You can’t get a cannabis license in Indiana. As of November 2026, Indiana has no medical or adult-use marijuana program, so no state agency issues dispensary, cultivation or processing licenses, and selling or growing marijuana is a crime. The only cannabis-plant licenses the state issues are hemp grower and handler licenses from the Office of Indiana State Chemist (OISC) at Purdue University.
Several things are legal. Stores may sell CBD, which Indiana law calls “low-THC hemp extract,” if it has no more than 0.3% delta-9 THC and meets the state’s testing and labeling rules. Intoxicating hemp products such as delta-8 sit in an unregulated gray area under state law, and a federal ban on most of them is scheduled to start in December 2026.
This guide explains Indiana’s cannabis law history, what a business can legally do now, what OISC charges for hemp licenses, and what could change, including a medical cannabis bill planned for 2027. Facts were checked against OISC, the Indiana Code, legislative reporting and dated news in early November 2026.
Key takeaways
- Indiana has no state marijuana business license, medical or adult-use, and no application window is planned.
- OISC hemp grower and handler licenses are the only state licenses tied to the cannabis plant, and OISC does not regulate finished retail products.
- CBD retail needs no special state license, but every product must meet Indiana’s testing and QR-code labeling rules.
- The governor has said he is open to the debate and a senator is drafting a medical bill, but legislative leaders have long opposed legalization.
- Rules differ by state. Neighboring legal markets follow their own laws, and bringing cannabis back into Indiana is illegal.
Who regulates cannabis businesses in Indiana?
No agency licenses marijuana businesses in Indiana, because the law doesn’t allow them. Marijuana is a controlled substance under Indiana Code Title 35, Article 48, and local police and county prosecutors enforce it. Here is who handles the legal pieces:
- Office of Indiana State Chemist (OISC): Licenses hemp growers and handlers under Indiana Code 15-15-13 and the state hemp rules. Its hemp page says OISC does not regulate finished hemp products meant for retail sale.
- The Indiana Code itself: The 2018 CBD law sets testing and labeling rules that apply to anyone who sells low-THC hemp extract. There is no separate state CBD retail permit.
- Indiana Board of Pharmacy: Reviews federal drug scheduling changes. In May 2026 its attorney said state law requires the board to review any finalized federal rescheduling of marijuana and decide whether Indiana objects.
- Local governments: Zoning and ordinary business permits for farms, plants and stores.
There is no medical program to explain. Indiana is one of the few states with neither medical nor adult-use marijuana sales.
A short history of cannabis law in Indiana
Indiana’s record is one of small openings for CBD and hemp, while marijuana itself stayed illegal. The timeline below gives the big turns, and the details follow.
Early bans and today’s penalties
Indiana banned selling cannabis without a prescription in 1913. In 2013 a bill to decriminalize small amounts died, and Gov. Mike Pence said the focus should be “reducing crime, not reducing penalties.” A broad criminal code rewrite took effect July 1, 2014 and reset drug penalty levels.
Today possession of any amount is a misdemeanor punishable by up to 180 days in jail and a $1,000 fine, with stiffer charges for repeat offenses or 30 grams or more with a prior drug conviction, according to NORML’s summary of the Indiana Code. Selling or growing 30 grams or more is a felony. First-time offenders may be offered a conditional discharge.
Local actions and court fights
In 2015 the First Church of Cannabis formed in Indianapolis and sued the state, arguing that the new Religious Freedom Restoration Act protected its members’ marijuana use. The claim didn’t change state law. In 2019 Marion County Prosecutor Ryan Mears announced his office would stop prosecuting adults for possessing about an ounce or less. Other prosecutors still charge it, and state law did not change.
CBD: from patient registry to store shelves
In April 2017 Gov. Eric Holcomb signed House Enrolled Act 1148, a narrow CBD law for registered patients. In March 2018 the Legislature passed Senate Enrolled Act 52, which allowed anyone to buy and sell low-THC hemp extract as long as it is tested and labeled with a scannable code linking to batch information.
