When you want to buy products from your local weed shop or cannabis dispensary, you might wonder how much of your money goes to the actual product versus the tax that might be tacked onto it.
With the various tax laws in America, we’ve gathered the latest information regarding taxes on weed by state. Here’s an updated look at the cannabis industry across the United States:
Region 1: Northeast
Most states in this region tack their individual statewide retail sales tax on cannabis products.
Division 1: New England
Connecticut
- Medical Marijuana: 6.35% statewide retail sales tax.
The Connecticut Department of Revenue issued a bulletin with detailed marijuana tax policy implications in the state.
Maine
- Medical Marijuana: 5.5% (8% for edibles) statewide retail sales tax
- Wholesale Marijuana: An excise tax on cultivators is 35 cents per pound for seeds, $1.50 per pound for seedlings, $94 per pound for trim, and $335 per pound for flowers.
- Adult-Use Retail: 10% marijuana excise tax; 5.5% statewide retail sales tax
The Maine Municipal Association provided this one-sheet for more information.
Massachusetts
Medical Marijuana: No tax
- The Upshot: 17%-20% tax as out-the-door total
- Adult-Use Retail: 10.75% marijuana excise tax; 6.25% statewide retail sales tax; 3% optional local excise tax
More cannabis tax information on the Massachusetts Department of Revenue website.
New Hampshire
- Medical Marijuana: No tax, no statewide retail sales tax
The New Hampshire Therapeutic Cannabis Program website offers more information
Rhode Island
- Medical Marijuana: 7% statewide retail sales tax
- Additional Tax: 4% monthly surcharge. Rhode Island has medical marijuana compassion centers that pay taxes to the state. These centers may pass the surcharge to their patients.
Rhode Island’s comprehensive taxation rules are available on its official website.
Vermont
- Medical Marijuana: No tax
- Adult-Use Retail: 14% cannabis excise tax; 6% statewide retail sales tax; 20% out-the-door total
The Vermont Department of Taxes issued a document detailing its tax information.
Division 2: Mid-Atlantic
New Jersey
- Medical Marijuana: 4% (until June 30, 2021); 2% (between July 1, 2021 and June 30, 2022); no tax (after July 1, 2022)
- Adult-Use Retail: 6.625% statewide retail sales tax; 2% additional sales tax (local municipalities); 9% out-the-door total
The New Jersey Treasury website offers more information.
New York
- Medical Marijuana: 7% medical marijuana excise tax; no statewide retail sales tax
The New York Department of Taxation and Finance issues a memo for more information.
Pennsylvania
- Medical Marijuana: No tax
- Wholesale Marijuana: 5% wholesale excise tax upon selling to dispensaries
The Pennsylvania Medical Marijuana program provides more information.
Region 2: Midwest
The states in this region where marijuana is legal usually charge their statewide retail sales tax.
Division 3: East North Central
Illinois
- Medical Marijuana: 1% statewide retail sales tax
- Adult-Use Retail: 20% marijuana excise tax for infused food and beverage products; 10% marijuana excise tax for other cannabis products with 35% THC or less; 25% marijuana excise tax for other cannabis products with more than 35% THC; 6.25% statewide retail sales tax; estimated out-the-door total: 31% for concentrates, 26% for edibles, 16% for cannabis leaf
The Illinois Revenue Cannabis FAQ page offers more information.
Indiana
Illegal
Michigan
- Medical Marijuana: 6% statewide retail sales tax
- Adult-Use Retail: 10% marijuana excise tax; 6% statewide retail sales tax
The Michigan Marijuana Regulatory Agency website offers more information.
Ohio
- Medical Marijuana: 6.5%-7.25% (depending on the county) statewide retail sales tax
The Ohio medical marijuana program website offers more information.
Wisconsin
Illegal
Division 4: West North Central
Iowa
- Medical Marijuana: 6% statewide retail sales tax; additional local taxes
The Iowa Office of Medical Cannabidiol website offers more information.
Kansas
Illegal
Minnesota
- Medical Marijuana: No tax
The Minnesota Department of Health website offers more information.
Missouri
- Medical Marijuana: 4% marijuana tax; no additional taxes
The Missouri Department of Revenue website offers more information.
Nebraska
Illegal
North Dakota
- Medical Marijuana: 5% statewide retail sales tax
The state’s marijuana program website offers more information.
South Dakota
- Medical Marijuana: No tax
- Adult-Use Retail: 15% marijuana excise tax; 4.5% statewide retail sales tax
These taxes are only the proposed amounts. Cannabis products will carry these taxes when the proper bills go into effect.
Region 3: South
Cannabis products are illegal in seven states in this region. Most of the states where it is legal usually have no tax for medical marijuana.
Division 5: South Atlantic
Delaware
- Medical Marijuana: No tax; no statewide retail sales tax
The Delaware Health and Human Services Department website offers more information.
