Mississippi Cannabis Tax Rate
10–20% Total Effective TaxAdministering Agency: Mississippi Department of Revenue · Updated for 2026
12% – 12% Combined effective cannabis tax (excise + state sales + local)
Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| State Cannabis Excise Tax | 5% | Applied to retail gross receipts |
| State Sales Tax | 7% | 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: Mississippi Department of Revenue ↗ · rates compiled 2026-08-11 · verify current rates at the source before filing.
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How Medical Cannabis Is Taxed
There is no cannabis-specific tax exemption for medical patients — medical and adult-use purchases are taxed the same.
Mississippi Cannabis Tax Notes
Mississippi imposes a 5% medical cannabis excise tax in addition to the 7% state sales tax. No adult-use market.
City Cannabis Tax Rates in Mississippi
Cities in Mississippi can layer their own cannabis business tax on top of state taxes. Here are the reported rates for major cities:
| City | City Cannabis Tax | Total Effective Rate |
|---|---|---|
| No city-level cannabis business tax reported. | ||
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Frequently Asked Questions
What is the cannabis tax rate in Mississippi?
The combined effective cannabis tax in Mississippi ranges from 12% to 12% depending on the city. That includes a 5% state cannabis excise tax, 7% state sales tax, typical local sales tax, and any city cannabis business tax.
Does Mississippi 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 Mississippi?
Mississippi imposes a 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 Mississippi?
Cannabis tax in Mississippi is administered by the Mississippi Department of Revenue. Licensed retailers file returns and remit taxes on a regular schedule.