Vermont Cannabis Tax Rate

20–30% Total Effective Tax

Administering Agency: Vermont Department of Taxes · Updated for 2026

20% – 21% Combined effective cannabis tax (excise + state sales + local)

Tax Breakdown

Tax	Rate	Notes
State Cannabis Excise Tax	14%	Applied to retail gross receipts
State Sales Tax	6%	Applies to medical and adult-use sales
Typical Local Sales Tax	1%	Average — actual rate varies by city/county
Local Cannabis Business Tax	Up to 0%	City-level cannabis-specific tax where allowed

Official source: Vermont Department of Taxes ↗ · rates compiled 2026-08-11 · verify current rates at the source before filing.

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How Medical Cannabis Is Taxed

Medical cannabis is exempt from the 14% state excise; the 6% state sales tax still applies. On a $100 pre-tax purchase that's roughly $14.00 less than an adult-use sale (before any local taxes, which vary by ordinance).

Vermont Cannabis Tax Notes

14% state cannabis excise on retail + 6% state sales + local 1% option tax where adopted. Medical cannabis is exempt from the 14% excise.

City Cannabis Tax Rates in Vermont

Cities in Vermont 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
Burlington	1%	22%
Montpelier	0%	21%
Rutland	0%	21%
South Burlington	1%	22%

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

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Frequently Asked Questions

What is the cannabis tax rate in Vermont?

The combined effective cannabis tax in Vermont ranges from 20% to 21% depending on the city. That includes a 14% state cannabis excise tax, 6% state sales tax, typical local sales tax, and any city cannabis business tax.

Does Vermont exempt medical cannabis from tax?

Medical cannabis is exempt from the 14% state excise; the 6% state sales tax still applies. That works out to roughly $14.00 less per $100 pre-tax than an adult-use purchase, before any local taxes.

How much is the state cannabis excise tax in Vermont?

Vermont imposes a 14% 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 Vermont?

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

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