Florida
- Medical Marijuana: No marijuana excise tax; 6% statewide retail sales tax
Georgia
Illegal
Maryland
- Medical Marijuana: No medical cannabis excise tax; no statewide retail sales tax
The Maryland Government Finance Officers Association issued a brief for more information.
North Carolina
Illegal
South Carolina
Illegal
Virginia
- Adult-Use Retail: 21% state cannabis excise tax; 5.3% statewide retail sales tax; 3% extra tax per local municipality
These taxes are scheduled to go into effect when adult-use retail stores in the state open in 2024.
District of Columbia
- Medical Marijuana: 5.75% sales tax
- Adult-Use Retail: Sales are illegal but possession is legal.
West Virginia
- Medical Marijuana: 10% tax on gross receipts (for dispensaries, which may pass the responsibility to patients)
The West Virginia Medical Cannabis Act provides more information.
Division 6: East South Central
Alabama
Illegal
Kentucky
Illegal
Mississippi
- Medical Marijuana: 7% marijuana user fee
Patients will pay the fee for using medical marijuana when the state’s medical marijuana legislation (Measure 65) goes into effect.
Tennessee
Illegal
Division 7: West South Central
Arkansas
- Medical Marijuana: 6.5% statewide retail sales tax; 4% privilege tax; extra local taxes
The Arkansas medical marijuana industry issued a report for more information.
Louisiana
- Medical Marijuana: No taxes
Applicable state legislation is available at LegiScan.
Oklahoma
- Medical Marijuana: 7% medical marijuana excise tax; 4.5% statewide retail sales tax; additional local municipal taxes; 12% estimated out-the-door total
Oklahoma issued a tax guidance document for more information.
Texas
Illegal
Region 4: West
Cannabis purchase and possession are illegal in two states in this region. Among the states where they are legal, most add excise tax and additional local municipality taxes.
Division 8: Mountain
Arizona
- Medical Marijuana: 6.6% statewide excise tax; 2%-3% optional tax per local municipalities
- Adult-Use Retail: 16% cannabis excise tax; 5.6% statewide retail sales tax; 21.6% out-the-door total
The Arizona Department of Health Services website offers two pages dedicated to more information.
Colorado
- Medical Marijuana: 2.9% state excise tax; additional local taxes
- Wholesale Marijuana: 15% excise tax
- Adult-Use Retail: 15% cannabis excise tax; additional local taxes
The Colorado Department of Revenue provided documents here for more information.
Idaho
Illegal
Montana
- Medical Marijuana: 4% excise tax
- Adult-Use Retail: 20% marijuana excise tax (projected to go into effect in 2022); no statewide retail sales tax
The Montana Department of Revenue website offers more information.
Nevada
- Medical Marijuana: 4.6% statewide retail sales tax
- Wholesale Marijuana: 15% marijuana excise tax
- Adult-Use Retail: 10% cannabis excise tax; 4.6% statewide retail sales tax; 15% estimated out-the-door total
The Nevada Department of Taxation website offers more information.
New Mexico
- Medical Marijuana: 5.125%-8.815% gross receipt tax for dispensaries
The New Mexico Medical Cannabis program website offers more information.
Utah
- Medical Marijuana: No tax
The Utah Medical Cannabis Act offers more information.
Wyoming
Illegal
Division 9: Pacific
Alaska
- Medical Marijuana: No cannabis excise tax
- Wholesale Marijuana: $50 per ounce of mature bud and flower; $25 per ounce of immature or abnormal bud; $15 per ounce of trim; $1 per clone
- Adult-Use Retail: No statewide cannabis tax; 5% excise tax (Anchorage, Mat-Su Borough, Fairbanks, Ketchikan); 3% excise tax (Juneau)
The Alaska Department of Revenue website offers more information.
California
- Medical Marijuana: 15% cannabis excise tax; local tax per municipality
- Adult-Use Retail: 15% statewide cannabis excise tax; 7.25% statewide retail sales tax; 1% automatic local sales tax; 15% maximum local municipality business tax; 23%-28% estimated out-the-door total
Hawaii
- Medical Marijuana: No marijuana excise tax; 4% statewide retail sales tax (4.5% in Oahu)
Hawaii’s Medical Marijuana Program website offers more information.
Oregon
- Medical Marijuana: No tax
- Adult-Use Retail: 17% cannabis excise tax; 3% local municipal tax; no statewide retail sales tax
The Oregon Health Authority has more information about the medical program, while the Oregon Department of Revenue offers more information on adult-use cannabis.
Washington
- Medical Marijuana: No tax
- Adult-Use Retail: 37% marijuana excise tax
The Washington Liquor and Cannabis Board FAQ page offers more information.
Conclusion
Every state where cannabis purchase and possession are legal has unique tax laws. Visit TNMNews for more comprehensive information about the cannabis industry.