Hemp and the smokable hemp ban
A 2019 law, Senate Enrolled Act 516, built Indiana’s hemp licensing program and banned smokable hemp. Retailers sued. In July 2020 the Seventh Circuit Court of Appeals held in C.Y. Wholesale v. Holcomb that the federal Farm Bill blocks states from banning hemp transport or shipment, but that Indiana may ban manufacturing and financing smokable hemp. OISC moved to a USDA-approved state hemp plan in 2022.
2015 to 2026: medical and adult-use bills stall
Medical cannabis bills have been filed in most sessions since at least 2015, and none has become law. In January 2025 House Republicans ruled out of order, 66 to 29, a Democratic amendment to drop cannabis from a drug-scheduling bill. Two 2025 medical bills, House Bill 1178 and Senate Bill 113, didn’t pass. House Speaker Todd Huston has said, “I don’t believe public policy should ever be built based off revenue,” and Senate President Pro Tem Rodric Bray has said, “It’s no secret that I am not for this.”
Intoxicating hemp: two failed crackdowns
In 2025, Senate Bill 478 would have put delta-8 and similar products under the Alcohol and Tobacco Commission with retail permits and age limits. It cleared House committees but didn’t become law. In 2026 Senate Bill 250 would have matched the new federal hemp limits and set a 21-and-over rule. It passed the Senate but died on February 23, 2026 when the House didn’t call it before a deadline, and a late attempt to add it to another bill also failed.
What cannabis license types exist in Indiana?
The table shows what is and isn’t legal and the fees in OISC’s USDA-approved hemp plan. That plan sets the grower and handler fee as a ceiling (“not more than”), so ask OISC for the exact current amount. Hemp licenses expire December 31 of the year issued and can’t be transferred.
| License type | What it lets you do | Application fee | Annual or renewal fee |
|---|---|---|---|
| Marijuana dispensary, grow, processor, delivery or lounge (medical or adult-use) | Not legal. No license exists, and these activities are crimes | Not available | Not available |
| Hemp grower license (OISC) | Grow hemp in a field, greenhouse or indoor site, including clones | Nonrefundable fee of up to $1,000; exact amount set by OISC | Reapply each year for the same fee |
| Hemp handler license (OISC) | Process, dry or transport hemp for others | Nonrefundable fee of up to $1,000; exact amount set by OISC | Reapply each year for the same fee |
| Grower and handler together (OISC) | Both activities under one applicant | Up to $2,000 for both | Reapply each year |
| Agricultural hemp seed production (OISC) | Produce hemp seed, in addition to a grower or handler license | Not published; ask OISC | Not published; ask OISC |
| Late, change and resampling fees (OISC) | Fix unlicensed activity or an unreported site, change a site, or resample a failed crop | $750 late fee on top of the application fee | $50 per change of record; $325 for remediation sampling |
| CBD (low-THC hemp extract) retail | Sell tested CBD with no more than the legal THC limit and a compliant QR-code label | No state retail license | None at the state level |
| Delta-8, THCA flower and other intoxicating hemp | Unregulated under state law, with no permit or age rule; federal limits are scheduled | No state permit | No state permit |
| Smokable hemp manufacturing | Banned under Indiana’s 2019 hemp law | Not available | Not available |
To compare licensed states, see our dispensary license costs by state.
Are cannabis licenses open in Indiana right now?
No marijuana license window exists or is scheduled. There are no caps, lotteries or waitlists, and no license can be bought, because Indiana has never issued one.
Hemp licensing works on a yearly cycle. Under the state plan, OISC may open applications once it announces them, no earlier than October 1 of the year before the growing season. Check the OISC hemp page for the current window.
How do you apply for an Indiana hemp license?
- Choose your role: grower, handler or both, plus seed production if needed.
- Check zoning for your farm, greenhouse or processing site.
- Form the business and name every key participant.
- Order background checks. OISC requires one for each key participant, dated within 60 days of the application.
- Apply online through OISC’s hemp portal and pay the fee.
- Get written approval before any hemp activity starts.
- Report and sample. Report varieties and sites, request sampling at least 30 days before harvest, and file harvest reports.
