Denver, Colorado Cannabis Tax Rate
27.9% totalAdministering agencies: Colorado Department of Revenue — Marijuana Enforcement Division + Denver Finance Department · Updated for 2026
A legal cannabis purchase in Denver is taxed at a combined effective rate of about 27.9%, driven by a 5.5% Denver cannabis business tax stacked on top of Colorado's 15% state excise and 2.9% state sales tax. That makes Denver the highest-taxed of the 5 major Colorado cities tracked here — versus about 22.4% in Colorado Springs. On a typical $100.00 dispensary purchase that works out to roughly $27.90 in tax, or about $127.90 out the door.
Denver is Colorado’s capital and largest city and one of the most established adult-use cannabis markets in the country, adding local cannabis sales taxes on top of the state’s 15% retail marijuana tax.
How Much Is Cannabis Tax in Denver?
Use these worked examples to see what Denver's 27.9% combined cannabis tax adds to a dispensary purchase. Figures apply the Colorado state excise, 2.9% state sales tax, typical local sales tax, and the 5.5% Denver cannabis business tax to the pre-tax price.
| Pre-tax price | Total tax | Denver city tax | You pay |
|---|---|---|---|
| $50.00 | $13.95 | $2.75 | $63.95 |
| $100.00 | $27.90 | $5.50 | $127.90 |
| $200.00 | $55.80 | $11.00 | $255.80 |
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 Denver tax calculator.
Denver Cannabis Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| Colorado Cannabis Excise | 15% | State-imposed retail excise |
| Wholesale / Cultivation Excise | 15% | Imposed upstream; embedded in retail price |
| Colorado State Sales Tax | 2.9% | Applies to medical and adult-use sales |
| Typical Local Sales Tax | 4.5% | County / district average |
| Denver Cannabis Business Tax | 5.5% | City-specific cannabis ordinance |
| Combined Effective Rate | 27.9% | What you actually pay at retail |
Official source: Colorado Department of Revenue — Marijuana Enforcement Division ↗ · rates compiled 2026-08-11 · city rates set by local ordinance.
How Medical Cannabis Is Taxed in Denver
Medical cannabis is exempt from the 15% retail marijuana tax and pays only the standard 2.9% state sales tax plus any local tax. In practice that trims roughly $15.00 off every $100.00 spent versus an adult-use purchase in Denver, though the 5.5% Denver cannabis business tax may still apply depending on the local ordinance.
Why Is Cannabis Taxed This Much in Denver?
Cannabis in Denver carries layers of tax that ordinary retail goods never see. Colorado adds its 15% cannabis excise, a 15% wholesale/cultivation excise that is baked into shelf prices, on top of ordinary sales tax, and Denver then collects an additional 5.5% cannabis business tax on licensed retailers — a cost dispensaries pass through to the customer. That stacking is why the register total at a Denver dispensary can run noticeably higher than the same product in a lower-tax Colorado city or across the state line.
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.
Denver vs Other Colorado Cities
Local cannabis taxes vary city to city in Colorado. Here is how Denver stacks up against the other major markets we track, ranked from highest to lowest combined effective rate:
| City | City Cannabis Tax | Combined Effective Rate |
|---|---|---|
| Denver (this page) | 5.5% | 27.9% |
| Aurora | 5.5% | 27.9% |
| Pueblo | 5% | 27.4% |
| Boulder | 3.5% | 25.9% |
| Colorado Springs | 0% | 22.4% |
See the full Colorado cannabis tax guide →
Frequently Asked Questions
What is the cannabis tax rate in Denver, Colorado?
How much tax will I pay on a $100 cannabis purchase in Denver?
How much is the cannabis business tax in Denver?
Does Denver have the lowest cannabis tax in Colorado?
Are medical cannabis patients exempt from Denver's tax?
Where can I buy cannabis in Denver?
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