Medical cannabis is exempt from state sales tax; the 5% gross receipts tax is imposed at the grower/processor level and passed through in pricing.
Pennsylvania Cannabis Tax Notes
Pennsylvania imposes a 5% gross receipts tax on medical cannabis (at the grower/processor level, passed through to consumers). Medical cannabis is exempt from state sales tax.
City Cannabis Tax Rates in Pennsylvania
Cities in Pennsylvania can layer their own cannabis business tax on top of state taxes. Here are the reported rates for major cities:
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Frequently Asked Questions
What is the cannabis tax rate in Pennsylvania?
The combined effective cannabis tax in Pennsylvania ranges from 5% to 5% depending on the city. That includes a 5% state cannabis excise tax, 0% state sales tax, typical local sales tax, and any city cannabis business tax.
Does Pennsylvania exempt medical cannabis from tax?
Medical cannabis is exempt from state sales tax; the 5% gross receipts tax is imposed at the grower/processor level and passed through in pricing.
How much is the state cannabis excise tax in Pennsylvania?
Pennsylvania imposes a 5% state cannabis excise tax on retail purchases. This is collected in addition to state sales tax and any local cannabis business taxes.
Which agency administers cannabis tax in Pennsylvania?
Cannabis tax in Pennsylvania is administered by the Pennsylvania Department of Revenue. Licensed retailers file returns and remit taxes on a regular schedule.
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For informational purposes only. Not legal, tax, or financial advice. Pennsylvania cannabis tax rates change — always verify with the Pennsylvania Department of Revenue and consult a licensed tax professional. Read full disclaimer
