excise tax on purchases of cannabis products labeled as Department of Health (DOH)-compliant and tested according to DOH rules.

Below is a year-by-year breakdown of marijuana sales and taxes in Washington from 2014 to now.

2014

• Total Sales : Approximately $63 million
• Tax Revenue Generated : Approximately $23.31 million

2015

• Total Sales : Approximately $259 million
• Tax Revenue Generated : Approximately $95.83 million

2016

• Total Sales : Approximately $697 million
• Tax Revenue Generated : Approximately $257.89 million

2017

• Total Sales : Approximately $1.37 billion
• Tax Revenue Generated : Approximately $506.9 million

2018

• Total Sales : Approximately $1.52 billion
• Tax Revenue Generated : Approximately $562.4 million

2019

• Total Sales : Approximately $1.45 billion
• Tax Revenue Generated : Approximately $536.5 million

2020

• Total Sales : Approximately $1.85 billion
• Tax Revenue Generated : Approximately $684.5 million

2021

• Total Sales : Approximately $2.02 billion
• Tax Revenue Generated : Approximately $747.4 million

2022

• Total Sales : Approximately $1.95 billion
• Tax Revenue Generated : Approximately $721.5 million

2023

• Total Sales : Approximately $1.25 billion
• Tax Revenue Generated : Approximately $462.5 million

2024 (January to July)

• Total Sales : Approximately $701.85 million
• Tax Revenue Generated : Approximately $259.68 million

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