Marijuana Tax Rates by State

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.

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