South Burlington, Vermont Cannabis Tax Rate
22% totalAdministering agencies: Vermont Department of Taxes + South Burlington Finance Department · Updated for 2026
A legal cannabis purchase in South Burlington is taxed at a combined effective rate of about 22%, driven by a 1% South Burlington cannabis business tax stacked on top of Vermont's 14% state excise and 6% state sales tax. That makes South Burlington the highest-taxed of the 4 major Vermont cities tracked here — versus about 21% in Montpelier. On a typical $100.00 dispensary purchase that works out to roughly $22.00 in tax, or about $122.00 out the door.
How Much Is Cannabis Tax in South Burlington?
Use these worked examples to see what South Burlington's 22% combined cannabis tax adds to a dispensary purchase. Figures apply the Vermont state excise, 6% state sales tax, typical local sales tax, and the 1% South Burlington cannabis business tax to the pre-tax price.
| Pre-tax price | Total tax | South Burlington city tax | You pay |
|---|---|---|---|
| $50.00 | $11.00 | $0.50 | $61.00 |
| $100.00 | $22.00 | $1.00 | $122.00 |
| $200.00 | $44.00 | $2.00 | $244.00 |
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 South Burlington tax calculator.
South Burlington 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 |
| South Burlington Cannabis Business Tax | 1% | City-specific cannabis ordinance |
| Combined Effective Rate | 22% | 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 South Burlington
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 South Burlington, though the 1% South Burlington cannabis business tax may still apply depending on the local ordinance.
Why Is Cannabis Taxed This Much in South Burlington?
Cannabis in South Burlington carries layers of tax that ordinary retail goods never see. Vermont adds its 14% cannabis excise on top of ordinary sales tax, and South Burlington then collects an additional 1% cannabis business tax on licensed retailers — a cost dispensaries pass through to the customer. That stacking is why the register total at a South Burlington dispensary can run noticeably higher than the same product in a lower-tax Vermont city or across the state line.
14% state cannabis excise on retail + 6% state sales + local 1% option tax where adopted. Medical cannabis is exempt from the 14% excise.
South Burlington vs Other Vermont Cities
Local cannabis taxes vary city to city in Vermont. Here is how South Burlington 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 (this page) | 1% | 22% |
| Montpelier | 0% | 21% |
| Rutland | 0% | 21% |
See the full Vermont cannabis tax guide →
Frequently Asked Questions
What is the cannabis tax rate in South Burlington, Vermont?
How much tax will I pay on a $100 cannabis purchase in South Burlington?
How much is the cannabis business tax in South Burlington?
Does South Burlington have the lowest cannabis tax in Vermont?
Are medical cannabis patients exempt from South Burlington's tax?
Where can I buy cannabis in South Burlington?
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