Requirements you’ll need to meet
Ownership and residency
OISC’s hemp pages don’t list an Indiana residency rule. You must disclose key participants, and licenses are nontransferable.
Background checks
Federal hemp rules, which Indiana’s plan follows, bar anyone with a state or federal controlled-substance felony conviction for 10 years after the conviction. Applicants pay for their own checks.
Capital, bonds and insurance
The plan sets no capital or bond requirement. Buyers and lenders may require liability or crop insurance.
Real estate, security and SOPs
List every growing or handling site, and pay the change fee before adding or swapping one. There are no state buffer zones for hemp. Write procedures for sampling, failed-lot disposal and records, and keep stored hemp secure.
Retail labeling
Under the 2018 law, CBD must come from hemp tested by an independent accredited lab. Labels must include a scannable code or QR code linking to batch information and a certificate of analysis, plus the batch number, a website, an expiration date, the amount of extract, the manufacturer and a THC statement.
Local approval and zoning
No Indiana city can license a marijuana business. For hemp, county and city zoning still decides where farms, processing plants and stores can operate. Check with your city clerk about general business permits before you open a store.
Social equity and small-business programs
Indiana has no cannabis social equity or small-business licensing program, because it has no cannabis licensing program. Any future medical law would set its own rules. Hemp growers can ask Purdue Extension and USDA about general farm programs.
Indiana cannabis market at a glance
What a business can legally do in Indiana now
- Grow, process or transport hemp with an OISC license.
- Sell CBD that is lab-tested and labeled under the 2018 law. Keep each batch’s certificate of analysis on hand.
- Be careful with intoxicating hemp. Delta-8, THCA flower and similar products are sold in Indiana without state rules, but that won’t last at the federal level. A 2025 federal law narrows hemp to count total THC and caps finished products at 0.4 milligrams of THC per container. It was set to start November 12, 2026, and a September 2026 stopgap bill moved that to December 11, 2026, according to Nutritional Outlook. Products over the limit will be treated as marijuana under federal law.
- Don’t make smokable hemp. Manufacturing it is banned in Indiana.
- Serve Hoosiers only from legal markets, lawfully. You can open a licensed business in Illinois, Michigan or Ohio if you meet that state’s rules. Those stores may sell to visiting adults, but carrying cannabis back into Indiana is illegal, and no business may ship or deliver it there.
For background, see our explainers on delta-8 and THCA flower.
What could change in Indiana?
The governor and lawmakers
On April 28, 2026, Gov. Mike Braun said, “I’m going to do what makes sense,” and noted that federal rescheduling “makes it more likely” Indiana acts. He stopped short of endorsing full legalization. In May 2026 Sen. Mike Bohacek, a Republican, said he is drafting a 2027 bill to legalize medical cannabis, set taxes and update impairment laws, and said it “would not legalize the use of recreational marijuana.” Bills for the 2027 session can’t be filed until late 2026, and Huston and Bray have opposed legalization in the past.
Federal moves
President Trump signed an executive order in December 2025 to speed up moving marijuana to Schedule III. In April 2026 the US Department of Justice announced a limited Schedule III move for certain state-licensed medical products, with broader rescheduling still in a DEA hearing process. Indiana’s Board of Pharmacy has said it will wait for final federal action before responding.
Hemp rules
Rep. Garrett Bascom, the House sponsor of the 2026 hemp bill, said he hopes to try again. Its Senate author, Sen. Aaron Freeman, has argued that Indiana’s law will be out of step with federal law once the new limits start.
Polls and neighbors
A RAND study for the Richard M. Fairbanks Foundation, released in April 2026, estimated that legalization could raise about $180 million a year in taxes by year five and that Indiana spends $10 million to $20 million a year on enforcement. Illinois, Michigan and Ohio allow adult-use sales and Kentucky has authorized medical cannabis. None of this guarantees a law change.
After you’re licensed: staying compliant
- Renew yearly. Hemp licenses expire December 31, and late filings bring an extra fee.
- Sampling and reports. File variety, site and harvest reports on time and pay for crop testing.
- Records. Keep lab results, transport papers and sales records. Our seed-to-sale tracking explainer shows how licensed states handle this.
