The mayor of New York City says the rise of tax revenue from marijuana sales “has not been as rapid as the expansion in store openings” because of competition among suppliers and low cannabis prices. But with the market’s expected expansion, the city is anticipating continual growth over the coming years.
In his 2027 preliminary budget that was released on Tuesday, Mayor Zohran Mamdani (D) laid out the state of the cannabis industry, with tax revenue projections reaching $43 million by fiscal year 2030.
For the current fiscal year, the city expects to bring in $24 million in marijuana tax dollars, which marks a 33.3 percent increase compared to the prior year, the budget shows. That’s estimated to grow to $33 million in fiscal year 2027.
The projected cannabis earnings significantly outpace those for cigarette taxes, which are pegged to a consistent haul of $12 million per year.
“Year-to-date collections have grown approximately 50 percent over last year,” the mayor’s budget says. “On average, eight licensed dispensaries have opened each month in the city since July 2025, bringing the total to 211 stores at the end of December, more than double the 105 at the end of the prior December.”
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