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.

Photo by Ndispensable on Unsplash

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
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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

Photo by Add Weed on Unsplash

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
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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.