The cannabis tax rate by state ranges from about 6.6% in New Jersey to more than 43% in Washington State once you add a state’s cannabis tax and its regular sales tax. As of October 2026, most adult-use states charge a special cannabis tax of 10% to 20% at the register, and many add sales tax and local taxes on top.
Taxes are a big reason the same eighth costs more in one state than another. Some states also tax growers or distributors, so part of the tax is built into the shelf price before you reach the register.
Below is a state-by-state table of adult-use cannabis taxes, checked against each state’s revenue department or regulator. We also explain the different kinds of tax, show worked examples, list 2025 and 2026 changes, and cover how Canada taxes cannabis.
Key takeaways
- Washington State is the clear outlier at the top, and New Jersey is the only adult-use state with no cannabis-specific tax at the register.
- Most shoppers pay more than one tax at once, so the menu price is rarely the price you pay.
- Some taxes never show on a receipt because growers or distributors pay them and pass them into the shelf price.
- Rates have been rising, not falling, so a price you remember from last year may be out of date.
- Registered patients often pay less, and local rates vary by city. Always check your local regulator.
What is the cannabis tax rate by state in 2026?
This table covers every state with licensed adult-use sales as of October 2026. “Cannabis tax at retail” is the special tax added at the register; “sales tax” is the general sales tax, if it applies. Each row comes from the state revenue department, regulator or statute listed in the sources.
| State | Cannabis tax at retail | Sales tax | Local cannabis tax |
|---|---|---|---|
| Alaska | None at retail; growers pay a per-ounce tax (see below) | No state sales tax | Varies by city or borough |
| Arizona | 16% excise | Transaction privilege tax (5.6% state + county/city) | Through local TPT |
| California | 15% excise | 7.25% base + district taxes, charged on price after excise | Many cities and counties tax cannabis businesses |
| Colorado | 15% retail marijuana sales tax | Exempt from state sales tax | Varies by city or county |
| Connecticut | THC tax per milligram | 6.35% | 3% municipal |
| Delaware | 15% retail marijuana tax | No state sales tax | None listed by the state |
| Illinois | 10% (flower up to 35% THC), 20% (infused products), 25% (over 35% THC) | 6.25% state + local general rate | Up to 3% city; up to 3.75% county |
| Maine | 14% adult-use sales tax (since Jan. 1, 2026) | The 14% is the sales tax | None |
| Maryland | 12% sales and use tax (since July 1, 2025) | The 12% is the sales tax | None; counties get a revenue share |
| Massachusetts | 10.75% excise | 6.25% | Up to 3% |
| Michigan | 10% excise | 6% | None |
| Minnesota | 15% gross receipts tax (since July 1, 2025) | 6.875% state + local sales tax | Local general sales taxes only |
| Missouri | 6% state marijuana tax | 4.225% state + local sales tax | Up to 3% |
| Montana | 20% | No state sales tax | Up to 3% county option |
| Nevada | 10% retail excise | State and local sales tax | Through local sales tax |
| New Jersey | None at retail | 6.625% | Up to 2% municipal |
| New Mexico | 14% excise (since July 1, 2026) | Gross receipts tax (varies by location) | Through local GRT |
| New York | 13% retail tax (9% state, 4% local share) | Exempt from sales tax | Included in the 13% |
| Ohio | 10% excise | 5.75% state + county sales tax | Through county sales tax |
| Oregon | 17% | No state sales tax | Up to 3% |
| Rhode Island | 10% state cannabis excise | 7% | 3% local cannabis excise |
| Vermont | 14% excise | 6% | 1% local option, where adopted |
| Washington State | 37% excise | 6.5% state + local sales tax | Through local sales tax |
Virginia isn’t in the table yet. Lawmakers approved a retail market in 2026, and Axios reported in June 2026 that sales are expected to start July 1, 2027, with a 6% state cannabis tax and local add-ons. Washington, D.C. allows possession but has no licensed adult-use stores.
How much tax do you pay at a dispensary?
Add up your state’s retail-level taxes, then any local tax. In most adult-use states, that’s about 13% to 22% on top of the shelf price. Washington State is the outlier at 43.5% before local sales tax.
Worked examples on a $50 purchase
Here’s the math in four states, using state rates only. Local taxes can push the total higher.
| State | How the taxes stack | Taxes | Total before local tax |
|---|---|---|---|
| Washington State | Excise ($18.50) + state sales tax, both on the $50 price ($3.25) | $21.75 | $71.75 |
| California | Excise ($7.50), then sales tax on the price after excise ($4.17) | $11.67 | $61.67 |
| Massachusetts | Excise ($5.38) + sales tax ($3.13) | $8.51 | $58.51 |
| New York | Retail cannabis tax ($6.50), no sales tax | $6.50 | $56.50 |
In Washington State, sales tax isn’t charged on the 37% excise. In California, it is. Vermont’s tax department gives its own example: $100 of cannabis in a town with the local option tax costs $121.
For typical shelf prices, see how much an eighth costs.
What’s the difference between cannabis excise tax, sales tax and wholesale tax?
