| State | Cannabis Type | Subtype | Tax Type | Tax Rate | Tax Basis | Note | |
|---|---|---|---|---|---|---|---|
| Alabama | Medical | Sales Tax | 9.0% | Cost | Allowed for medical usage; recreational cannabis are illegal in Alabama. | ||
| Cannabis Privilege Tax | 9.0% | Cost | |||||
| Alaska | Recreational | Mature bud/flower | Excise Tax | $50 per ounce | Weight | Alaska does not have a state sales tax. However, local jurisdictions may impose sales tax. Anchorage, Borough,Fairbanks, Mat-Su, and Ketchikan charge a 5% excise tax. Juneau charges 3%. | |
| Immature or abnormal bud | Excise Tax | $25 per ounce | |||||
| Trim | Excise Tax | $15 per ounce | |||||
| Clones | Excise Tax | $1 per ounce | |||||
| Medical | N/A | Medical cannabis are not subject to taxes in Alaska. | |||||
| Arizona | Recreational | Transaction Privilege Tax | 5.60% | Cost | |||
| Excise Tax | 16% | ||||||
| Medical | Transaction Privilege Tax | 5.60% | Cost | ||||
| Arkansas | Medical | State Sales Tax | 6.50% | Cost | Sale of recreational cannabis is not legal in Arkansas. | ||
| Excise Tax (Special Privilege Tax) | 4% | ||||||
| California | Recreational | Excise Tax | 15% | Cost | Beginning January 1, 2023, cannabis retailers will be responsible for collecting and paying the cannabis excise tax to the California Department of Tax and Fee Administration (CDTFA) | ||
| State Sales Tax | 7.25% | ||||||
| Medical | Excise Tax | 15% | Cost | ||||
| Colorado | Recreational | Retail Marijuana Sales Tax | 15% | Cost | |||
| Excise Tax | 15% | ||||||
| Medical | State Sales Tax and Local Taxes | 2.90% | Cost | ||||
| Connecticut | Recreational |
|
State Cannabis Tax (Based on the product's type and total THC reflected on its label) | Weight | |||
| Municipal Cannabis Tax | 3% | Cost | |||||
| State Sales and Use Tax | 6.35% | Cost | |||||
| Medical | N/A | N/A | Medical cannabis are not subject to any taxes in Connecticut. | ||||
| Delaware | Medical | N/A | N/A | Medical cannabis are not subject to any taxes. Recreational Cannabis usage is illegal in Delaware. | |||
| District Of Columbia | Medical | Sales Tax | 5.75% | Cost | Adult-use cannabis possession is legal in the District, sales are not. | ||
| Florida | Medical | N/A | N/A | Medical cannabis are not subject to any taxes. Recreational Cannabis usage is illegal in Florida. | |||
| Georgia | Both medical and recreational cannabis are not legal in Georgia. | ||||||
| Hawaii |
Medical |
General Excise Tax | 4.50% | Recreational cannabis are illegal in Hawaii. | |||
| Idaho | Both medical and recreational cannabis are not legal in Idaho. Illegal drug tax is imposed on persons in possession of controlled substances. | ||||||
| Illinois | Recreational | Cannabis cultivation Privilege Tax | 7% of the gross receipts from the first sale of cannabis by a cultivator. | Cost |
Adult use cannabis is taxed at the general merchandise sales tax rate applicable in the jurisdiction in which the dispensary is located plus any additional municipal and county cannabis retailers' occupation taxes. | ||
| Cannabis Purchaser Excise Tax | Any cannabis, other than a cannabis-infused product, with an adjusted delta-9-tetrahydrocannabinol level at or below 35% shall be taxed at a rate of 10% of the purchase price. | ||||||
| Any cannabis, other than a cannabis-infused product, with an adjusted delta-9-tetrahydrocannabinol level above 35% shall be taxed at a rate of 25% of the purchase price. | |||||||
| A cannabis-infused product shall be taxed at a rate of 20% of the purchase price. | |||||||
| Retailer Occupation Tax (State and Local Sales Taxes) | 6.25% | Cost | |||||
