In states where marijuana sales are legal, taxes are applied. This tax varies by state and county, just like general sales tax. States levy three types of taxes based on a percentage of the wholesale or retail price, weight, and THC level. In addition, some states permit counties to implement a local or jurisdictional tax.

Tax on medical marijuana is much less than that applied to recreational purchases due to excise tax. Excise tax is applied to alcohol, cigarettes, gambling, porn, and cannabis, as all are viewed as “unnecessary or socially harmful”. Patients with a state-regulated medical marijuana card can save you hundreds, if not thousands, of dollars spent at dispensaries.

Marijuana Tax Rates by State

Alaska 

  • Recreational Tax: Localities can levy an excise tax at their discretion.
  • Medical Tax: None
  • Wholesale Tax: Mature bud/flower is taxed at $50 per ounce. Trim is $15 per ounce. Flat rate of $1 per clone.

Arizona

  • Recreational Tax: 24.6% (16% excise tax)
  • Medical Tax: 6.6% (cities can tax an additional 2-3 %)

Arkansas

  • Medical Tax: 10.5%

California 

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

Colorado

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

Connecticut 

  • Medical Tax: $3.50 per gram

Delaware

  • Medical Tax: None

District of Columbia

  • Medical Tax: None

Illinois 

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

Maine 

  • Recreational Tax: 10% sales tax
  • Medical Tax: None
  • Wholesale Tax: $1.30 per pound of processed cannabis

Massachusetts 

  • Recreational Tax: 10.75% + 6.25% state and 3% local sales tax
  • Medical Tax: None
  • Wholesale Tax: 9.25%

Michigan

  • Medical Tax: 3%

Minnesota 

  • Medical Tax: $3.50 per gram

Montana

  • Medical Tax: 2%

Nevada 

  • Recreational Tax: 10% excise tax
  • Medical Tax: 2% excise tax
  • Wholesale Tax: 15% excise tax

New Hampshire

  • Medical Tax: None

New Jersey

  • Medical Tax: 7%

New Mexico

  • Medical Tax: None

New York

  • Medical Tax: 7% excise

North Dakota 

  • Medical Tax: None

Ohio

  • Medical Tax: Per county

Oregon

  • Recreational Tax: 17% state tax + 3% optional local municipality tax
  • Medical Tax: None

Pennsylvania

  • Medical Tax: Per county
  • Wholesale Tax: 5% excise

Rhode Island

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

Vermont

  • Medical Tax: Exempt

Washington

  • Recreational Tax: 8% state tax + 37% excise tax
  • Medical Tax: 37% excise tax

West Virginia

  • Medical Tax: None
  • Wholesale Tax: 10% excise tax