Quick answer
There is no federal cannabis tax. Each state sets its own rate, base, and collection point. State cannabis excise rates run from 6% to 37% of the retail price. Four structures are in use: percent of retail price, percent of wholesale price, weight, and THC potency. Sales tax and local taxes add on top in most states. Medical programs often carry a lower rate than adult-use sales.
Cannabis Tax Rates by State: A Comprehensive Guide
Three tax structures
Percent of retail price
The state takes a share of the final sale. Washington charges 37% at retail. Oregon charges 17%. Arizona charges 16%. Illinois uses a tiered rate: 10% for flower at or below 35% THC, 20% for flower above 35% THC, and 25% for infused products.
which state has the highest cannabis tax rate
Percent of wholesale price
The tax hits at the cultivator or processor level when product moves to a retailer. Colorado charges 15% on wholesale cannabis sales. Nevada charges 15% on wholesale sales plus 10% at retail. The retailer folds the cost into the shelf price.
which state has the highest cannabis tax rate
Weight and THC potency
Alaska taxes flower at $50 per ounce, trim at $25 per ounce, and concentrate at $1.25 per gram. The cultivator pays. Connecticut charges $0.0125 per milligram of THC for flower and $0.0275 per milligram for other products. New York charges $0.005 per milligram of THC for flower, $0.008 for concentrate, and $0.03 for edibles.
State rates
- Alaska: $50 per ounce of flower, $25 per ounce of trim, $1.25 per gram of concentrate
- Arizona: 16% retail excise
- California: 15% retail excise, plus state and local sales tax
- Colorado: 15% wholesale excise, 15% state retail tax, 2.9% state sales tax
- Connecticut: 6.35% sales tax plus THC potency tax
- Illinois: 10% to 25% retail excise based on THC and product type, plus 6.25% state sales tax
- Maine: 10% retail
- Maryland: 9% retail
- Massachusetts: 10.75% excise, 6.25% sales tax, up to 3% local
- Michigan: 10% excise, 6% sales tax
- Minnesota: 10% retail, effective January 1, 2025
- Missouri: 6% retail
- Montana: 20% adult use, 4% medical
- Nevada: 15% wholesale, 10% retail
- New Jersey: 6% retail, 2% local option
- New York: 13% retail (9% state, 4% local) plus potency tax at wholesale
- Ohio: 10% excise plus 5.75% state sales tax on adult-use sales
- Oregon: 17% retail, up to 20% in some cities
- Rhode Island: 10% excise, 7% sales tax, $1.50 per ounce at wholesale
- Vermont: 14% excise, 6% sales tax
- Washington: 37% retail excise
These are state rates as of 2025. Rates change each legislative session.
Sales tax and local tax stack on top
Cannabis excise tax is separate from sales tax. California adds 7.25% state sales tax plus district taxes to the 15% excise. Massachusetts adds 6.25% sales tax and up to 3% local tax to a 10.75% excise. Illinois adds 6.25% state sales tax and local taxes to a 10% to 25% excise. Some states charge sales tax on the excise amount.
Cities and counties add their own rates. New York splits its 13% retail tax as 9% state and 4% local. New Jersey allows a 2% local tax. Oregon cities may add 3% on top of the 17% state rate. Colorado allows local retail cannabis taxes. Two customers in the same state can pay different totals.
How CBD is taxed
Hemp-derived CBD with delta-9 THC at or below 0.3% dry weight falls outside state cannabis excise statutes in most states. It is taxed as ordinary merchandise under state sales tax rules. Five states have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. CBD sold there carries no state sales tax, though cannabis excise taxes still apply to licensed THC products in Alaska, Montana, and Oregon. A few states exempt CBD sold with a prescription. Most do not.
Where to confirm a rate
State revenue department sites publish current rates, tax bases, and forms. City and county tax schedules list local add-ons. Product type, THC content, and buyer status (medical or adult use) decide which rate applies.