A State-by-State Guide to Marijuana Taxes in the U.S

map of unites states with the flag image on top of the stages in all green. where the stars would normally be the flag there are marijuana leaves

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. 

image of a gavel next to some weed nugs

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

image of jars of marijuana on display at a dispensaryMedical 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

nugs of marijuana on a scale 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

image of marijuana nugs on a bag that reads "Rx"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. 


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Marisa Petersen
Marisa is a media and English student based in Colorado and Upstate New York. She loves writing and journalism; her favorite articles to write are theatre, music, and film reviews. Some of her other passions include traveling, cooking, and reading.