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Breakdown of Taxes in Adult-Use States

State Wholesale Excise Tax Rate Retail Excise Tax Rate Standard Sales Tax Rate Local Sales Tax Rates Applicable to Medical?
Alaska Flower: $50/oz. ($25 for abnormal bud)
Trim: $15/oz.		 N/A N/A Some local cannabis-
specific taxes 		N/A — Medical law does not include sales.
Arizona N/A 16% 5.6% Transaction Privilege Tax Optional 2-3% local tax No, 6.6% tax applies to medical, plus optional 2-3% local tax
California Flower: $9.25/oz. Trim: $2.75/oz. 15% 7.25% Standard local taxes of up to 3%; some local cannabis-
specific taxes		 State-registered patients are exempt from standard sales tax.

Colorado

 15% 15% N/A Standard local taxes of up to 6%; some local cannabis-
specific taxes		 Registered patients are exempt from 15% retail excise tax, but most pay 2.9% standard sales.
Illinois 7%

Flower: 10%

Products: 20%

≥35% Potency: 25%		 6.35% Up to 3.5% Registered patients are exempt from most taxes, but medical is taxed via a 7% cultivation tax and a 1% pharmaceutical tax.
Maine

Flower or mature plants: $335/lb.

Trim: $94/lb.

Immature plant or seedling: $1.50

Seed: $0.30		 10% N/A N/A Medical sales are taxed at a lower rate — about 5.5%.
Mass. N/A 10.75% 6.25% Local cannabis-
specific taxes of up to 3% 		Medical is not taxed.
Michigan N/A 10% 6% N/A Medical has a separate rate: 3% excise sales tax plus 6% standard sales tax.
Montana N/A 20% N/A N/A No. Medical providers pay a 4% tax on gross cannabis sales.
Nevada 15% of fair market value 10% 6.85% Standard local taxes of up to 1.25% Medical has a separate rate: 15% at wholesale, with the 10% retail tax waived.
New Jersey TBD TBD 6.625% Up to 2% on each transfer (grower to processor, processor to retailer, and retailer to customer) The 6.625% sales tax applies, as do local taxes of up to 2%. The sales tax sunsets in 2022.
Oregon N/A 17% N/A Standard local taxes of up to 3%; some local cannabis-
specific taxes		 Medical is not taxed.
South Dakota N/A 15% 4.5%  Some localities apply an additional 2% sales tax. No, but the standard 4.5% sales tax may apply.
Vermont N/A 14% 6% N/A Medical is not taxed.
Washington N/A 37% 6.5% Standard local taxes of up to 3.9% Patients with medical cards are exempt from standard sales tax.


Last updated: November 23, 2020

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