District of Columbia Cannabis Tax Rate

Under 10% Tax

Administering Agency: DC Office of Tax and Revenue · Updated for 2026

6.5% – 6.5% Combined effective cannabis tax (excise + state sales + local)

Tax Breakdown

Tax	Rate	Notes
State Cannabis Excise Tax	0%	No state excise
State Sales Tax	6.5%	Applies to medical and adult-use sales
Typical Local Sales Tax	0%	Average — actual rate varies by city/county
Local Cannabis Business Tax	Up to 0%	City-level cannabis-specific tax where allowed

Official source: DC Office of Tax and Revenue ↗ · rates compiled 2026-08-11 · verify current rates at the source before filing.

Featured product · Cannabis PromotionsAd

Custom Clipper Lighter

As low as $1.40 · Ships in ~5 business days

Refillable Clipper lighters, fully branded.

Get a free quote →

How Medical Cannabis Is Taxed

Medical cannabis sales are taxed at the general sales tax rate (6.5%) — DC does not exempt medical purchases outside its annual 4/20-week tax holiday.

District of Columbia Cannabis Tax Notes

DC allows home grow and gifting under Initiative 71 but has no commercial adult-use retail market. Medical cannabis sales are taxed at the general sales tax rate — 6.5% since October 2025, scheduled to rise to 7% in October 2026 — with an annual 4/20-week sales-tax holiday. Congressional appropriations rider continues to block a commercial recreational program.

City Cannabis Tax Rates in District of Columbia

Cities in District of Columbia 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
Washington	0%	6.5%

Calculate a District of Columbia Purchase → Compare with Another State → District of Columbia Regulations →

Planning compliant packaging for District of Columbia?

Leave your email and our team will send over a free cost sheet for exit bags, labels, and custom accessories for District of Columbia — no obligation.

Frequently Asked Questions

What is the cannabis tax rate in District of Columbia?

The combined effective cannabis tax in District of Columbia ranges from 6.5% to 6.5% depending on the city. That includes a 0% state cannabis excise tax, 6.5% state sales tax, typical local sales tax, and any city cannabis business tax.

Does District of Columbia exempt medical cannabis from tax?

Medical cannabis sales are taxed at the general sales tax rate (6.5%) — DC does not exempt medical purchases outside its annual 4/20-week tax holiday.

How much is the state cannabis excise tax in District of Columbia?

District of Columbia does not currently impose a state-level cannabis excise tax. Cannabis sales are subject to the 6.5% state sales tax where applicable.

Which agency administers cannabis tax in District of Columbia?

Cannabis tax in District of Columbia is administered by the DC Office of Tax and Revenue. Licensed retailers file returns and remit taxes on a regular schedule.

For informational purposes only. Not legal, tax, or financial advice. District of Columbia cannabis tax rates change — always verify with the DC Office of Tax and Revenue and consult a licensed tax professional. Read full disclaimer