Texas Cannabis Tax Rate
No Legal Cannabis MarketAdministering Agency: Texas Comptroller of Public Accounts · 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 | 6.25% | Applies to medical and adult-use sales |
| Typical Local Sales Tax | 2% | Average — actual rate varies by city/county |
| Local Cannabis Business Tax | Up to 0% | City-level cannabis-specific tax where allowed |
Official source: Texas Comptroller of Public Accounts ↗ · rates compiled 2026-08-11 · verify current rates at the source before filing.
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How Medical Cannabis Is Taxed
There is no cannabis-specific tax exemption for medical patients — medical and adult-use purchases are taxed the same.
Texas Cannabis Tax Notes
Texas operates a Compassionate Use Program (low-THC only, ≤1% THC). No adult-use or full-THC medical market.
City Cannabis Tax Rates in Texas
Cities in Texas 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 Texas?
Texas does not have a legal adult-use cannabis retail market, so no recreational cannabis excise tax applies. Texas operates a Compassionate Use Program (low-THC only, ≤1% THC). No adult-use or full-THC medical market.
Does Texas exempt medical cannabis from tax?
There is no cannabis-specific tax exemption for medical patients — medical and adult-use purchases are taxed the same.
How much is the state cannabis excise tax in Texas?
Texas does not currently impose a state-level cannabis excise tax. Cannabis sales are subject to the 6.25% state sales tax where applicable.
Which agency administers cannabis tax in Texas?
Cannabis tax in Texas is administered by the Texas Comptroller of Public Accounts. Licensed retailers file returns and remit taxes on a regular schedule.