Colorado‘s licensed marijuana businesses sold about $683.5 million of medical and recreational cannabis in 2014, the first year of legal adult-use sales, according to the Colorado Department of Revenue, a figure widely reported at the time as roughly $700 million. Sales nearly doubled by 2016, peaked at $2.23 billion in 2021, and then fell four years in a row to $1.32 billion in 2025 as prices collapsed. Through 2025 the state collected more than $3.1 billion in marijuana taxes.
The Weed Street Journal reported the first-year total in March 2015, when the state’s early numbers came out. This rewrite keeps that milestone and adds every year since, using the Department of Revenue’s official series, plus the reasons sales rose and then fell. For the rules that govern those stores, see our Colorado marijuana laws guide.
What Happened in 2014
Colorado voters approved Amendment 64 in November 2012, and the first recreational stores opened on January 1, 2014 (New York Times). Under the state’s rules, existing medical marijuana businesses got the first chance at retail licenses. In February 2015 The Washington Post reported that the combined medical and recreational market had reached about $700 million in its first year. The Department of Revenue’s settled figure for calendar 2014 is $683,523,739 (Colorado Department of Revenue).
State marijuana tax collections for February through December 2014 came to $67.6 million (Colorado Department of Revenue). Medical marijuana pays only the 2.9% state sales tax, so medical sales added far less to the state’s take than retail sales did.
Colorado Marijuana Sales by Year
| Year | Total sales (medical + retail) | State marijuana tax revenue |
|---|---|---|
| 2014 | $683.5 million | $67.6 million (Feb. to Dec.) |
| 2015 | $995.6 million | $130.4 million |
| 2016 | $1.307 billion | $193.6 million |
| 2017 | $1.508 billion | $247.4 million |
| 2018 | $1.546 billion | $266.5 million |
| 2019 | $1.748 billion | $302.5 million |
| 2020 | $2.191 billion | $387.5 million |
| 2021 | $2.229 billion | $423.5 million |
| 2022 | $1.769 billion | $325.1 million |
| 2023 | $1.529 billion | $274.1 million |
| 2024 | $1.397 billion | $255.4 million |
| 2025 | $1.316 billion | $236.4 million |
| 2026 (Jan. to July) | $741.0 million | Not yet reported for the full year |
Sources: Colorado Department of Revenue sales reports and tax reports, checked October 2026. The department publishes 2025 and later figures on a three-month lag.
Why Sales Grew, 2014 to 2021
The early growth came from a market that was building itself from scratch. More stores opened as local governments approved them, though many towns opted out; as of April 2017, 176 of Colorado’s 272 municipalities banned retail marijuana businesses, according to the Colorado Municipal League count. Sales passed $1 billion in 2016 and climbed every year through 2021. The largest single-year gain, more than $440 million, came in 2020, the first year of the COVID-19 pandemic.
What Happened Next: The Decline After 2021
After 2021, sales fell for four straight years, a drop of about 41% from peak to 2025. The main driver was price. The state’s average market rate for wholesale flower, which exceeded $1,700 a pound in 2021, fell to $649 a pound in 2025, tying a record low, MJBizDaily reported. Lower prices meant lower dollar sales even where people bought similar amounts. The number of licensed cultivators fell by about a quarter between September 2023 and September 2025, and several well-known brands left Colorado or closed.
Tax revenue followed sales down. Annual state marijuana tax collections fell from $423.5 million in 2021 to $236.4 million in 2025. Even so, total collections since 2014 reached $3.11 billion through 2025, with a share going to school construction under Proposition AA, the tax measure voters approved in 2013.
Where It Stands in 2026
Through July 2026, Colorado stores reported $741 million in sales. Adults 21 and older can possess up to 2 ounces and buy up to 1 ounce per transaction, and retail purchases carry a 15% state retail marijuana sales tax plus local taxes; medical purchases pay the 2.9% state sales tax. Federally, an April 2026 order moved state-licensed medical marijuana to Schedule III, which may ease the federal tax burden on medical sales, while adult-use cannabis stays in Schedule I. See our Colorado law guide, the story of Colorado and Washington’s 2012 votes, and our federal law guide.
Colorado Marijuana Sales FAQ
How much marijuana did Colorado sell in its first year?
$683.5 million in combined medical and recreational sales in 2014, according to the Colorado Department of Revenue. Early reports rounded it to about $700 million.
What year did Colorado marijuana sales peak?
2021, at $2.23 billion. Sales have declined every year since, to $1.32 billion in 2025.
Why are Colorado marijuana sales falling?
Mostly because prices fell. Wholesale flower dropped from more than $1,700 a pound in 2021 to $649 in 2025, so the same purchases bring in fewer dollars.
How much tax has Colorado collected from marijuana?
About $3.11 billion in state marijuana taxes from 2014 through 2025.
What is the marijuana tax in Colorado?
Retail buyers pay a 15% state retail marijuana sales tax plus local taxes. A separate 15% excise tax applies at wholesale. Medical purchases pay the 2.9% state sales tax.
Originally reported by The Weed Street Journal; rewritten and updated in October 2026 with what happened next.
