Duluth, Minnesota Cannabis Tax Rate
22.88% totalAdministering agencies: Minnesota Department of Revenue · Updated for 2026
A legal cannabis purchase in Duluth is taxed at a combined effective rate of about 22.88% — all of it from Minnesota's state-level taxes, since Duluth does not add a local cannabis tax. Every major Minnesota city tracked here carries the same combined rate, because Minnesota does not let cities add their own cannabis tax on top of the state rate. On a typical $100.00 dispensary purchase that works out to roughly $22.88 in tax, or about $122.88 out the door.
How Much Is Cannabis Tax in Duluth?
Use these worked examples to see what Duluth's 22.88% combined cannabis tax adds to a dispensary purchase. Figures apply the Minnesota state excise, 6.88% state sales tax, typical local sales tax to the pre-tax price.
| Pre-tax price | Total tax | Duluth city tax | You pay |
|---|---|---|---|
| $50.00 | $11.44 | $0.00 | $61.44 |
| $100.00 | $22.88 | $0.00 | $122.88 |
| $200.00 | $45.75 | $0.00 | $245.75 |
Estimates treat all taxes as applied to the retail price; actual receipts vary by product, potency tax (where applicable), and exact local sales rate. Model a specific basket with the Duluth tax calculator.
Duluth Cannabis Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| Minnesota Cannabis Excise | 15% | State-imposed retail excise |
| Minnesota State Sales Tax | 6.88% | Medical cannabis exempt |
| Typical Local Sales Tax | 1% | County / district average |
| Duluth Cannabis Business Tax | 0% | No city cannabis tax levied |
| Combined Effective Rate | 22.88% | What you actually pay at retail |
Official source: Minnesota Department of Revenue ↗ · rates compiled 2026-08-11 · city rates set by local ordinance.
How Medical Cannabis Is Taxed in Duluth
Qualifying registered medical patients are exempt from the 15% state cannabis excise and the 6.88% state sales tax. In practice that trims roughly $21.88 off every $100.00 spent versus an adult-use purchase in Duluth.
Why Is Cannabis Taxed This Much in Duluth?
Cannabis in Duluth carries layers of tax that ordinary retail goods never see. Minnesota adds its 15% cannabis excise on top of ordinary sales tax. Because Duluth does not add a local cannabis tax, shoppers here pay only the Minnesota state-level taxes — which keeps Duluth on the lower-cost end of the Minnesota market.
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.
Duluth vs Other Minnesota Cities
Minnesota keeps local cannabis taxes uniform, so the combined rate in Duluth matches the other major cities below — the main cost difference between them comes down to base dispensary pricing, not tax.
| City | City Cannabis Tax | Combined Effective Rate |
|---|---|---|
| Minneapolis | 0% | 22.88% |
| Saint Paul | 0% | 22.88% |
| Rochester | 0% | 22.88% |
| Duluth (this page) | 0% | 22.88% |
See the full Minnesota cannabis tax guide →
Frequently Asked Questions
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