North Dakota Cannabis Tax Rate
No Legal Cannabis MarketAdministering Agency: North Dakota Office of State Tax Commissioner · Updated for 2026
No legal adult-use retail market Combined effective cannabis tax (excise + state sales + local)
Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| State Cannabis Excise Tax | 0% | No state excise |
| State Sales Tax | 5% | Medical cannabis exempt |
| Typical Local Sales Tax | 1.5% | Average — actual rate varies by city/county |
| Local Cannabis Business Tax | Up to 0% | City-level cannabis-specific tax where allowed |
Official source: North Dakota Office of State Tax Commissioner ↗ · 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 5% state sales tax.
North Dakota Cannabis Tax Notes
North Dakota medical cannabis is exempt from state sales tax. Adult-use ballot measures failed in 2022 and 2024.
City Cannabis Tax Rates in North Dakota
Cities in North Dakota 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 North Dakota?
North Dakota does not have a legal adult-use cannabis retail market, so no recreational cannabis excise tax applies. North Dakota medical cannabis is exempt from state sales tax. Adult-use ballot measures failed in 2022 and 2024.
Does North Dakota exempt medical cannabis from tax?
Qualifying registered medical patients are exempt from the 5% state sales tax.
How much is the state cannabis excise tax in North Dakota?
North Dakota does not currently impose a state-level cannabis excise tax. Cannabis sales are subject to the 5% state sales tax where applicable.
Which agency administers cannabis tax in North Dakota?
Cannabis tax in North Dakota is administered by the North Dakota Office of State Tax Commissioner. Licensed retailers file returns and remit taxes on a regular schedule.