Colorado Cannabis Tax Rate
20–30% Total Effective TaxAdministering Agency: Colorado Department of Revenue — Marijuana Enforcement Division · Updated for 2026
Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| State Cannabis Excise Tax | 15% | Applied to retail gross receipts |
| Wholesale / Cultivation Excise | 15% | Imposed upstream; typically embedded in retail price |
| State Sales Tax | 2.9% | Applies to medical and adult-use sales |
| Typical Local Sales Tax | 4.5% | Average — actual rate varies by city/county |
| Local Cannabis Business Tax | Up to 8% | City-level cannabis-specific tax where allowed |
Official source: Colorado Department of Revenue — Marijuana Enforcement Division ↗ · rates compiled 2026-08-11 · verify current rates at the source before filing.
How Medical Cannabis Is Taxed
Medical cannabis is exempt from the 15% retail marijuana tax and pays only the standard 2.9% state sales tax plus any local tax. On a $100 pre-tax purchase that's roughly $15.00 less than an adult-use sale (before any local taxes, which vary by ordinance).
Colorado Cannabis Tax Notes
15% special marijuana sales tax on retail + 15% wholesale excise (on fair market rate set quarterly by DOR). Medical cannabis is exempt from the 15% retail tax and pays only the standard 2.9% state sales tax. Local jurisdictions can add their own cannabis sales taxes.
City Cannabis Tax Rates in Colorado
Cities in Colorado can layer their own cannabis business tax on top of state taxes. Here are the reported rates for major cities — use the tax calculator to model a specific purchase:
| City | City Cannabis Tax | Total Effective Rate |
|---|---|---|
| Denver | 5.5% | 27.9% |
| Aurora | 5.5% | 27.9% |
| Colorado Springs | 0% | 22.4% |
| Boulder | 3.5% | 25.9% |
| Pueblo | 5% | 27.4% |
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