You’ll see the first two on your receipt; the others are built into the shelf price.
- Retail excise tax: A cannabis-only percentage charged at the register, like Washington State’s 37%.
- General sales tax: The same sales tax you’d pay on other goods. Some states apply it to cannabis (Massachusetts, Michigan, Illinois) and others exempt cannabis (New York, Colorado’s state rate).
- Wholesale or cultivation tax: Charged when growers or distributors sell to stores. Shoppers don’t see it, but it raises prices.
- Potency tax: Based on THC content. Connecticut taxes by milligram of THC, and Illinois sets its retail rate by THC level.
Which states tax cannabis before it reaches the store?
| State | Wholesale or supply-chain tax |
|---|---|
| Michigan | 24% wholesale tax, effective Jan. 1, 2026; revenue goes to a road fund |
| Colorado | 15% retail marijuana excise tax on wholesale sales or transfers |
| Nevada | 15% wholesale excise on the first wholesale sale |
| New York | 9% distributor tax on sales to retailers (since June 1, 2024) |
| Illinois | 7% cultivation privilege tax on growers’ first sale |
| Maine | $223 per pound of flower and $63 per pound of trim (from Jan. 1, 2026) |
| New Jersey | $2.50 per ounce Social Equity Excise Fee on cultivators (2026) |
| Alaska | $50/oz mature flower, $25/oz immature or abnormal flower, $15/oz trim |
An industry group challenged Michigan’s wholesale tax, but the Court of Claims declined to block it on December 8, 2025, and the industry said it would appeal. Treasury still listed the tax as in effect when we checked in October 2026.
Which states have local cannabis taxes?
Local taxes are why two stores in the same state can charge different totals. The table above lists each state’s cap. The highest we verified is in Illinois, where cities can add up to 3% and counties up to 3.75% in unincorporated areas (3% inside cities). Massachusetts, Connecticut, Oregon, Rhode Island and Montana allow up to 3%, and New Jersey up to 2%.
In California, Colorado and Washington State, local rates vary widely by city. Ask the store for an out-the-door price, or check a past receipt.
Which states changed cannabis taxes in 2025 and 2026?
Cannabis taxes have moved a lot in the past 18 months. These are the changes we confirmed with state sources:
- Minnesota, July 1, 2025: The cannabis gross receipts tax rose from 10% to 15%.
- Maryland, July 1, 2025: The adult-use sales tax rose from 9% to 12%.
- California, July to October 2025: The excise tax rose to 19% on July 1, 2025, then returned to 15% on October 1, 2025, after AB 564 was signed. CDTFA says the next scheduled change is delayed until July 1, 2028.
- New Mexico, July 1, 2025 and 2026: The excise rose to 13%, then to 14%. It’s set to climb one point a year until it reaches 18% on July 1, 2030.
- Delaware, August 1, 2025: Adult-use sales began with a 15% retail tax.
- Maine, January 1, 2026: The adult-use sales tax rose from 10% to 14%, while per-pound taxes on growers fell.
- Michigan, January 1, 2026: A new 24% wholesale tax took effect on top of the 10% retail excise.
Do medical cannabis patients pay less tax?
Often, yes. Many states with both medical and adult-use programs tax registered patients at a lower rate. Examples we verified as of October 2026:
| State | What registered patients pay instead |
|---|---|
| Colorado | 2.9% state sales tax instead of the retail marijuana sales tax |
| Missouri | 4% marijuana tax |
| Montana | 4% |
| Nevada | No retail excise |
| New Mexico | No excise |
| Delaware | No retail tax with a valid registry card |
| Rhode Island | No state or local cannabis excise |
| New Jersey | No sales tax since July 1, 2022 |
Washington State also exempts recognition-card holders from sales tax on compliant products, and since June 6, 2024, from the 37% excise at medically endorsed stores. You usually need to show your card at checkout.
How is cannabis taxed in Canada?
Canada taxes cannabis mostly at the producer level through a federal excise duty, so it’s built into the shelf price. Retail stores then add GST or HST, and provincial sales tax where it applies. Here are the combined duty rates from the Canada Revenue Agency (CRA):
| Product | Combined cannabis duty |
|---|---|
| Dried or fresh flower | The higher of $1.00 per gram or 10% of the producer’s price |
| Non-flowering material (trim) | The higher of $0.30 per gram or 10% |
| Seeds and plants | The higher of $1.00 each or 10% |
| Edibles, extracts and topicals | $0.01 per milligram of total THC |
A quarter of each rate is the base federal duty, and three quarters is an “additional cannabis duty” collected for participating provinces and territories. Manitoba doesn’t use the additional duty. Four places add an adjustment on top: Alberta (16.8%), Nunavut (19.3%), Ontario (3.9%) and Saskatchewan (6.45%). Amounts are in Canadian dollars.
Your cannabis tax checklist
- Look up your state’s retail cannabis tax in the table above.
- Check whether regular sales tax also applies to cannabis in your state.
- Find out whether your city or county adds its own cannabis tax.
- Ask the store whether menu prices include tax or if tax is added at checkout.
- If you’re in a state medical program, bring your registry card to get the lower rate.
