Minnesota Cannabis Tax Rate
20–30% Total Effective TaxAdministering Agency: Minnesota Department of Revenue · Updated for 2026
Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| State Cannabis Excise Tax | 15% | Applied to retail gross receipts |
| State Sales Tax | 6.88% | Medical cannabis exempt |
| Typical Local Sales Tax | 1% | Average — actual rate varies by city/county |
| Local Cannabis Business Tax | Up to 0% | City-level cannabis-specific tax where allowed |
Official source: Minnesota Department of Revenue ↗ · 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 15% state cannabis excise and the 6.88% state sales tax. On a $100 pre-tax purchase that's roughly $21.88 less than an adult-use sale (before any local taxes, which vary by ordinance).
Minnesota Cannabis Tax Notes
15% state cannabis gross-receipts tax on adult-use retail — raised from 10% effective July 1, 2025 — plus 6.875% state sales + local sales tax. Medical cannabis (Office of Medical Cannabis) is exempt.
City Cannabis Tax Rates in Minnesota
Cities in Minnesota 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 |
|---|---|---|
| Minneapolis | 0% | 22.88% |
| Saint Paul | 0% | 22.88% |
| Rochester | 0% | 22.88% |
| Duluth | 0% | 22.88% |
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