Virginia Cannabis Tax Rate

10–20% Total Effective Tax

Administering Agency: Virginia Department of Taxation · Updated for 2026

12.3% – 16.5% Combined effective cannabis tax (excise + state sales + local)

Tax Breakdown

Tax	Rate	Notes
State Cannabis Excise Tax	6%	Applied to retail gross receipts
State Sales Tax	5.3%	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 3.5%	City-level cannabis-specific tax where allowed

Official source: Virginia Department of Taxation ↗ · 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 6% retail marijuana excise that takes effect when adult-use sales begin (July 2027); state sales tax rules still apply. On a $100 pre-tax purchase that's roughly $6.00 less than an adult-use sale (before any local taxes, which vary by ordinance).

Virginia Cannabis Tax Notes

Virginia legalized adult possession in 2021, and 2026 budget legislation finally authorizes retail sales beginning July 1, 2027. The enacted framework sets a 6% state cannabis excise (rising to 8% in July 2029) + 5.3% state sales tax + a local option excise of 1–3.5%, for a combined 12.3%–16.5% depending on locality. Until sales begin there is no legal adult-use retail market. Medical cannabis is exempt from the excise.

City Cannabis Tax Rates in Virginia

Cities in Virginia 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
Virginia Beach	3%	15.3%
Richmond	3%	15.3%
Norfolk	3%	15.3%
Arlington	3%	15.3%

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

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Frequently Asked Questions

What is the cannabis tax rate in Virginia?

The combined effective cannabis tax in Virginia ranges from 12.3% to 16.5% depending on the city. That includes a 6% state cannabis excise tax, 5.3% state sales tax, typical local sales tax, and any city cannabis business tax.

Does Virginia exempt medical cannabis from tax?

Medical cannabis is exempt from the 6% retail marijuana excise that takes effect when adult-use sales begin (July 2027); state sales tax rules still apply. That works out to roughly $6.00 less per $100 pre-tax than an adult-use purchase, before any local taxes.

How much is the state cannabis excise tax in Virginia?

Virginia imposes a 6% state cannabis excise tax on retail purchases. This is collected in addition to state sales tax and any local cannabis business taxes.

Can cities add their own cannabis tax in Virginia?

Yes. Virginia cities can add a local cannabis business tax up to approximately 3.5% on top of state taxes. Major cities often use close to the maximum allowed rate.

Which agency administers cannabis tax in Virginia?

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

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