As of early 2025, 24 states, plus Washington, D.C., have legalized both recreational and medical cannabis. Meanwhile, 39 states (including those with recreational use) allow medical cannabis under varying regulations. Read More: newsweek.com
Top States by Cannabis Sales in 2024
According to state and industry data, here’s a breakdown of the largest cannabis markets in 2024 by total sales (medical + recreational):
| State | Total 2024 Sales | Notes |
|---|---|---|
| California | $4.66 billion | Largest market; recreational launched 2018: cannabis.lacity.gov |
| Michigan | $3.03 billion | Legal since Dec 2019; 10 % excise tax |
| Illinois | $2.01 billion | Recreational since 2020; medical since 2014 |
| Massachusetts | $1.67 billion | Legal recreational 2016; strong sales |
| Missouri | $1.46 billion | Medical only but above $1 b milestone |
| New York | ≈ $1 billion projected | Adult-use launched 2021; 2024 nearing $1B |
| Maryland | ≈ $1.1 b projected | Recreational began July 2023 |
In total, U.S. cannabis sales hit ~ $31–35 billion in 2024, with growth to ~$35.2 b expected in 2025 .
Largest Revenue Generators
Looking at cannabis tax revenue, California leads quarterly collections (e.g., 161 million/quarter) followed by Washington and Michigan: fastcompany.com “Tax revenue from weed by state: A 4/20 map for 2024 – Fast Company”. Over the full year, California’s 2023 cannabis taxes topped **567 million**, with Washington (460 million) and Illinois (278 million) close behind. Read More: lendingtree.com
Which State Should You Move To?
If you’re considering relocating, here are some top contenders depending on priorities:
1. California
- Pros: Massive, mature market; diverse culture; vast product offerings.
- Cons: Sky-high cost of living; regulatory complexity; heavy taxes.
- Best for: Entrepreneurs, cultivators, those seeking innovation.
2. Michigan
- Pros: Strong $3 b market; lower living costs; supportive tax structure.
- Cons: Harsh winters; still building tourism-et al. infrastructure.
- Best for: Small businesses, families, midwestern lifestyle seekers.
3. Illinois
- Pros: Robust urban and suburban markets; strong social equity programs; legislative clarity: en.wikipedia.org, myjournalcourier.com
- Cons: Chicago winters; tax burden moderate to high.
- Best for: Policy-minded business owners, anyone valuing equity initiatives.
4. Massachusetts
- Pros: High per-capita sales; proximity to Boston’s innovation scene.
- Cons: Smaller scale; costlier operations than the Midwest.
- Best for: Academics, biotech integration, boutique growers.
5. New York
- Pros: Huge urban consumer base; projected 1 b+ sales; equity and enforcement focus marketwatch.com. “New York’s pot business on track to join 1 billion legal state sales club”.
- Cons: Still stabilizing regulations; uneven rollout; high cost.
- Best for: Investors, medical professionals, policy advocates.
Considering Both Recreational & Medical Access
If you need both medicinal access and adult-use, focus on states that offer both legalities and strong markets. Here’s how the top markets stack up:
- California: ✔️ recreational & medical – broadest choice
- Michigan: ✔️ both – consistent growth
- Illinois, Massachusetts, New York, Maryland: ✔️ both – strong regional ecosystems
Ideal Move: Which State Wins?
Based on balance, market strength, legal environment, and quality of life, here’s a ranking:
| State | Market Size | Legal Access | Living Cost | Advantage Highlights |
|---|---|---|---|---|
| Michigan | 2nd largest | Med & Rec | Moderate | Affordable, robust growth, early mover |
| Illinois | Top 3 | Med & Rec | Moderate-high | Equity focus, urban/suburban diversity |
| California | #1 | Med & Rec | Very high | Innovation hub, deep ecosystem |
| New York | Growing | Med & Rec | Very high | Big-city demand, policy focus |
| Massachusetts | Compact but strong | Med & Rec | High | Academic & biotech overlap |
| Maryland | Emerging ~$1B | Med & Rec | Moderate-high | Growing legal clarity |
🏅 Best Overall: Michigan
- Major sales volume ($3B/year)
- Legal for both medical & recreational
- Lower living costs than coasts
- Strong regulatory system with a decade of legal history
Runner-up: Illinois — offers impactful social equity programs, solid market, moderate climate, and a balanced urban/suburban lifestyle.
Things to Consider Before Moving
- Tax & Regulatory Structures
- Excise/sales tax rates vary (e.g., Michigan: 10%, California: 15%, Massachusetts: ~17%) : usafacts.org
- Licensing Access
- Check social equity programs (notably IL and CA)
- Cost of Living
- Coastal states trend higher; Midwest is more affordable
- Quality of Life
- Climate, culture, job markets all vary significantly
- Growth Potential
- New York & Maryland are just ramping up — opportunity if you’re early
Final Take
- Legal dual-access (rec & med): 24 states + D.C.
- Top-grossing markets: CA, MI, IL, MA, NY, MD
- Best relocation pick: Michigan — excellent infrastructure, legal clarity, and affordability
- Close runner-up: Illinois — strong equity, balanced urban/suburban, robust market