New Jersey Cannabis Tax Rate

Under 10% Tax

Administering Agency: New Jersey Division of Taxation · Updated for 2026

7% – 10% Combined effective cannabis tax (excise + state sales + local)

Tax Breakdown

Tax	Rate	Notes
State Cannabis Excise Tax	0%	No state excise
State Sales Tax	6.63%	Medical cannabis exempt
Typical Local Sales Tax	0%	Average — actual rate varies by city/county
Local Cannabis Business Tax	Up to 2%	City-level cannabis-specific tax where allowed

Official source: New Jersey Division of Taxation ↗ · rates compiled 2026-08-11 · verify current rates at the source before filing.

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How Medical Cannabis Is Taxed

Qualifying registered medical patients are exempt from the 6.63% state sales tax. On a $100 pre-tax purchase that's roughly $6.63 less than an adult-use sale (before any local taxes, which vary by ordinance).

New Jersey Cannabis Tax Notes

New Jersey taxes adult-use cannabis at 6.625% state sales + up to 2% local Transfer Tax + the CRC Social Equity Excise Fee (reset annually — ~$2.50/oz in 2026). Medical cannabis is exempt from sales tax.

City Cannabis Tax Rates in New Jersey

Cities in New Jersey 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
Newark	2%	8.63%
Jersey City	2%	8.63%
Paterson	2%	8.63%
Elizabeth	2%	8.63%
Trenton	2%	8.63%

Calculate a New Jersey Purchase → Compare with Another State → New Jersey Regulations →

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Frequently Asked Questions

What is the cannabis tax rate in New Jersey?

The combined effective cannabis tax in New Jersey ranges from 7% to 10% depending on the city. That includes a 0% state cannabis excise tax, 6.63% state sales tax, typical local sales tax, and any city cannabis business tax.

Does New Jersey exempt medical cannabis from tax?

Qualifying registered medical patients are exempt from the 6.63% state sales tax. That works out to roughly $6.63 less per $100 pre-tax than an adult-use purchase, before any local taxes.

How much is the state cannabis excise tax in New Jersey?

New Jersey does not currently impose a state-level cannabis excise tax. Cannabis sales are subject to the 6.63% state sales tax where applicable.

Can cities add their own cannabis tax in New Jersey?

Yes. New Jersey cities can add a local cannabis business tax up to approximately 2% on top of state taxes. Major cities often use close to the maximum allowed rate.

Which agency administers cannabis tax in New Jersey?

Cannabis tax in New Jersey is administered by the New Jersey Division of Taxation. Licensed retailers file returns and remit taxes on a regular schedule.

For informational purposes only. Not legal, tax, or financial advice. New Jersey cannabis tax rates change — always verify with the New Jersey Division of Taxation and consult a licensed tax professional. Read full disclaimer