Cannabis excise taxes in the United States run from roughly 6% to 37% on a retail sale, and a few states skip percentages entirely and tax by weight or THC potency instead. Washington charges the highest straight retail excise rate at 37%. Illinois splits the tax by product type, with flower near 10% and concentrates near 25%. New York and Connecticut tie the tax to milligrams of THC. Colorado and Nevada tax the wholesale transfer instead of the register. That is why a single map can look flat while your receipt tells a different story.
cannabis excise tax rates by state map
Why there is no national cannabis tax rate
Cannabis remains illegal at the federal level, so each state builds its own tax structure. Some states copied their alcohol model. Some wrote something new. Legislatures also revise these numbers often, sometimes mid-year, which means any published rate can go stale fast. Medical programs often get a lower rate or no excise tax at all, so a state can have two very different price tags for the same flower.
how are cannabis taxes calculated at dispensary
The three main ways states charge
- Percentage of retail price. The customer pays a set percentage on top of the shelf price. Washington, Oregon, Arizona, Massachusetts, Michigan, Vermont, Ohio, New Mexico, Missouri, Montana, and Minnesota all use some version of this. Rates cluster between 10% and 20%, with Washington as the outlier.
- Percentage of wholesale price. The tax lands on the first sale from cultivator to processor or retailer, then gets baked into the shelf price. Colorado taxes the wholesale transfer at 15% and layers a separate 15% retail marijuana sales tax on top. Nevada applies a wholesale excise on fair market value.
- Weight or potency. Alaska charges per ounce of flower and per ounce of trim at the cultivation level. New York charges per milligram of THC and varies the rate by product category. Connecticut uses a similar potency model on distributors. Illinois combines a wholesale cultivation tax with tiered retail rates.
Where the extremes sit
Washington is the highest simple rate at 37% on retail sales. Illinois can reach 25% on concentrates and infused products. Vermont sits at 14% excise plus regular sales tax. California holds at 15% excise after lawmakers repealed the cultivation tax in 2022. Missouri is among the lowest at 6% on adult-use sales, with medical at 4%. Maryland applies a 9% sales and use tax rather than a true excise tax, which makes it look cheaper on some maps even though the buyer still pays more.
how are cannabis taxes calculated at dispensary
What stacks on top of the excise tax
Excise tax is rarely the whole bill. Most states also apply standard sales tax, and several allow cities and counties to add their own. Massachusetts pairs a 10.75% excise with 6.25% sales tax plus up to 3% local. Rhode Island adds 7% sales tax and 3% local to its 10% excise. New Jersey uses the state sales tax plus a per-ounce social equity excise fee paid at the cultivation level. Local option taxes can push the total take past 40% in some cities even when the state rate looks modest.
Reading a tax map without getting fooled
I look at three things before trusting any map. First, is the number retail or wholesale? A 15% wholesale tax is not the same as 15% at the register, and comparing them directly skews the picture. Second, does the state tax medical and adult-use the same way? Arizona exempts medical patients from its 16% excise, so the effective rate depends on which line you are in. Third, what local taxes apply where you actually shop? A state figure is a starting point, not your receipt.
Rates change, sometimes with little warning, and product categories are taxed differently in the same store. Confirm current numbers with the state revenue department before you budget around them.