Montana cannabis retailers reported a record $327 million in sales in 2025, marking another year of steady growth since adult-use sales launched on Jan. 1, 2022, according to state Department of Revenue data.
Over the past four years, Montana has recorded more than $1 billion in combined cannabis sales, and the market composition has changed.
During the first year of adult-use sales in 2022, the market was more balanced. Sales reached $304 million, with medical marijuana products accounting for about one-third of that figure.
Adult-use sales now account for 90% of all cannabis purchases, the Montana Free Press reported, citing state data.
Adult-use cannabis sales have steadily climbed, while the medical marijuana market has experienced a sharp contraction.
From the start of legal sales through the end of 2025, monthly medical marijuana sales plummeted by over 70%.
What are Montana marijuana taxes – and what is Montana cannabis sales tax revenue?
Kate Cholewa, a marijuana policy lobbyist based in Montana, said some adult-use purchases are likely made by people with medical conditions who may not need large quantities of marijuana. They may not recoup the upfront cost of a medical card that would qualify them for a lower tax rate, she said.
The rise of the adult-use market has impacted state tax revenue significantly.
In 2025, the state collected nearly $60 million in taxes from cannabis sales.
Adult-use products are taxed at 20% – five times higher than the 4% tax on medical marijuana. Growth in the recreational market resulted in a 44% increase in annual tax revenue between 2022 and 2025.
Since legalization, adult-use sales have generated about $207 million in tax revenue, compared to less than $10 million from medical sales.
Are Montana cannabis prices falling?
Montana marijuana sales are increasing despite a drop in prices, suggesting the market is stronger than it might look.
According to the DOR, the average price of retail items is dropping across the board.
The monthly average price of a gram of cannabis stood at $5.34 between July 2024 and June 2025, the most recent data available.
That’s down from over $7 a gram when the market started.
And that’s in line with other maturing markets that are reporting selling many more cannabis items amid price drops.
Medical Disclaimer:
The information provided in these blog posts is intended for general informational and educational purposes only. It is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or other qualified healthcare provider with any questions you may have regarding a medical condition. The use of any information provided in these blog posts is solely at your own risk. The authors and the website do not recommend or endorse any specific products, treatments, or procedures mentioned. Reliance on any information in these blog posts is solely at your own discretion.
