Colorado Tops $3B in Cannabis Tax Revenue Since 2014

Since launching adult-use cannabis sales in 2014, Colorado has collected over $3 billion in tax revenue, according to state data. These funds support school construction, mental health programs, local governments, and regulatory efforts.

Tax revenue peaked in early 2020 at $40.7 million in a single quarter but has since declined, with the most recent quarter bringing in $20.3 million. In 2024, total cannabis sales reached $1.4 billion, down from the $2.2 billion peak in 2021.

From January to May this year, sales hit just over $549 million, a 7% drop from the same period last year.

Industry experts point to lower product prices and competition from hemp-derived THC as key factors. The state recently responded by limiting THC content in hemp products to 1.75% as of June.