Qualifying registered medical patients are exempt from the 10.75% state cannabis excise and the 6.25% state sales tax. On a $100 pre-tax purchase that's roughly $17.00 less than an adult-use sale (before any local taxes, which vary by ordinance).
Massachusetts Cannabis Tax Notes
10.75% state cannabis excise + 6.25% state sales tax + up to 3% local option tax. Medical marijuana is exempt from all three.
City Cannabis Tax Rates in Massachusetts
Cities in Massachusetts 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:
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Frequently Asked Questions
What is the cannabis tax rate in Massachusetts?
The combined effective cannabis tax in Massachusetts ranges from 17% to 20% depending on the city. That includes a 10.75% state cannabis excise tax, 6.25% state sales tax, typical local sales tax, and any city cannabis business tax.
Does Massachusetts exempt medical cannabis from tax?
Qualifying registered medical patients are exempt from the 10.75% state cannabis excise and the 6.25% state sales tax. That works out to roughly $17.00 less per $100 pre-tax than an adult-use purchase, before any local taxes.
How much is the state cannabis excise tax in Massachusetts?
Massachusetts imposes a 10.75% state cannabis excise tax on retail purchases. This is collected in addition to state sales tax and any local cannabis business taxes.
Can cities add their own cannabis tax in Massachusetts?
Yes. Massachusetts cities can add a local cannabis business tax up to approximately 3% on top of state taxes. Major cities often use close to the maximum allowed rate.
Which agency administers cannabis tax in Massachusetts?
Cannabis tax in Massachusetts is administered by the Massachusetts Department of Revenue. 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. Massachusetts cannabis tax rates change — always verify with the Massachusetts Department of Revenue and consult a licensed tax professional. Read full disclaimer
