Cannabis Tax Hub by Cannabis Promotions

Cannabis Tax Rates by State 2026

See how much cannabis really costs in every US state. Excise taxes, state sales tax, and local cannabis business taxes — combined into one effective rate. Use the calculator to model any purchase.

1 30%+ 9 20–30% 16 10–20% 6 Under 10% 19 No Legal Cannabis Market
Open Tax Calculator → Compare States →
Alaska: 8–13% total effective cannabis tax Alabama: No market total effective cannabis tax Arkansas: 14–14% total effective cannabis tax Arizona: 22–24% total effective cannabis tax California: 27–38% total effective cannabis tax Colorado: 20–30% total effective cannabis tax Connecticut: 20–26% total effective cannabis tax District of Columbia: 7–7% total effective cannabis tax Delaware: 15–15% total effective cannabis tax Florida: No market total effective cannabis tax Georgia: No market total effective cannabis tax Hawaii: 5–5% total effective cannabis tax Iowa: No market total effective cannabis tax Idaho: No market total effective cannabis tax Illinois: 19–41% total effective cannabis tax Indiana: No market total effective cannabis tax Kansas: No market total effective cannabis tax Kentucky: No market total effective cannabis tax Louisiana: No market total effective cannabis tax Massachusetts: 17–20% total effective cannabis tax Maryland: 12–12% total effective cannabis tax Maine: 14–14% total effective cannabis tax Michigan: 16–16% total effective cannabis tax Minnesota: 22–23% total effective cannabis tax Missouri: 13–17% total effective cannabis tax Mississippi: 12–12% total effective cannabis tax Montana: 20–23% total effective cannabis tax North Carolina: No market total effective cannabis tax North Dakota: No market total effective cannabis tax Nebraska: No market total effective cannabis tax New Hampshire: No market total effective cannabis tax New Jersey: 7–10% total effective cannabis tax New Mexico: 20–23% total effective cannabis tax Nevada: 20–23% total effective cannabis tax New York: 13–21% total effective cannabis tax Ohio: 17–18% total effective cannabis tax Oklahoma: 16–16% total effective cannabis tax Oregon: 17–20% total effective cannabis tax Pennsylvania: 5–5% total effective cannabis tax Rhode Island: 20–20% total effective cannabis tax South Carolina: No market total effective cannabis tax South Dakota: 6–6% total effective cannabis tax Tennessee: No market total effective cannabis tax Texas: No market total effective cannabis tax Utah: No market total effective cannabis tax Virginia: 12–17% total effective cannabis tax Vermont: 20–21% total effective cannabis tax Washington: 43–47% total effective cannabis tax Wisconsin: No market total effective cannabis tax West Virginia: 10–10% total effective cannabis tax Wyoming: No market total effective cannabis tax
30%+ Total Effective Tax
20–30% Total Effective Tax
10–20% Total Effective Tax
Under 10% Tax
No Legal Cannabis Market
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All States & DC

Alabama AL
Total effective tax
No market
Alaska AK
Total effective tax
8%–13%
Arizona AZ
Total effective tax
22.1%–24.1%
Arkansas AR
Total effective tax
13.5%–13.5%
California CA
Total effective tax
27%–38%
Colorado CO
Total effective tax
20%–30%
Connecticut CT
Total effective tax
20%–26%
Delaware DE
Total effective tax
15%–15%
District of Columbia DC
Total effective tax
6.5%–6.5%
Florida FL
Total effective tax
No market
Georgia GA
Total effective tax
No market
Hawaii HI
Total effective tax
4.5%–4.5%
Idaho ID
Total effective tax
No market
Illinois IL
Total effective tax
19%–41%
Indiana IN
Total effective tax
No market
Iowa IA
Total effective tax
No market
Kansas KS
Total effective tax
No market
Kentucky KY
Total effective tax
No market
Louisiana LA
Total effective tax
No market
Maine ME
Total effective tax
14%–14%
Maryland MD
Total effective tax
12%–12%
Massachusetts MA
Total effective tax
17%–20%
Michigan MI
Total effective tax
16%–16%
Minnesota MN
Total effective tax
22%–23%
Mississippi MS
Total effective tax
12%–12%
Missouri MO
Total effective tax
13%–17%
Montana MT
Total effective tax
20%–23%
Nebraska NE
Total effective tax
No market
Nevada NV
Total effective tax
19.5%–22.5%
New Hampshire NH
Total effective tax
No market
New Jersey NJ
Total effective tax
7%–10%
New Mexico NM
Total effective tax
20%–23%
New York NY
Total effective tax
13%–21%
North Carolina NC
Total effective tax
No market
North Dakota ND
Total effective tax
No market
Ohio OH
Total effective tax
16.5%–17.5%
Oklahoma OK
Total effective tax
16%–16%
Oregon OR
Total effective tax
17%–20%
Pennsylvania PA
Total effective tax
5%–5%
Rhode Island RI
Total effective tax
20%–20%
South Carolina SC
Total effective tax
No market
South Dakota SD
Total effective tax
6.2%–6.2%
Tennessee TN
Total effective tax
No market
Texas TX
Total effective tax
No market
Utah UT
Total effective tax
No market
Vermont VT
Total effective tax
20%–21%
Virginia VA
Total effective tax
12.3%–16.5%
Washington WA
Total effective tax
43%–47%
West Virginia WV
Total effective tax
10%–10%
Wisconsin WI
Total effective tax
No market
Wyoming WY
Total effective tax
No market