| Medical | Medical Cannabis Cultivation Privilege Tax | 7% of the sales price per ounce. | Weight | Medical cannabis is taxed at the qualifying food and drug sales tax rate applicable in the jurisdiction in which the dispensary is located. | |||
| Retailer Occupation Tax | |||||||
| Indiana | Medical and recreational cannabis are illegal in Indiana. | ||||||
| Iowa | Medical | Sales Tax | 6% (Plus additional Local taxes) | Cost | Recreational cannabis are illegal in Iowa. | ||
| Kansas | Both medical and recreational cannabis are not legal in Kansas. | ||||||
| Kentucky | Both medical and recreational cannabis are not legal in Kentucky | ||||||
| Louisiana | Medical | Sales Tax | 7% | Cost | Recreational cannabis are illegal in Louisiana. | ||
| Maine | Recreational | Sales Tax | 10% | Cost | |||
| Medical | State Sales Tax | 5.55/8% | Cost | Prepared food containing Medical Marijuana is subject to tax at 8% | |||
| Maryland | Medical | N/A | N/A | ||||
| Massachusetts | Recreational | State Sales Tax | 6.25% (Plus Additional Local Taxes) | Cost | All sales of marijuana by a marijuana retailer are retail sales subject to the marijuana excise. | ||
| Excise Tax | 10.75% | ||||||
|
3% | ||||||
| Medical | N/A | N/A | Purchasers pay no taxes on medical cannabis. | ||||
| Michigan | Recreational | Sales Tax | 6% | Cost | |||
| Excise Tax | 10% | ||||||
| Medical | Sales Tax | 6% | Cost | ||||
| Minnesota | Medical | N/A | N/A | Purchasers of medical cannabis are not taxed. Unlawful to sell recreational cannabis. | |||
| Mississippi | Medical | Medical cannabis cultivators are subject to excise tax on the first sale/transfer of medical cannabis. | 5% | Cost | Recreational cannabis are illegal in Mississippi. | ||
| Medical cannabis dispensaries will charge the standard sales tax to cardholders at the point of sale. | 7% | ||||||
| Missouri | Medical | Sales Tax On Retail Sales of Marijuana for Medical Use | 4% | Cost | Purchase of recreational cannabis is illegal in Missouri. | ||
| Medical Cannabis Tax | 4% | ||||||
| Montana | Recreational | Excise Tax | 20% | Cost | |||
| Local Option Tax | Up to 3% | ||||||
| Medical | Excise Tax | 4% | Cost | ||||
| Local Option Tax | Up to 3% | ||||||
| Nebraska | Medical and recreational cannabis are illegal in Nebraska. | ||||||
| Nevada | Recreational | Retail excise tax on the sale price when sold by an adult-use cannabis retail store | 10% | Cost |
|||
| Excise Tax on first wholesale Sale | 15% | ||||||
| Sales Tax | 6.85% | ||||||
| Medical | State Sales Tax | 6.85% | Cost | ||||
| New Hampshire | Medical | N/A | Purchasers are not subject to taxes on purchase of medical cannabis. Recreational cannabis are illegal. | ||||
| New York | Recreational | Cannabis Flower | Excise Tax | Five-tenths of one cent (.005) per milligram of the amount of total THC | Weight | ||
| Concentrated Cannabis | Excise Tax | Eight-tenths of one cent (.008) per milligram of the amount of total THC | Weight | ||||
| Cannabis Edible Product | Excise Tax | 12% of sales until July 1, 2025 and then gradually rises to 18% beginning July 1, 2030. | Cost | ||||
| Retail Excise Tax | 13% on the amount charged for the sale or transfer is imposed. | Cost | |||||
| Medical | Excise Tax | 7% | Cost | ||||
| New Jersey | Recreational | State Sales Tax | 6.625% | Cost | |||
| Social Equity Excise Fee on personal use cultivation activities by licensed cannabis cultivators | $1.10 per ounce of cannabis | Weight | |||||
| Local Cannabis Transfer Tax | Up to 2% | Cost | |||||
| Medical | Sales tax on sales made on and after July 1, 2022 | 0% | Cost | ||||
| New Mexico | Recreational | Cannabis Excise Tax | 12% of sales until July 1, 2025 and then gradually rises to 18% beginning July 1, 2030. | Cost | |||
