KNOW THE LAWS OF YOUR STATE

Medical Marijuana Sales and Excise Taxes in Each State

STATE

STATE SALES TAX ON MEDICAL MARIJUANA

Alaska

NA: Alaska state law doesn’t authorize sales of medical marijuana by dispensaries

Arizona

Medical marijuana businesses subject to 6.6% transaction privilege tax

California

Even though Cal. law bans for-profit sales, State Board of Equalization has determined that medical marijuana transactions are subject to combined state/local sales taxes of between 7.5% and 8.5%

Colorado

  • Medical marijuana subject to 2.9% state sales tax and local sales taxes
  • Medical marijuana cultivation doesn’t qualify for agricultural tax exemptions
  • Exemptions for indigent patients

Connecticut

  • Dispensary sales of medical marijuana subject to 6.35% state sales tax—exemption for prescription medicine doesn’t apply
  • Medical marijuana producers may be able to claim farmer tax exemption that applies to agricultural production

Delaware

No sales tax but sales receipts become subject to gross receipts tax once they exceed $1.2 million

District of Columbia

Medical marijuana subject to 5.75% sales tax

Hawaii

NA: Hawaii state law doesn’t authorize sales of medical marijuana by dispensaries

Illinois

  • Medical marijuana cultivators will be subject to 7% privilege tax on sales to dispensaries
  • Dispensary sales subject to 7% excise tax
  • Patients/Caregivers subject to 1% sales tax

Maine

  • Medical marijuana sales subject to 5.5% sales tax
  • Edibles subject to 8% meals and rooms tax

Maryland

Sales tax on medical marijuana to be imposed but rate has yet to be determined

Massachusetts

Currently, medical marijuana not subject to sales tax but issue remains unresolved and efforts are being made to make medical marijuana taxable

Michigan

NA: Michigan state law doesn’t authorize sales of medical marijuana by dispensaries

Minnesota

Taxes of $3.50 per gram will be payable on all medical marijuana possessed, transported, transferred, sold or offered for sale

Montana

NA: Montana state law doesn’t authorize sales of medical marijuana by dispensaries

Nevada

  • Medical marijuana subject to 6.85% to 8.1% sales tax
  • Medical marijuana purchases subject to 2% excise tax

New Hampshire

New Hampshire has no state sales tax

New Jersey

Medical marijuana subject to 7% sales tax

New Mexico

Medical marijuana sales subject to gross receipts tax of between 5.125% and 8.8675%

New York

Medical marijuana sales will be subject to 7% excise tax payable by dispensary

Oregon

No state sales tax in Oregon

Rhode Island

  • Medical marijuana subject to 7% sales tax
  • Dispensaries must pay monthly Compassion Center Surcharge of 4% of net patient revenue

Vermont

Medical marijuana currently not subject to state sales tax

Washington

  • NA: Washington law currently doesn’t provide for official licensing of medical marijuana dispensaries
  • However, adult-use marijuana is subject to sales tax and a 25% 3-tier excise tax
  • Sales taxes may be imposed/clarified as part of larger medical marijuana reform law


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