Maryland Cannabis Tax Rate
10–20% Total Effective TaxAdministering Agency: Comptroller of Maryland · Updated for 2026
Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| State Cannabis Excise Tax | 12% | Applied to retail gross receipts |
| State Sales Tax | 0% | 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: Comptroller of Maryland ↗ · rates compiled 2026-08-11 · verify current rates at the source before filing.
How Medical Cannabis Is Taxed
Qualifying registered medical patients are exempt from the 12% state cannabis excise. On a $100 pre-tax purchase that's roughly $12.00 less than an adult-use sale (before any local taxes, which vary by ordinance).
Maryland Cannabis Tax Notes
Maryland imposes a 12% sales and use tax on adult-use cannabis — raised from 9% on July 1, 2025 by the Budget Reconciliation and Financing Act, with scheduled steps to 13% in 2027 and 15% by 2030. No additional excise tax. Medical cannabis is exempt. No local cannabis tax is allowed.
City Cannabis Tax Rates in Maryland
Cities in Maryland 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 |
|---|---|---|
| Baltimore | 0% | 12% |
| Frederick | 0% | 12% |
| Rockville | 0% | 12% |
| Gaithersburg | 0% | 12% |
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