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Cannabis Tax Rates: A State-By-State Guide

June 22, 2017
Cannabis Tax Rates: A State-By-State Guide(BrianAJackson/iStockPhoto)
Here’s how each state stacks up in terms of state taxes, excises taxes, and wholesale taxes on both medical and retail cannabis.

Click on a state to jump down to its tax guidelines.

Updated: October 30, 2017


AlaskaArizonaArkansasCaliforniaColorado
ConnecticutDelawareWashington
DC
HawaiiIllinois
MaineMassachusettsMichiganMinnesotaMontana
NevadaNew HampshireNew JerseyNew MexicoNew York
North DakotaOhioOregonPennsylvaniaRhode Island
VermontWashingtonWest Virginia

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Alaska

  • Medical: No tax
  • Wholesale tax: $50 per oz on flower, $15 per oz for stems/leaves

For more information, please visit the Alaska Department of Revenue – Tax Division.

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Arizona

  • Medical: 6.6% state tax + 2-3% optional tax in cities

For more information, please refer to the Arizona Medical Marijuana Rules & Statutes.

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Related

Home Cannabis Cultivation and Possession Laws: A State-by-State Guide

Arkansas

  • Medical: 4% state tax

For more information, please refer to the Arkansas Medical Marijuana Commission.

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California

  • Medical: Medical marijuana sales are exempt from the 7.25% standard tax + excise tax
  • Retail: 7.25% state tax + 15% excise tax
  • Wholesale: $9.25 per ounce of flowers, $2.75 for leaves

For more information, please refer to the Tax Guide for Medical Cannabis Businesses.

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Colorado

  • Medical: 2.9% state tax
  • Retail: 2.9% state tax + 10% excise tax
  • Wholesale: 15% excise tax

For more information, please refer to the Marijuana Taxes File at the Colorado Department of Revenue.

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Connecticut

  • Medical: $3.50 per gram

For more information, please refer to the Marijuana and Controlled Substances Tax.

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Related

6 Lessons Learned Transitioning From a Medical to Adult Use Market

Delaware

  • Medical: No tax

For more information, please refer to the Delaware Medical Marijuana Act Regulations.

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District of Columbia

  • Medical: No tax
  • Retail: No retail sales allowed

For more information, please refer to the Department of Health Medical Marijuana Program.

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Hawaii

  • Medical: 4% excise tax, 4.5% tax on island of Oahu

For more information, please refer to the State of Hawaii Medical Marijuana Program.

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Illinois

  • Medical: 1% pharmaceutical tax
  • Wholesale: 7% tax on cultivators/dispensaries

For more information, please refer to the Medical Cannabis Cultivation Privilege Tax Law.

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Maine

  • Medical: No tax
  • Retail: 10% sales tax
  • Wholesale: $1.30 per pound of processed cannabis

For more information, please refer to the Sales of Medical Marijuana and Related Products and Recreational Marijuana in Maine.

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Massachusetts

  • Medical: No tax
  • Retail: 10.75%
  • State tax: 6.25%
  • Local municipality tax: 3%

For more information, please refer to the Medical Use of Marijuana Program.

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Michigan

  • Medical: 3% sales tax

For more information, please refer to the State of Michigan Tax Policy Newsletter.

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Minnesota

  • Medical: $3.50 per gram

For more information, please refer to the Minnesota Controlled Substance Tax.

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Montana

  • Medical: 4% from July 1, 2017 to June 30, 2018; 2% after June 30, 2018

For more information, please refer to the Montana Marijuana Bill (SB0333).

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Nevada

  • Medical: 2% excise tax
  • Retail: 10% excise tax
  • Wholesale: 15% excise tax

For more information, please refer to the Nevada Department of Taxation Medical Marijuana Tax.

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New Hampshire

  • Medical: No tax

For more information, please refer to the Therapeutic Cannabis Program.

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New Jersey

  • Medical: 7% sales tax

For more information, please refer to the Medical Marijuana Alternative Treatment Center Taxation.

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New Mexico

  • Medical: No tax

For more information, please refer to the New Mexico Medical Cannabis Program.

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New York

  • Medical: 7% excise tax

For more information, please refer to the Excise Tax on Medical Marijuana.

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North Dakota

  • Medical: No tax

For more information, please refer to House Bill 1430.

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Ohio

  • Medical: TBD

For more information, please refer to the Ohio Medical Marijuana Control Program.

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Oregon

  • Medical: No tax
  • Retail: 17% state tax + 3% optional local municipality tax

For more information, please refer to the Oregon Department of Revenue Marijuana Tax Program.

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Related

Your 101 Guide to Recreational Cannabis in Oregon

Pennsylvania

  • Wholesale: 5% excise tax

For more information, please refer to the Pennsylvania Department of Revenue Medical Marijuana Tax.

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Rhode Island

  • Medical: $25 per plant tag for patients/caregivers

For more information, please refer to the Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act § 21-28.6-15 Medical marijuana plant tags.

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Vermont

  • Medical: Exempt from the Vermont Sales and Use Tax

For more information, please refer to the Taxation of Sales of Medical Marijuana and Related Paraphernalia.

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Related

Public Cannabis Consumption Laws: A State-By-State Guide

Washington

  • Medical: 37% excise tax
  • Retail: 8% state tax + 37% excise tax

For more information, please refer to the Department of Revenue – Taxes Due on Marijuana.

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West Virginia

  • Medical: No tax
  • Wholesale: 10% excise tax

For more information, please refer to Senate Bill 386.

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Lisa Rough's Bio Image

Lisa Rough

Lisa is a former associate editor at Leafly, where she specialized in legislative cannabis policy and industry topics.

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  • what about florida??

    • norcal

      florida treats it like medicine and thus there is no NO tax on it!!! GO FLORIDA THEY ARE DOING IT RIGHT—SORT OF.

  • nubwaxer

    CA cannabis tax is a combined 23% sales tax+excise tax for medical where before it was tax exempt, and combined 35% for recreational cannabis. so, since i’m on SSI and spend $90 on cannabis that’s 10% of my income. thanks prop. 64. oh wait, i voted yes, damn it.
    CA cannabis tax is 2-3 times more than CO’s. i think 10-15% medical and 20% recreational would be fairer. i also wonder when and where grow clubs will pop up. i’d pay 3 out of 6 plants to have a legal and secure place to grow my own.

    • norcal

      wrong its higher than 23% . Let me show you ca taxes the item at 60% of the cost of the item to be sold then they add the 15% plus local sales tax. Example : you want a kiva bar that bar costs the retailer 1.00 to buy it, ca taxes that 1.00 kiva bar at 15% exercise of the 60% expected mark up and then the 15% is taxed on at the end and is separate and then local taxes. So 1.00 kiva bar is taxed at 60% of the item ( .6 cents) and then the 1.00 items taxes at 15% (.15 cents) to the retailer. So that item we buy from Kiva isn’t a 15% ( .15 cents) on 1.00 but a 60% expected sale mark up tax of 15% on that amount so ( 6 cents and 15 cents for a combined 21 cents or 21percent) then add the local tax of 8,75 tax for Sacramento rate and now you are at 31.75% total tax. Also, sacramento charges 1% on all cannabis items sold so add this to the over costs and you are at 32.75% total tax….now fed corporate tax is 15% on all profits thank GOD Trump lowed this and you are paying a lot lot more than 23% bub. just alone its 15% exercise tax and 15% exercise tax on 60% of the item expected to sell combined.