Iowa Missing Out on MILLIONS by NOT Legalizing Marijuana

Recreational marijuana remains illegal in the state of Iowa. Yes, the state voted in 2014 to allow medical marijuana, but that law is still viewed as one of the strictest in the entire nation. States bordering Iowa have legalized recreational marijuana in recent years, and are watching the dollars roll in.

Which States Bordering Iowa Sell Recreational Marijuana?

The Des Moines Register reports that Missouri, Illinois, and Minnesota have all legalized the sale of recreational marijuana in recent years. By selling the products, these states have also seen an influx of money spent, and therefore an increase in tax revenue as well. Here is what each state bordering Iowa made in 2025 by selling marijuana products.

How Much Did Illinois Make?

The Register reports that Illinois ended December 2025 with $116.6 million in retail marijuana sales for that month. The state's highest month of sales came in May with $150 million. For the fiscal year, Illinois retail sales totaled $1.5 billion, according to the Register. That added up to $281.3 million in cannabis tax revenue for the state.

How Much Money has Missouri Made?

The Register reports that over the past 12 months, recreational marijuana sales have averaged $100 million per month. That netted the state $50 million in tax revenues that Missouri then sends to the Missouri Department of Veterans, Missouri Public Defender's Office, and Department of Health and Senior Services' Substance Use Disorder Grant Program. Recreational marijuana has been legal in the state since February 2023.

How Much Money has Minnesota Made?

Minnesota allowed recreational marijuana sales at non-tribal dispensaries starting in September 2025, according to the Register. Since then, the state has recorded $41.5 million in sales. Tax figures haven't been released, but Minnesota charges a 15% cannabis tax.

When will Iowa realize that it's missing out on MILLIONS in tax revenue? Right now, we might have a better chance of a federal law legalizing the drug. The Register reports that President Trump signed an executive order that reclassified marijuana from a Schedule I drug to a Schedule III drug.