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State cannabis tax obligation rates vary from 6 percent in Missouri to 37 percent in Washington. Regional marijuana taxes are usually capped by the state and collection between 2 percent as well as 5 percent. The percentage-of-price tax is the most preferred tax on cannabis. 10 states solely use this kind of tax as well as 5 states utilize it in enhancement to an additional tax.

Tax computations differ throughout these states, however in every state the grower (i. e., marijuana farmer) is liable for paying the tax obligation to the federal government, as well as in every state but New Jersey different parts of the plant are taxed at various prices (e.

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Potency-based. A potency-based tax is calculated based on the marijuana product's degree of tetrahydrocannabinol (THC), the key psychoactive compound in marijuana (dispensary denver).


Regional governments can also impose an excise tax on cannabissome levy a percentage-of-price tax obligation and also others levy a weight-based tax obligation. Lawful sales started in October 2016.: The state levies a 16 percent excise tax obligation on cannabis sales that is paid by customers as well as remitted by merchants. There are no regional cannabis tax obligations in Arizona.


: The state levies a 15 percent excise tax obligation on cannabis sales that is paid by customers and remitted by stores. California' state federal government previously additionally levied a weight-based tax obligation, yet that tax was rescinded in 2022. Regional federal governments in California can additionally levy an excise tax obligation on marijuana businesses.

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The latter tax obligation can be used on the grower, supplier, and also the merchant, which implies the tax obligation burden on the client is perhaps well over the provided tax rate. Lawful sales began in January 2018.: The state levies both a 15 percent excise tax on cannabis sales (paid by consumers and remitted by merchants) and a weight-based tax (paid and remitted by farmers).

g., edibles) are taxed at 20 percent of market price. City governments can also levy a percentage-of-price excise tax on cannabis. The regional tax obligation rate is capped at 3 percent for towns and 3. 75 percent for regions. However, the region tax obligation is capped at 3 percent when there is also a municipal tax obligation on the acquisition.



Legal sales started in October 2018 however the state did not begin collecting cannabis tax obligation income till November 2020.: Maryland voters approved leisure marijuana in discover here November 2022. The ballot action did not include a marijuana tax obligation, however instead instructed the legislature to develop one. As of April 2023, lawful cannabis sales had not yet begun in Maryland.

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75 percent excise tax on cannabis sales that is paid by consumers and also paid by merchants. Local governments are additionally enabled to levy approximately a 3 percent tax on the market price. Legal sales began in November 2018.: The state levies a 10 percent excise tax obligation on marijuana sales that is paid by customers as well as remitted by stores.


: The state imposes Get the facts a 20 percent excise tax on cannabis sales that is paid by customers as well as paid by merchants. City governments are also enabled to impose up to a 3 percent tax on the list price. Legal sales began in January 2022.: The state levies both a 10 percent excise tax obligation on cannabis sales (paid by consumers and also remitted by stores) as well as a weight-based tax obligation (paid as well as remitted by growers).

Due to the fact that this tax is levied on several organizations in the supply chain (grower, supplier, and seller), the tax worry can "pyramid" to make sure that the actual tax obligation paid by the customer is greater than the listed 2 percent rate. Legal sales began in April 2022.: The state levies a 12 percent excise tax obligation on marijuana sales that is paid by customers and also remitted by stores (dispensary denver).

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Legal sales started in April 2022.: There is both a 13 percent excise tax (9 percent state as well as 4 percent neighborhood) on marijuana sales (paid by consumers as well as remitted by store) and a potency-based tax obligation (remitted by distributors) in New York. The potency-based tax is an each tax obligation: 0.

: The state imposes a 10 percent excise tax obligation on cannabis sales that is paid by consumers as well as paid by sellers. City governments are additionally allowed to levy as much as a 3 percent tax obligation on the retail cost. Legal sales began in November 2022.: The state imposes a 14 percent excise tax obligation on marijuana sales that is paid by consumers and also paid by sellers.

Lawful sales started in October 2022.: The state enacted a 21 percent excise tax on cannabis sales that is paid by customers as well as paid by sellers. City governments will certainly additionally be enabled to impose as much as a 3 percent tax on the retail cost. As of April 2023, legal cannabis sales had actually not yet begun in Virginia.

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Some states that site dedicate cannabis tax obligation revenue to traditional government programs. Arizona spends one-third of its earnings on community colleges, Colorado spends all of its income on public institution building, Michigan utilizes a majority of its profits for K-12 public institutions as well as road repair and also upkeep, and Washington spends fifty percent of its revenue on health care programs.

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