Oregon Cannabis Tax Rate

10–20% Total Effective Tax

Administering Agency: Oregon Department of Revenue · Updated for 2026

17% – 20% Combined effective cannabis tax (excise + state sales + local)

Tax Breakdown

Tax	Rate	Notes
State Cannabis Excise Tax	17%	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: Oregon 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

Qualifying registered medical patients are exempt from the 17% state cannabis excise. On a $100 pre-tax purchase that's roughly $17.00 less than an adult-use sale (before any local taxes, which vary by ordinance).

Oregon Cannabis Tax Notes

Oregon has no statewide sales tax. 17% state cannabis tax on retail, plus up to 3% local option cannabis tax. OMMP medical patients are exempt from the 17% state tax on designated products.

City Cannabis Tax Rates in Oregon

Cities in Oregon 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
Portland	3%	20%
Eugene	3%	20%
Salem	3%	20%
Bend	3%	20%

Calculate a Oregon Purchase → Compare with Another State → Oregon Regulations →

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Frequently Asked Questions

What is the cannabis tax rate in Oregon?

The combined effective cannabis tax in Oregon ranges from 17% to 20% depending on the city. That includes a 17% state cannabis excise tax, 0% state sales tax, typical local sales tax, and any city cannabis business tax.

Does Oregon exempt medical cannabis from tax?

Qualifying registered medical patients are exempt from the 17% state cannabis excise. That works out to roughly $17.00 less per $100 pre-tax than an adult-use purchase, before any local taxes.

How much is the state cannabis excise tax in Oregon?

Oregon imposes a 17% state cannabis excise tax on retail purchases. This is collected in addition to state sales tax and any local cannabis business taxes.

Can cities add their own cannabis tax in Oregon?

Yes. Oregon cities can add a local cannabis business tax up to approximately 3% on top of state taxes. Major cities often use close to the maximum allowed rate.

Which agency administers cannabis tax in Oregon?

Cannabis tax in Oregon is administered by the Oregon Department of Revenue. Licensed retailers file returns and remit taxes on a regular schedule.

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