| State Gross Receipt tax | Gross receipts tax rate varies throughout the state from 5.125% to 8.8675% depending on the location of the business. | ||||||
| Medical | State Gross Receipt Tax | Gross receipts tax rate varies throughout the state from 5.125% to 8.8675% depending on the location of the business. | Cost | ||||
| North Carolina | Marijuana Stems & Stalks | $0.40 for each gram or fraction thereof | Weight | While there is no sales and use tax levied on cannabis, it is subject to the excise tax on controlled substances and cannabis. | |||
| Marijuana | $3.50 for each gram or fraction thereof | ||||||
| North Dakota | Medical | State Sales Tax | 5% | Cost | |||
| Ohio | Medical | State Sales Tax | 5.75% | Cost | Recreational cannabis is illegal in Ohio. | ||
| Oklahoma | Medical | Excise Tax | 7% | Cost | Recreational cannabis is illegal in Oklahoma. | ||
| State Sales Tax | 4.5% (Plus local taxes) | ||||||
| Oregon | Recreational | Retail Sales Tax | 17% |
Cost |
|||
| Local Option Sales Tax | Up to 3% | ||||||
| Medical | N/A | N/A | Medical cannabis is not subject to tax in Oregon. | ||||
| Pennsylvania | Medical | Excise Tax | Growers/processors pay a 5% tax on the gross receipts from the sale of medical marijuana to the dispensary. | Cost | There is no tax on purchase of medical cannabis by patients. Recreational cannabis is illegal. | ||
| Rhode Island | Recreational | Excise Tax | 10% | Cost | Retail sales are scheduled to begin December 1, 2022 | ||
| State Sales Tax | 7% | ||||||
| Local Excise Tax | 3% | ||||||
| Medical | State Sales Tax | 10% | Cost | ||||
| Compassion Center Surcharge imposes a monthly surcharge is on the net patient revenue received each month by every compassion center. | 4% | ||||||
| South Carolina | Medical and recreational cannabis are illegal in South Carolina. | ||||||
| South Dakota | Medical | State Sales or Use Tax | 4.5% | Cost | |||
| Municipal Tax | Between 1 to 2% | ||||||
| Tennessee | Harvested marijuana stems and stalks that have been separated from and are not mixed with any other parts of the marijuana plant; | Unauthorized substance tax | 40 cents for each gram | Weight | |||
| Marijuana, other than separated stems and stalks; or plants with foliation taxed | $3.50 for each gram, or fraction | ||||||
| Growing or detached from the soil, on each marijuana plant with foliation | $350 per plant | ||||||
| Texas | Medical and recreational cannabis are illegal in Texas. | ||||||
| Utah | Medical | The sale of a medical cannabis device by a medical cannabis pharmacy is subject to the taxes | The sale by a licensed medical cannabis pharmacy of the following is not subject to taxes (a) Cannabis in a medicinal dosage form; or (b) a cannabis product in a medicinal dosage form. | ||||
| Vermont | Recreational | Cannabis Excise Tax | 14% | Cost | |||
| State Sales Tax | 6% | ||||||
| Medical | N/A | N/A | Medical cannabis is not taxable. | ||||
| Virginia | Recreational | Retail Sales Tax | 21% |
Cost |
Retail sales tax begins January 1, 2024. | ||
| Sales and Use Tax | 5.3% | ||||||
| Local Option Sales Tax | 3% | ||||||
| Medical | N/A | N/A | Medical cannabis is not taxable. | ||||
| Washington | Recreational | Excise Tax | 37% on Retail Sales | Cost | |||
| Retail Sales Tax | 6.5% (Plus Local Taxes) | ||||||
| Medical | N/A | N/A | Purchase of medical cannabis is not taxable. | ||||
| West Virginia | Medical | Excise tax x is imposed on the gross receipts of a grower/processor received from the sale of medical cannabis by the grower/processor to a dispensary. The tax is charged against and paid by the grower/processor. |
10% | Cost | |||
| Wisconsin | Medical and recreational cannabis are illegal in Wisconsin. | ||||||
| Wyoming | Medical and recreational cannabis are illegal in Wyoming. |