Breakdown of Taxes in Adult-Use States

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