Washington Cannabis Tax Rate
30%+ Total Effective TaxAdministering Agency: Washington State Liquor and Cannabis Board · Updated for 2026
Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| State Cannabis Excise Tax | 37% | Applied to retail gross receipts |
| State Sales Tax | 6.5% | Medical cannabis exempt |
| Typical Local Sales Tax | 2.5% | Average — actual rate varies by city/county |
| Local Cannabis Business Tax | Up to 0% | City-level cannabis-specific tax where allowed |
Official source: Washington State Liquor and Cannabis Board ↗ · rates compiled 2026-08-11 · verify current rates at the source before filing.
How Medical Cannabis Is Taxed
Qualifying registered medical patients are exempt from the 37% state cannabis excise and the 6.5% state sales tax. On a $100 pre-tax purchase that's roughly $43.50 less than an adult-use sale (before any local taxes, which vary by ordinance).
Washington Cannabis Tax Notes
37% cannabis excise tax — the highest in the nation — on top of state + local sales tax. Qualifying medical patients registered in the DOH database are exempt from the 37% excise and from state/local sales tax on compliant products.
City Cannabis Tax Rates in Washington
Cities in Washington 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 |
|---|---|---|
| Seattle | 0% | 46% |
| Spokane | 0% | 46% |
| Tacoma | 0% | 46% |
| Bellevue | 0% | 46% |
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