Arnold Border Cannabis Guide: Annapolis, Maryland

Annapolis carries two identities that shape its cannabis market more than any other Maryland city: it's the seat of state government, and it's home to the US Naval Academy. State legislators and government staff cycle through during legislative session, while midshipmen and Navy families live under a federal military justice system that treats cannabis use far more harshly than Maryland's civilian courts ever would. Both populations make Annapolis a city where discretion matters even though the underlying product is fully legal.

The city is also Maryland's premier Chesapeake Bay destination, and that boating and tourism culture shows up clearly in the customer base — sailors in the Eastport maritime village across Spa Creek, historic-district tourists visiting the colonial brick rowhouses downtown, and Anne Arundel County residents doing everyday shopping along the Parole retail corridor on Route 2. Tourism peaks hard in summer, and dispensary foot traffic downtown follows that same seasonal curve.

Retail sits in one pocket rather than several: the West Street and Generals Highway stretch out toward Parole and the Westfield Annapolis mall, where parking exists and commercial rent is a fraction of what the historic district commands. Neither downtown near City Dock nor Eastport across Spa Creek has a licensed storefront, so sailors, legislators and tourists all end up making the same short drive inland. That combination of legislators, military-adjacent families, sailors, and tourists doesn't exist together anywhere else in Maryland, which makes a well-placed local listing unusually valuable here.

Maryland's cannabis market has moved past its launch phase into steady, heavily-taxed maturity. Voters approved Question 4 in November 2022 with roughly two-thirds support, the General Assembly passed the enabling Cannabis Reform Act, and Gov. Wes Moore signed it in May 2023. Retail sales began July 1, 2023, with roughly 98 existing medical dispensaries converting to dual licenses on day one. As of September 2026, the Maryland Cannabis Administration (MCA) licenses 123 dispensaries statewide, operating in 21 of Maryland's 23 counties plus Baltimore City; only Garrett and Talbot counties still have none.

The market is a genuine billion-dollar business. Full-year 2025 sales hit roughly $1.174 billion combined adult-use and medical, averaging about $96 million a month, with December 2025 posting the second-highest month on record at $102.6 million. Sales held near $99 million a month into 2026. The state's social-equity dispensary licences, awarded by lottery starting in 2024, were slow to convert into open stores, but openings picked up through the year: 25 of the 123 dispensaries MCA now lists are social-equity licensees, the rest being medical operators that converted on day one.

The biggest 2025-2026 change is the tax rate: lawmakers raised the state tax on adult-use cannabis from 9% to 12% effective July 1, 2025, and counties are barred by statute from levying any cannabis tax of their own, taking a 5% share of the state collection instead. Medical purchases remain tax-exempt. On delivery, Gov. Moore signed HB622 on May 12, 2026, pushing the sunset on medical-only delivery from standard dispensaries to July 1, 2027, and doubling the employee cap for micro dispensaries from 10 to 20. On-site consumption licences have existed on paper since the 2023 Cannabis Reform Act, with a statutory ceiling of 50 statewide; SB215 in 2025 repealed the plan to issue up to 15 of them in the second licensing round, restricted applications to social-equity applicants, and allowed vaping and single-serving edibles but no indoor smoking. MCA had still not issued a single lounge licence as of this writing.

Home cultivation stays legal for adults 21+, capped at two plants per residence regardless of how many adults live there. Interstate transport is still a federal crime in every direction — into Washington DC, Virginia, Pennsylvania, Delaware, or West Virginia — which is why Maryland's DC-suburb dispensaries in Montgomery and Prince George's counties see some of the heaviest traffic in the state.

Maryland's in-state cultivators are the names to know. CULTA, based in Baltimore, is one of the state's best-known craft growers. Maryland edibles cases also carry the Robhots gummy line and Old Pal's value range. Evermore Cannabis Company, also grown in Maryland, has built a reputation on terpene-forward, small-batch flower. SunMed Growers runs a large Dutch-style greenhouse operation and is generally the more affordable, everyday-price option on a menu. Curio Wellness rounds out the group with flower, tinctures, and capsules aimed at both medical patients and adult-use shoppers who want a consistent, lab-tested product. Menus vary by dispensary and change often, so treat any specific listing as a starting point rather than a guarantee — check the current menu before you drive out.

The state tax hike from 9% to 12% in July 2025 is the headline change shoppers will notice on every receipt. Sales have stayed remarkably steady anyway — Maryland is running close to $99 million a month into 2026, on pace for another billion-dollar-plus year. Social-equity dispensaries are finally opening in real numbers after a slow 2024-2025, though still only a fraction of the 83 licenses awarded have converted into working stores. Delivery got a one-year reprieve on the medical side with HB622, and micro dispensaries — the only path to adult-use delivery — got room to hire twice as many agents, which should widen coverage beyond the DC suburbs and Baltimore metro over the next year. Consumption lounges remain legal on paper but not yet real anywhere in the state.