Vermont Cannabis Policy Overview

Vermont has been at the forefront of cannabis policy reform. In 2018, the state became the first in the nation to legalize adult-use cannabis possession through legislation rather than a ballot initiative. Lawmakers later authorized a regulated marketplace in 2020, which also included provisions for expungement of certain cannabis-related offenses and broader criminal justice reforms.

Licensed retail cannabis sales began in October 2022, marking the launch of Vermont’s regulated adult-use marketplace. Since then, the state has continued refining its cannabis laws, including strengthening social equity provisions and support programs for individuals impacted by past cannabis enforcement.

Under Vermont law, adults 21 and older may:

• Possess up to one ounce of cannabis
• Purchase up to 8,400 milligrams of THC in cannabis products
• Cultivate up to two mature plants and four immature plants at home for personal use

Cannabis sales are subject to a 14% excise tax, the state’s 6% sales tax, and an optional 1% local tax.

The oversight of the burgeoning industry falls under the purview of the Cannabis Control Board, tasked with regulating cannabis businesses to ensure compliance and safety standards are met.

Since launching in October 2022, Vermont’s regulated cannabis marketplace has expanded significantly. According to the Vermont Cannabis Control Board, the state has licensed more than 70 retail dispensaries serving the adult-use market and hundreds of cultivators across multiple license tiers.

In November 2023, regulators temporarily paused licensing for larger cultivators (Tier 4 and Tier 5) due to concerns about potential oversupply in the state’s relatively small market.

Legislative developments

Vermont lawmakers continue to debate adjustments to the state’s cannabis laws as the industry matures.

Several proposals introduced during the 2025–2026 legislative session aim to modify regulations governing cannabis businesses and consumer access.

One proposal, S.278, would make several significant changes to Vermont’s cannabis laws, including:

• Removing the THC potency cap on cannabis flower
• Increasing the retail transaction limit to two ounces
• Allowing cannabis event permits and on-site consumption licenses
• Authorizing cannabis delivery services
• Lowering the state cannabis excise tax from 14% to 10%
• Requiring municipalities that have not voted on cannabis retail to hold a vote in the 2026 election

Lawmakers are also considering separate proposals that would require local votes in municipalities that have not yet decided whether to allow cannabis businesses.

These proposals reflect ongoing debate about how Vermont should regulate and expand its cannabis marketplace while balancing economic growth, public health considerations, and local control.

Timeline of Vermont’s cannabis progress

Vermont has been at the forefront of marijuana policy reform for over two decades, and MPP is proud to have worked hand-in-hand with local allies and lawmakers to make those humane and compassionate laws a reality. Vermont became one of the first state legislatures to pass medical marijuana in 2004, the state has made significant strides in expanding patient access and freedom for all adult cannabis consumers since then.

Evolution of Vermont's Marijuana Laws:

1. 76 (2004): Vermont became the ninth state to approve medical marijuana, enacting a very limited law to provide legal protection to qualifying patients. All but one of the earlier laws were by voter initiative.
2. 645 (2011): Legislation was enacted to allow for the establishment of four dispensaries, expanding patient access to medical cannabis products.

Decriminalization (2013): Possession of an ounce or less of marijuana by individuals aged 21 and older resulted in a civil penalty akin to a traffic ticket, reducing the burden on patients.

Legal possession (2018) — On January 22, 2018, Governor Phil Scott signed H. 511, legalizing possession and limited cultivation of cannabis by adults aged 21 and older.

Legal sales and expungement (2020) — Gov. Scott allowed a legal sales bill, S. 54, to become law without his signature. He also signed legislation providing for automatic expungement of all cannabis possession offenses.

Establishment of the Cannabis Control Board (2020): The three-member Cannabis Control Board (CCB) was established through Act 164 of 2020 for the purpose of safely, equitably implementing and administering the laws and rules regulating adult-use cannabis (marijuana) in Vermont.

Legal sales begin (2022) — Adult use sales began in October 2022.

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