Cannabis Tax Rates by State: The Short Answer
There is no national cannabis tax rate. Each legal state sets its own, and most stack three charges on one receipt: a cannabis-specific excise tax, an ordinary state sales tax, and an optional local tax. State excise rates run from roughly 10% to 37% at the retail level. A few states tax by weight or THC potency instead of price. Medical cannabis is taxed lower or exempt in many states.
The Three Layers of a Cannabis Tax Bill
1. Cannabis excise tax
This is the cannabis-only tax. Some states collect it from the retailer as a percentage of the sale price. Others collect it from the cultivator or wholesaler, which still raises the shelf price you pay.
2. Weight-based and potency-based excise
Instead of a percentage, some states charge a fixed dollar amount per ounce of flower or per milligram of THC. Potency-based systems tax concentrates and edibles higher than flower. These rates need periodic adjustment because a fixed dollar amount falls behind inflation.
3. General sales tax and local add-ons
Cannabis is rarely excise-only. Most states also apply the standard sales tax, and cities or counties can add their own percentage on top. That combination is why two shops in the same state can charge different totals.
Examples of State Cannabis Tax Rates
Figures below are the state-level structure only. Local taxes are separate, and legislatures change rates often.
- Washington: 37% excise tax on retail sales.
- Colorado: 15% excise on wholesale cultivation plus a 15% state retail cannabis sales tax.
- California: 15% excise on retail sales. The cultivation tax ended in 2022.
- Oregon: 17% retail sales tax on cannabis.
- Nevada: 10% retail excise plus 15% wholesale excise.
- Illinois: 10% to 25% excise based on THC content, plus 6.25% sales tax.
- Massachusetts: 10.75% excise plus 6.25% sales tax, plus up to 3% local.
- Michigan: 10% excise plus 6% sales tax.
- Arizona: 16% excise on retail sales.
- New York: 13% excise (9% state, 4% local) plus sales tax.
- Maine: 10% excise plus 5.5% sales tax.
Where Hemp CBD Fits in These Rules
Hemp-derived CBD that stays at or under 0.3% THC is not taxed under cannabis excise statutes in most states. It is treated as an ordinary retail product, so you pay standard state and local sales tax. A few states add special rules or exempt CBD as a supplement or medicine. Buying CBD online from a seller in another state adds one more variable: the seller collects tax based on where it has a tax obligation.
How to Confirm the Rate You Pay
- Identify whether the product is medical cannabis, adult-use cannabis, or hemp CBD, since the three are taxed differently.
- Open your state revenue department page and find the cannabis or marijuana tax section.
- Add the city or county rate that applies to the shop's address.
- Compare the total against the tax line on your receipt.
- Recheck the figure each year, because rate changes usually take effect at the start of a fiscal or calendar year.