State marijuana law is changing almost daily, so it's understandable that there’s some confusion about what is legal, how much it costs, and how each state is regulating it. Even if you are clear on which states have legalized weed, it can be hard to keep details straight, especially when things can be so drastically different across each state border. This state-by-state marijuana tax guide provides the most up to date information about how each state in the United States imposes taxes on both recreational and medical marijuana.
Table of Contents
Alabama
Marijuana is illegal for both recreational and medical uses in Alabama, but they still have a tax on illegal drugs. For marijuana, the tax rate is $3.50 per gram if the owner possesses 42.5 grams or more.
Alaska
According to the Alaska Department of Revenue, taxes on cannabis are imposed during the exchange between a marijuana cultivation facility and a retail marijuana store or product manufacturing location. The tax is $50 per ounce.
Arizona
![image of gloved hands holding a marijuana plant]()
Only medical marijuana is legal in Arizona, and the state is seeking to make a big profit on the industry. There is a 6.6 percent tax for the state and a tax between two percent and three percent for cities.
Arkansas
Arkansas is in the process of legalizing medical weed, but the state plans for a tax of four percent plus the regular 6.5 percent sales tax.
California
California has new taxes as of the start of 2018. There is a 15 percent tax on purchasers. For cultivators, there are taxes of $9.25 and $2.75 for each ounce of dried flower and leaves, respectively.
Colorado
Medical marijuana is taxed 2.9 percent, while recreational marijuana is taxed at 15 percent. Colorado is a state to watch, as its rates and initial revenue in the industry have been deciding factors for many other states on the fence about legalizing.
Connecticut
Weed is illegal in Connecticut, but the tax stamp rate is $3.50 per gram if the owner possesses 42.5 grams or more.
D.C.
While marijuana is legal to possess in D.C., it is still not legal to sell. Therefore, the state has not enacted regulations that would allow tax revenue to be collected.
Delaware
No taxes are in place in Delaware.
Florida
Medical marijuana is legal in Florida and there is no tax on medical marijuana. If the state decides to legalize recreational use, they will likely impose a tax on it.
Georgia
Both recreational and medical are illegal, but the tax stamp rate is $3.50 per gram.
Hawaii ![image of the hands of a person in a lab coat writing on papers that are sitting next to an open bottle of medical marijuana]()
Taxes on medical marijuana vary per island in Hawaii, ranging currently from four percent to 4.5 percent.
Idaho
Weed is illegal in Idaho, but the tax stamp rate is $3.50 per gram or $775 per plant.
Illinois
The state of Illinois operates with a one percent sales tax under the state's pharmaceutical rate and a seven percent privilege tax paid by sellers and growers.
Indiana
Indiana's marijuana tax stamp rate is $3.50 per gram, similar to many other states.
Iowa ![image of hand holding marijuana leaf up to the sky]()
Similar to other non-legalized states, Iowa has a tax stamp rate of $3.50 per gram if the owner possesses 42.5 grams or more, or a rate of $750 per plant.
Kansas
Cannabis is illegal in Kansas, but here's how the tax stamp breaks down: $3.50 per gram if the owner possesses 28 grams or more, $.40 per gram of wet plant, or $.90 per gram of dry plant.
Kentucky
In Kentucky, marijuana is taxed $3.50 per gram if the owner possesses 42.5 grams or more or $1000 per plant if the owner possesses five plants or more.
Louisiana
Like its southern friend Alabama, the tax stamp rate in Louisiana is $3.50 per gram if the owner possesses 42.5 grams or more.
Maine
Maine has a 5.5 percent medical tax rate. Recreational marijuana taxes are potentially changing, hovering between 10 percent and 20 percent.
Maryland
There are currently no marijuana taxes imposed in Maryland.
Massachusetts
Massachusetts does not tax medical marijuana currently, but there is a 20 percent tax on recreational marijuana in the state.
Michigan
The medical industry is just beginning to grow, and the state expects a six percent tax to be enacted.
Minnesota
Marijuana is not legal here, but the tax stamp rate is $3.50 per gram.
Mississippi
All weed is illegal in Mississippi and no tax rates are available.
Missouri
Same as above, no data is available.
Montana
The Montana Department of Revenue enforces a four percent tax on medical weed.
Nebraska
Marijuana is illegal; the tax stamp rate is $100 per ounce if owner possesses six ounces or more.
Nevada
Medically, Nevada has a "15 percent excise tax on the wholesale sale, paid by the cultivator." For recreational sale, there's a "15 percent excise tax on the wholesale sale; paid by the cultivator [and a] 10 percent excise tax on the retail sale; paid by the retail store."
New Hampshire
New Hampshire is in the process of trying to legalize, so no taxes are yet in place.
New Jersey
New Jersey has a seven percent generic tax on marijuana.
New Mexico
New Mexico does not currently tax medical marijuana, and recreational weed is still illegal.
New York
Weed is still illegal, but there is a seven percent medical excise tax in New York.
North Carolina
Although marijuana is illegal, the tax stamp rates are $3.50 per gram if the owner possesses 42.5 grams or more, or $.40 per gram of stems.
North Dakota
While North Dakota may legalize in the near future, no plans for tax rates are yet available.
Ohio
![image of green cross with a green marijuana leaf on top of it]()
Ohio is currently, as of fall 2018, rolling out a medical program in the state, so tax rates are not clearly available.
Oklahoma
The tax rate for Oklahoma's new medical marijuana program is seven percent.
Oregon
Recreational marijuana requires a tax of 17 percent in Oregon, but there is no tax on medical marijuana.
Pennsylvania
Pennsylvania operates with a five percent tax rate.
Rhode Island
Rhode Island has a four percent medical charge paid by the seller, as well as a tax stamp of $3.50 per gram if the owner possesses 42.5 grams or more.
South Carolina
Marijuana is illegal in South Carolina, and the stamp rate is the same as Rhode Island above.
South Dakota
Because weed is not yet legal, there are no tax rates available for South Dakota.
Tennessee
Yet again, marijuana is illegal here. Tax stamp rates are $3.50 per gram if the owner possesses 42.5 grams or more or $.40 per gram of stems.
Texas
No tax rates are established in Texas, as weed remains illegal.
Utah
While some believe legalization is possible soon in Utah, no progress has yet occurred, and tax rates have not been established.
Vermont
Vermont is in the midst of newly-legalized recreational marijuana, so the state is still creating tax structure to regulate the industry.
Virginia
Cannabis remains illegal; no tax data is available.
Washington
Washington has a 37 percent medical tax, plus an extra eight percent for retail marijuana.
West Virginia
West Virginia operates with a ten percent tax.
Wisconsin
Marijuana is illegal for the time being, and there is no data on taxes.
Wyoming
All weed is illegal in Wyoming, so there is no tax structure in place.
To stay up to date with more information about marijuana taxation, keep an eye on Leafbuyer and on the news, especially as new states continue to legalize medical and/or recreational programs.
