Cannabis Tax Hub by Cannabis Promotions

Hawaii Cannabis Tax Rate

Under 10% Tax

Administering Agency: Hawaii Department of Taxation  ·  Updated for 2026

4.5% – 4.5% Combined effective cannabis tax (excise + state sales + local)

Tax Breakdown

TaxRateNotes
State Cannabis Excise Tax4.5%Applied to retail gross receipts
State Sales Tax0%Applies to medical and adult-use sales
Typical Local Sales Tax0%Average — actual rate varies by city/county
Local Cannabis Business TaxUp to 0%City-level cannabis-specific tax where allowed

Official source: Hawaii Department of Taxation ↗ · rates compiled 2026-08-11 · verify current rates at the source before filing.

How Medical Cannabis Is Taxed

There is no cannabis-specific tax exemption for medical patients — medical and adult-use purchases are taxed the same.

Hawaii Cannabis Tax Notes

Hawaii medical cannabis is subject to the 4.5% general excise tax (4% state + 0.5% Oahu surcharge). No adult-use market.

City Cannabis Tax Rates in Hawaii

Cities in Hawaii can layer their own cannabis business tax on top of state taxes. Here are the reported rates for major cities:

CityCity Cannabis TaxTotal Effective Rate
No city-level cannabis business tax reported.
Calculate a Hawaii Purchase → Compare with Another State → Hawaii Regulations →

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Frequently Asked Questions

What is the cannabis tax rate in Hawaii?
The combined effective cannabis tax in Hawaii ranges from 4.5% to 4.5% depending on the city. That includes a 4.5% state cannabis excise tax, 0% state sales tax, typical local sales tax, and any city cannabis business tax.
Does Hawaii 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 Hawaii?
Hawaii imposes a 4.5% 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 Hawaii?
Cannabis tax in Hawaii is administered by the Hawaii Department of Taxation. Licensed retailers file returns and remit taxes on a regular schedule.

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For informational purposes only. Not legal, tax, or financial advice. Hawaii cannabis tax rates change — always verify with the Hawaii Department of Taxation and consult a licensed tax professional. Read full disclaimer