Arkansas Cannabis Tax Rate
10–20% Total Effective TaxAdministering Agency: Arkansas Department of Finance and Administration · Updated for 2026
13.5% – 13.5% Combined effective cannabis tax (excise + state sales + local)
Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| State Cannabis Excise Tax | 4% | Applied to retail gross receipts |
| State Sales Tax | 6.5% | Applies to medical and adult-use sales |
| Typical Local Sales Tax | 3% | Average — actual rate varies by city/county |
| Local Cannabis Business Tax | Up to 0% | City-level cannabis-specific tax where allowed |
Official source: Arkansas Department of Finance and Administration ↗ · rates compiled 2026-08-11 · verify current rates at the source before filing.
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How Medical Cannabis Is Taxed
There is no cannabis-specific tax exemption for medical patients — medical and adult-use purchases are taxed the same.
Arkansas Cannabis Tax Notes
Arkansas imposes a 4% privilege tax on medical cannabis sales in addition to state + local sales tax. No adult-use market.
City Cannabis Tax Rates in Arkansas
Cities in Arkansas can layer their own cannabis business tax on top of state taxes. Here are the reported rates for major cities:
| City | City Cannabis Tax | Total Effective Rate |
|---|---|---|
| No city-level cannabis business tax reported. | ||
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Frequently Asked Questions
What is the cannabis tax rate in Arkansas?
The combined effective cannabis tax in Arkansas ranges from 13.5% to 13.5% depending on the city. That includes a 4% state cannabis excise tax, 6.5% state sales tax, typical local sales tax, and any city cannabis business tax.
Does Arkansas exempt medical cannabis from tax?
There is no cannabis-specific tax exemption for medical patients — medical and adult-use purchases are taxed the same.
How much is the state cannabis excise tax in Arkansas?
Arkansas imposes a 4% state cannabis excise tax on retail purchases. This is collected in addition to state sales tax and any local cannabis business taxes.
Which agency administers cannabis tax in Arkansas?
Cannabis tax in Arkansas is administered by the Arkansas Department of Finance and Administration. Licensed retailers file returns and remit taxes on a regular schedule.