- Labels and advertising. Keep CBD QR codes working, never make health claims and never market to minors. See our packaging and labeling guide and dispensary compliance checklist.
- Expanding later. If you open in a legal state, review our dispensary security requirements and budtender training requirements.
Your Indiana cannabis license checklist
- Accept that no marijuana license exists in Indiana yet.
- Decide between hemp growing, hemp handling and CBD retail.
- Check zoning for every site.
- Order background checks within the 60-day window before applying.
- Apply through OISC’s hemp portal and wait for written approval.
- Confirm every CBD product has a working QR code and a lab report.
- Plan to clear intoxicating hemp stock before the federal limits start.
- Follow Sen. Bohacek’s bill and the 2027 session.
- Want a licensed cannabis store? Study the rules in a neighboring legal state.
For new cannabis businesses: get found on WhereLeaf
If you open a licensed cannabis business in a legal state, add it to WhereLeaf so adults using our dispensary finder can see your location, hours and menu, and compare our listing packages for more visibility. Hemp suppliers can join our supplier directory. We can’t promise rankings or sales.
Comparing markets? See all our cannabis license guides by state and province.
Frequently asked questions
Can I open a dispensary in Indiana?
No. Indiana has no medical or adult-use program, so no dispensary license exists. A CBD store, a hemp business or a licensed shop in a neighboring state are the legal routes.
Is medical marijuana legal in Indiana in 2026?
No. A senator plans to file a medical bill for the 2027 session, but it would need to pass both chambers and be signed. Until then, Indiana patients have no legal access.
Is delta-8 legal in Indiana?
Indiana hasn’t regulated it, so it is widely sold. The federal hemp change set for December 2026 will treat most of these products as marijuana, so stores should plan now.
Do I need a license to sell CBD in Indiana?
No state CBD license is required, but products must be lab-tested and carry the required QR code and label. Your city may still require a general business permit.
How much does a hemp license cost in Indiana?
See the table above. Testing, travel and resampling costs depend on your crop and sites, so budget extra beyond the license itself.
Can I bring cannabis from Michigan or Illinois into Indiana?
No. Buying is legal for adults in those states, but possessing it in Indiana is a crime, and crossing state lines with cannabis is illegal. See where cannabis is legal.
This guide is general information, not legal advice. Rules and fees change, so confirm everything with the Office of Indiana State Chemist before you apply.
Sources
- Office of Indiana State Chemist: Hemp Program (2026)
- Office of Indiana State Chemist: Indiana State Hemp Plan (2022)
- Office of Indiana State Chemist: 2024 Hemp Report (2025)
- Congressional Research Service: Changes to the Statutory Definition of Hemp and Issues for Congress (2026)
- Carlton Fields (law firm, backup source): 7th Circuit says states can regulate smokable hemp (2020)
- Harris Sliwoski (law firm, backup source): Labeling CBD Products: The Unique Case of Indiana (2018)
- NORML (advocacy group, backup source): Indiana Laws and Penalties (2025)
- Indiana Capital Chronicle: Indiana regulators awaiting final federal marijuana action as lawmaker drafts legalization bill (2026)
- Indiana Capital Chronicle: Braun signals openness to marijuana legalization as outside report outlines policy considerations (2026)
- Indiana Capital Chronicle: Indiana hemp drug ban, early voting restrictions die at deadline (2026)
- Indiana Capital Chronicle via Yahoo News: Last-minute attempt to revive hemp drug ban fails in final hours (2026)
- Indiana Capital Chronicle: After third committee vote, delta-8 regulations head to House floor (2025)
- Cannabis Business Times: Indiana House Republicans block amendment to remove cannabis from Schedule I (2025)
- Indianapolis Business Journal: Hoosier Survey shows support for key policy areas across partisan divide (2024)
- NORML: Marion County prosecutor will no longer move forward with low-level marijuana violations (2019)
- Nutritional Outlook: Federal hemp limit delayed to December 11 (2026)
- Wikipedia (background only): Cannabis in Indiana (2026)
Last updated: November 2026. Laws and prices change; always check your state or provincial regulator.