- Compare out-the-door prices, not shelf prices, when you shop around.
- Buy only from licensed stores. Learn how to tell if a dispensary is licensed.
- Don’t carry cannabis across state or national borders to save on tax. It’s illegal.
Compare stores near you with WhereLeaf’s dispensary finder, and see where cannabis is legal in 2026.
For dispensary owners: make your prices clear
Showing whether your menu prices include tax, and posting your local rate, builds trust before shoppers arrive. WhereLeaf lists licensed dispensaries and delivery services across the US and Canada. Add your listing so shoppers can see your hours, location and menu, and look at our featured packages to rank higher in local results. Growers and brands can join the supplier directory, and our dispensary license cost guide covers license fees.
Frequently asked questions
Which state has the highest cannabis tax?
Washington State, by a wide margin, as the table above shows. Its excise isn’t charged sales tax on top, but the rate is so high that shoppers there still pay the most. Registered patients can avoid much of it at medically endorsed stores.
Which state has the lowest cannabis tax?
New Jersey, because it has no cannabis-specific tax at the register. Shoppers pay regular sales tax plus any local cannabis tax. The state’s grower fee is set each year by the Cannabis Regulatory Commission, and it’s built into shelf prices.
Why is weed so expensive after tax?
Most states charge a cannabis excise tax on top of sales tax and local taxes, and some also tax growers or distributors. Those supply-chain taxes raise shelf prices before retail taxes are added.
How much is the cannabis tax in California?
California’s rate is in the table above. What’s unusual is that sales tax is charged on the price after the excise is added, so you pay tax on tax. The excise briefly rose in mid-2025 before a new law brought it back down, and CDTFA says the next scheduled change is delayed until July 1, 2028.
Do you pay tax on cannabis in Canada?
Yes. Licensed producers pay an excise duty that’s built into the shelf price, and stores add GST or HST plus provincial sales tax where it applies.
Sources
- Tax Foundation: Recreational Marijuana Taxes by State, 2026 (2026)
- Arizona Department of Revenue: Adult Use Marijuana (2026)
- California Department of Tax and Fee Administration: New Cannabis Excise Tax Rate Effective October 1, 2025 (2025)
- California Department of Tax and Fee Administration: Cannabis tax revenue for fourth quarter 2025 (2026)
- Colorado Department of Revenue: Marijuana Sales Tax (2026)
- Colorado Department of Revenue: Marijuana sales generate over $236M in tax and fee revenue for 2025 (2026)
- Connecticut Department of Consumer Protection: How will cannabis be taxed? (2021)
- Delaware Division of Revenue: Marijuana Establishments and Retail Tax FAQs (2025)
- Illinois Department of Revenue: Cannabis Taxes (2026)
- Illinois Department of Revenue: County and Municipal Cannabis Retailers’ Occupation Tax (2026)
- Maine Legislature: 36 MRSA 1811, Sales tax rates (2026)
- Maine Morning Star: New taxes Mainers can expect in January (2025)
- Comptroller of Maryland: Maryland collects $28 million in cannabis tax revenue from April to June (2026)
- Massachusetts Department of Revenue: Form MRT Instructions, Marijuana Retail Taxes (2026)
- Massachusetts Division of Local Services: Local Option Excise Taxes (2026)
- Michigan Department of Treasury: About the Marijuana Retailers Excise Tax (2026)
- Michigan Department of Treasury: Wholesale Marijuana Tax (2026)
- Michigan Public: Michigan’s new 24% marijuana tax will go forward, for now (2025)
- Minnesota Revisor of Statutes: 295.81, Cannabis gross receipts tax (2025)
- Minnesota House of Representatives: New law raises cannabis gross receipts tax (2025)
- Missouri Department of Revenue: Marijuana (2026)
- Montana Department of Revenue: Cannabis Tax (2026)
- Nevada Department of Taxation: Cannabis Establishment Tax FAQs (2026)
- New Jersey Division of Taxation: Cannabis and Intoxicating Hemp Products Sales (2024)
- New Jersey Cannabis Regulatory Commission: Approval of 2026 Social Equity Excise Fees (2025)
- New Mexico Taxation and Revenue Department: Cannabis Excise Tax (2026)
- New York State Department of Taxation and Finance: Adult-use cannabis products tax (2026)
- Ohio Department of Taxation: Adult Use Marijuana Tax (2026)
- Oregon Department of Revenue: Marijuana (2026)
- Rhode Island Division of Taxation: Adult Use Cannabis Tax (2026)
- Vermont Department of Taxes: Cannabis Excise Tax (2026)
- Washington State Department of Revenue: Cannabis retailers, medical endorsement (2026)
- Axios Richmond: Virginia’s weed market gets a date (2026)
- Chicago Sun-Times: Illinois cannabis consumption rises as state tax revenue dips (2026)
- Canada Revenue Agency: How to calculate the cannabis duty and additional cannabis duty (2026)
- Canada Revenue Agency: Adjustment rates for the additional cannabis duty (2026)
Last updated: October 2026. Laws and prices change; always check your state or provincial regulator.
