Since Montana legalized adult-use marijuana sales on January 1, 2022, the state has seen over $1 billion in product sales. This surge in adult-use cannabis sales has more than compensated for a steep drop in medical marijuana purchases. The legal cannabis market in Montana, regulated by the Montana Department of Revenue, has shown significant growth, with total monthly sales increasing by around 13% to $27.3 million from January 2022 to December 2025. During this period, medical marijuana sales plummeted by over 70%.
Last year, state sales reached $327 million, with adult-use marijuana accounting for 90%. This translated into nearly $60 million in tax revenue. In 2022, dispensaries recorded $304 million in sales, approximately one-third of which was for medical marijuana. By 2025, annual sales grew to $327 million, or $287 per capita, with nearly 90% coming from adult-use products.
The landscape has changed dramatically since adult-use sales began under laws passed by the 2021 Montana Legislature. Voter-approved legal sales started in some counties in 2022. Medical marijuana, legal since 2004, constituted 40% of sales in 2022 but now makes up only about 10%. Monthly sales varied seasonally, increasing during summer and decreasing in winter. By the end of 2022, adult-use sales rose to nearly $20 million monthly, while medical sales dropped from over $10 million in January to below $6 million by December.
Medical marijuana is taxed at 4%, whereas adult-use cannabis carries a 20% tax—five times higher. This has led to a 44% increase in tax revenues from 2022 to 2025. Over the four years, Montana accrued $217 million in marijuana tax revenue, with $207 million from adult-use sales. According to Kate Cholewa, a Montana marijuana policy lobbyist, some adult-use purchases might still be driven by medical needs, as some users find it more economical despite higher taxes.
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