Scottsdale, Arizona Cannabis Tax Rate
25.85% totalAdministering agencies: Arizona Department of Revenue + Scottsdale Finance Department · Updated for 2026
A legal cannabis purchase in Scottsdale is taxed at a combined effective rate of about 25.85%, driven by a 1.75% Scottsdale cannabis business tax stacked on top of Arizona's 16% state excise and 5.6% state sales tax. That makes Scottsdale the 4th-highest-taxed of the 5 major Arizona cities tracked here — versus about 26.7% in Tucson. On a typical $100.00 dispensary purchase that works out to roughly $25.85 in tax, or about $125.85 out the door.
How Much Is Cannabis Tax in Scottsdale?
Use these worked examples to see what Scottsdale's 25.85% combined cannabis tax adds to a dispensary purchase. Figures apply the Arizona state excise, 5.6% state sales tax, typical local sales tax, and the 1.75% Scottsdale cannabis business tax to the pre-tax price.
| Pre-tax price | Total tax | Scottsdale city tax | You pay |
|---|---|---|---|
| $50.00 | $12.93 | $0.88 | $62.92 |
| $100.00 | $25.85 | $1.75 | $125.85 |
| $200.00 | $51.70 | $3.50 | $251.70 |
Estimates treat all taxes as applied to the retail price; actual receipts vary by product, potency tax (where applicable), and exact local sales rate. Model a specific basket with the Scottsdale tax calculator.
Scottsdale Cannabis Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| Arizona Cannabis Excise | 16% | State-imposed retail excise |
| Arizona State Sales Tax | 5.6% | Applies to medical and adult-use sales |
| Typical Local Sales Tax | 2.5% | County / district average |
| Scottsdale Cannabis Business Tax | 1.75% | City-specific cannabis ordinance |
| Combined Effective Rate | 25.85% | What you actually pay at retail |
Official source: Arizona Department of Revenue ↗ · rates compiled 2026-08-11 · city rates set by local ordinance.
How Medical Cannabis Is Taxed in Scottsdale
Medical patients skip the 16% excise and pay only the state/local transaction privilege (sales) tax. In practice that trims roughly $16.00 off every $100.00 spent versus an adult-use purchase in Scottsdale, though the 1.75% Scottsdale cannabis business tax may still apply depending on the local ordinance.
Why Is Cannabis Taxed This Much in Scottsdale?
Cannabis in Scottsdale carries layers of tax that ordinary retail goods never see. Arizona adds its 16% cannabis excise on top of ordinary sales tax, and Scottsdale then collects an additional 1.75% cannabis business tax on licensed retailers — a cost dispensaries pass through to the customer. That stacking is why the register total at a Scottsdale dispensary can run noticeably higher than the same product in a lower-tax Arizona city or across the state line.
16% cannabis excise on adult-use retail + state + local TPT (sales) tax. Medical patients pay only the state/local TPT (no 16% excise).
Scottsdale vs Other Arizona Cities
Local cannabis taxes vary city to city in Arizona. Here is how Scottsdale stacks up against the other major markets we track, ranked from highest to lowest combined effective rate:
| City | City Cannabis Tax | Combined Effective Rate |
|---|---|---|
| Tucson | 2.6% | 26.7% |
| Phoenix | 2.3% | 26.4% |
| Mesa | 2% | 26.1% |
| Scottsdale (this page) | 1.75% | 25.85% |
| Chandler | 1.5% | 25.6% |
See the full Arizona cannabis tax guide →
Frequently Asked Questions
What is the cannabis tax rate in Scottsdale, Arizona?
How much tax will I pay on a $100 cannabis purchase in Scottsdale?
How much is the cannabis business tax in Scottsdale?
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Are medical cannabis patients exempt from Scottsdale's tax?
Where can I buy cannabis in Scottsdale?
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