Montpelier, Vermont Cannabis Tax Rate
21% totalAdministering agencies: Vermont Department of Taxes · Updated for 2026
A legal cannabis purchase in Montpelier is taxed at a combined effective rate of about 21% — all of it from Vermont's state-level taxes, since Montpelier does not add a local cannabis tax. That makes Montpelier the 3rd-highest-taxed of the 4 major Vermont cities tracked here — versus about 22% in Burlington. On a typical $100.00 dispensary purchase that works out to roughly $21.00 in tax, or about $121.00 out the door.
How Much Is Cannabis Tax in Montpelier?
Use these worked examples to see what Montpelier's 21% combined cannabis tax adds to a dispensary purchase. Figures apply the Vermont state excise, 6% state sales tax, typical local sales tax to the pre-tax price.
| Pre-tax price | Total tax | Montpelier city tax | You pay |
|---|---|---|---|
| $50.00 | $10.50 | $0.00 | $60.50 |
| $100.00 | $21.00 | $0.00 | $121.00 |
| $200.00 | $42.00 | $0.00 | $242.00 |
Estimates treat all taxes as applied to the retail price; actual receipts vary by product, potency tax (where applicable), and exact local sales rate. Model a specific basket with the Montpelier tax calculator.
Montpelier Cannabis Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| Vermont Cannabis Excise | 14% | State-imposed retail excise |
| Vermont State Sales Tax | 6% | Applies to medical and adult-use sales |
| Typical Local Sales Tax | 1% | County / district average |
| Montpelier Cannabis Business Tax | 0% | No city cannabis tax levied |
| Combined Effective Rate | 21% | What you actually pay at retail |
Official source: Vermont Department of Taxes ↗ · rates compiled 2026-08-11 · city rates set by local ordinance.
How Medical Cannabis Is Taxed in Montpelier
Medical cannabis is exempt from the 14% state excise; the 6% state sales tax still applies. In practice that trims roughly $14.00 off every $100.00 spent versus an adult-use purchase in Montpelier.
Why Is Cannabis Taxed This Much in Montpelier?
Cannabis in Montpelier carries layers of tax that ordinary retail goods never see. Vermont adds its 14% cannabis excise on top of ordinary sales tax. Because Montpelier does not add a local cannabis tax, shoppers here pay only the Vermont state-level taxes — which keeps Montpelier on the lower-cost end of the Vermont market.
14% state cannabis excise on retail + 6% state sales + local 1% option tax where adopted. Medical cannabis is exempt from the 14% excise.
Montpelier vs Other Vermont Cities
Local cannabis taxes vary city to city in Vermont. Here is how Montpelier stacks up against the other major markets we track, ranked from highest to lowest combined effective rate:
| City | City Cannabis Tax | Combined Effective Rate |
|---|---|---|
| Burlington | 1% | 22% |
| South Burlington | 1% | 22% |
| Montpelier (this page) | 0% | 21% |
| Rutland | 0% | 21% |
See the full Vermont cannabis tax guide →
Frequently Asked Questions
What is the cannabis tax rate in Montpelier, Vermont?
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How much is the cannabis business tax in Montpelier?
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Are medical cannabis patients exempt from Montpelier's tax?
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