Canadian Cannabis Tax Rates

Canada legalized cannabis federally in 2018. Each province adds its own HST or GST+PST on top of the federal excise duty.

Explore Canadian Tax Rates →

How Cannabis Taxes Work in 2026

Cannabis is taxed more heavily than almost any other legal product in the United States. Three tax layers stack on every retail purchase: a state excise tax (often 10–37% of retail), the normal state and local sales tax, and in many cities a separate cannabis business tax collected by the municipality. Washington leads the country with a 37% excise on top of sales tax. California, Nevada, Illinois, and Massachusetts all land between 20–30% once city taxes are included.

Medical cannabis is taxed differently in most states. Registered medical patients are often exempt from the recreational excise tax and sometimes from state sales tax — the difference can be 15 percentage points or more on the same product. Use the calculator to see exactly what a purchase would cost in any state, with or without a medical card.

Frequently Asked Questions

Which US state has the highest cannabis tax?
Washington has the highest combined cannabis tax in the country at roughly 46% once its 37% excise, state sales tax, and typical local sales tax are stacked. California, Illinois, Massachusetts, Colorado, and Nevada regularly land in the 25–35% range once city cannabis business taxes are included.
Which state has the lowest cannabis tax?
Among states with a legal adult-use market, Delaware and New Jersey tend to have the lowest combined effective rate (roughly 7–10%). Washington, DC has no legal adult-use retail market but operates a gifting and medical model with minimal sales tax on medical cannabis.
Why is cannabis taxed so much more than alcohol or tobacco?
States treat cannabis excise taxes as a "sin tax" to cover the cost of regulation, public-health programs, and in some states school or infrastructure funding. Because cannabis is still federally illegal, producers and retailers also can't deduct ordinary business expenses under IRS code §280E, which pushes retail prices (and the effective tax burden on consumers) higher.
Are medical cannabis patients taxed the same as recreational buyers?
Not in most states. Registered medical patients are usually exempt from the recreational excise tax and often from state sales tax — the difference can be 15–25 percentage points on the same product. A handful of states (such as Washington) tax medical and adult-use purchases identically. Use the tax calculator to compare, or check each state page for the medical exemption details.
Can cities charge their own cannabis tax on top of state tax?
Yes. California, Michigan, Massachusetts, and several other states let cities add a local cannabis business tax (usually 3–15%) on top of state excise and sales tax. Los Angeles, Oakland, and Denver all sit at or near the top end. Browse our state pages to see city-level rates for ~105 major US cities.
How much tax will I actually pay on a $100 cannabis purchase?
It depends on the state and city. $100 at a Los Angeles, CA dispensary becomes roughly $134.50 at the register after excise + state sales + city cannabis business tax. The same $100 in Trenton, NJ is closer to $108.63. Use the calculator to model any state or city in seconds.
Do Canadian and US cannabis taxes work the same way?
No. Canada uses a single federal excise duty (~10% baked into producer price) plus provincial HST or GST+PST at retail — combined effective rates run about 15–25%. US states each impose their own excise tax on top of state + local sales tax, and cities can layer additional cannabis business taxes. See our Canada tax hub for a full province-by-province breakdown.
How often do cannabis tax rates change?
Excise rates change by legislation (usually once or twice a year), but city cannabis business taxes can change by local ordinance at any time. Our rates were compiled for 2026 (dataset last updated 2026-08-11), a weekly job checks each state's official revenue-department source page for changes, and every state page links its official source so you can confirm the current rate before relying on it.

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For informational purposes only. Not legal, tax, or financial advice. Rates change frequently — always verify with your state Department of Revenue and consult a licensed tax professional. Read full disclaimer