Montana Cannabis Tax Rate
20–30% Total Effective TaxAdministering Agency: Montana Department of Revenue · Updated for 2026
Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| State Cannabis Excise Tax | 20% | 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 3% | City-level cannabis-specific tax where allowed |
Official source: Montana Department of Revenue ↗ · rates compiled 2026-08-11 · verify current rates at the source before filing.
How Medical Cannabis Is Taxed
Medical cannabis pays a reduced 4% state tax instead of the 20% adult-use rate (Montana has no general sales tax). On a $100 pre-tax purchase that's roughly $16.00 less than an adult-use sale (before any local taxes, which vary by ordinance).
Montana Cannabis Tax Notes
20% state cannabis tax on adult-use retail (Montana has no statewide sales tax), with counties allowed to add up to 3% local option. Medical cannabis pays a reduced 4% state tax.
City Cannabis Tax Rates in Montana
Cities in Montana 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 |
|---|---|---|
| Billings | 3% | 23% |
| Missoula | 3% | 23% |
| Bozeman | 3% | 23% |
| Great Falls | 3% | 23% |
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