New York Cannabis Tax Rate
10–20% Total Effective TaxAdministering Agency: New York Department of Taxation and Finance · Updated for 2026
Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| State Cannabis Excise Tax | 9% | Applied to retail gross receipts |
| State Sales Tax | 4% | Applies to medical and adult-use sales |
| Typical Local Sales Tax | 4.5% | Average — actual rate varies by city/county |
| Local Cannabis Business Tax | Up to 4% | City-level cannabis-specific tax where allowed |
Official source: New York Department of Taxation and Finance ↗ · rates compiled 2026-08-11 · verify current rates at the source before filing.
How Medical Cannabis Is Taxed
Medical cannabis is exempt from the 9% state cannabis excise. On a $100 pre-tax purchase that's roughly $9.00 less than an adult-use sale (before any local taxes, which vary by ordinance).
New York Cannabis Tax Notes
9% state cannabis excise + 4% local cannabis excise + state/local sales tax. A THC-potency tax was replaced in 2024 with the current ad-valorem model. Medical cannabis is exempt from the excise tax.
City Cannabis Tax Rates in New York
Cities in New York 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 |
|---|---|---|
| New York City | 4% | 21.5% |
| Buffalo | 4% | 21.5% |
| Rochester | 4% | 21.5% |
| Syracuse | 4% | 21.5% |
| Albany | 4% | 21.5% |
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