Recreational cannabis is now legal in 23 U.S. states, each with its own tax structure and regulations.
Below is a state-by-state overview of current tax rates for both recreational and medical cannabis sales in these 23 states, along with possession limits and the year recreational use was legalized in each. Delaware and Minnesota have set their tax rates but do not yet have operational adult-use markets. Virginia is excluded as it legalized possession but has no retail sales.
Alaska
Tax Rates: A weight-based excise tax applies to recreational cannabis ($50 per ounce of flower). There is no state sales tax in Alaska, but local jurisdictions may impose local sales taxes.
Possession Limits: 1 ounce of dried flower and up to 7 grams of concentrate.
Legalization Year: 2014 (recreational use approved by voters, with sales launching in 2016).
Medical Tax Rates: Medical marijuana (legal since 1998) is tax-free.
Arizona
Tax Rates: A 16% excise tax is applied to recreational cannabis sales. In addition, the regular state sales tax (5.6%) and local sales taxes apply.
Possession Limits: 1 ounce of dried flower and up to 5 grams of concentrate.
Legalization Year: 2020 (approved by ballot initiative, with sales beginning in 2021).
Medical Tax Rates: Medical marijuana (legal since 2010) is taxed at standard sales tax rates but is exempt from the 16% excise tax.
California
Tax Rates: California imposes a 15% excise tax on recreational cannabis. The state sales tax of 7.25% (plus local sales tax) applies.
Possession Limits: 1 ounce of dried flower and up to 8 grams of concentrate.
Legalization Year: 2016 (Proposition 64 approved by voters; retail sales began in 2018).
Medical Tax Rates: Medical marijuana (legal since 1996) is exempt from the state sales tax but not the 15% excise tax.
Colorado
Tax Rates: Recreational cannabis is subject to a 15% state retail cannabis tax and a 15% wholesale excise tax. Regular state sales tax (2.9%) does not apply, but local cannabis taxes may be added.
Possession Limits: 1 ounce of dried flower and up to 8 grams of concentrate.
Legalization Year: 2012 (Amendment 64 approved by voters; retail stores opened in 2014).
Medical Tax Rates: Medical marijuana (legal since 2000) is taxed only at the standard 2.9% sales tax rate, with no 15% excise tax.
Connecticut
Tax Rates: Recreational cannabis is subject to a potency-based excise tax, with rates varying by THC content. A 6.35% state sales tax and an optional 3% municipal tax also apply.
Possession Limits: 1.5 ounces of dried flower (5 ounces allowed at home or in a vehicle).
Legalization Year: 2021 (legalized by state legislature; retail sales began in 2023).
Medical Tax Rates: Medical marijuana (legal since 2012) is tax-exempt.
Delaware
Tax Rates: Recreational cannabis is subject to a 15% excise tax. Delaware has no general sales tax. Local jurisdictions cannot add additional cannabis taxes.
Possession Limits: 1 ounce of dried flower and up to 5 grams of concentrate.
Legalization Year: 2023 (legalized by state legislature; retail sales forthcoming).
Medical Tax Rates: Medical marijuana (legal since 2011) is tax-free.
Illinois
Tax Rates: A tiered excise tax applies: 10% for cannabis up to 35% THC, 20% for edibles, and 25% for concentrates. The state sales tax (6.25%) and local taxes (up to 3%) also apply.
Possession Limits: 30 grams of dried flower, 5 grams of concentrate, or 500 mg of THC in edibles (non-residents may possess half these amounts).
Legalization Year: 2019 (legalized by legislation, effective 2020).
Medical Tax Rates: Medical marijuana (legal since 2013) is taxed at 1% and exempt from the excise tax.
Maine
Tax Rates: Recreational cannabis is subject to a 10% state sales tax, in addition to cultivation excise taxes. Local cannabis taxes are not allowed.
Possession Limits: 2.5 ounces of dried flower and up to 5 grams of concentrate.
Legalization Year: 2016 (approved by voters; retail stores opened in 2020).
Medical Tax Rates: Medical marijuana (legal since 1999) is taxed at 5.5%, with no excise tax.
Maryland
Tax Rates: Recreational cannabis is subject to a 9% excise tax. No additional local taxes are allowed.
Possession Limits: 1.5 ounces of dried flower and up to 12 grams of concentrate.
Legalization Year: 2022 (approved by voters, implemented July 2023).
Medical Tax Rates: Medical marijuana (legal since 2014) is tax-free.
Massachusetts
Tax Rates: Recreational cannabis is subject to a 10.75% excise tax, a 6.25% state sales tax, and an optional 3% local tax.
Possession Limits: 1 ounce of dried flower and up to 5 grams of concentrate. Up to 10 ounces allowed at home.
Legalization Year: 2016 (approved by voters; first retail shops opened in 2018).
Medical Tax Rates: Medical marijuana (legal since 2012) is tax-free.
Michigan
Tax Rates: Recreational cannabis is subject to a 10% excise tax and a 6% state sales tax. No additional local cannabis taxes are allowed.
Possession Limits: 2.5 ounces of dried flower (10 ounces allowed at home), and up to 15 grams of concentrate.
Legalization Year: 2018 (approved by voters; retail sales began in 2019).
Medical Tax Rates: Medical marijuana (legal since 2008) is taxed at 6% with no excise tax.
Minnesota
Tax Rates: Recreational cannabis is subject to a 10% excise tax, plus the state sales tax (6.875%). Local cannabis-specific taxes are not allowed.
Possession Limits: 2 ounces of dried flower in public, 2 pounds at home, up to 8 grams of concentrate, and 800 mg of edibles.
Legalization Year: 2023 (legalized by state legislature; retail market expected in 2025).
Medical Tax Rates: Medical marijuana (legal since 2014) is tax-free.
Missouri
Tax Rates: Recreational cannabis is subject to a 6% state tax, with local governments able to add up to 3% each (max 12% total).
Possession Limits: 3 ounces of dried flower and up to 8 grams of concentrate.
Legalization Year: 2022 (approved by voters; sales began in 2023).
Medical Tax Rates: Medical marijuana (legal since 2018) is taxed at 4%.
Montana
Tax Rates: Recreational cannabis is subject to a 20% excise tax. Local governments can add up to 3%.
Possession Limits: 1 ounce of dried flower and up to 8 grams of concentrate.
Legalization Year: 2020 (approved by voters; sales began in 2022).
Medical Tax Rates: Medical marijuana (legal since 2004) is taxed at 4%.
Nevada
Tax Rates: Recreational cannabis is subject to a 10% excise tax, plus the state sales tax (~6.85%, varying locally). A 15% wholesale excise tax also applies but is included in retail pricing.
Possession Limits: 1 ounce of dried flower and up to 3.5 grams of concentrate.
Legalization Year: 2016 (approved by voters; sales began in 2017).
Medical Tax Rates: Medical marijuana (legal since 2000) is exempt from the 10% excise tax but subject to standard sales tax.
New Jersey
Tax Rates: Recreational cannabis is subject to a 6.625% state sales tax, plus up to 2% local tax. A small social equity excise fee is imposed on cultivators.
Possession Limits: 6 ounces of dried flower.
Legalization Year: 2020 (approved by voters; sales began in 2022).
Medical Tax Rates: Medical marijuana (legal since 2010) is tax-free.
New Mexico
Tax Rates: Recreational cannabis is subject to a 12% excise tax, increasing 1% annually until reaching 18% in 2030. The state’s gross receipts tax (~7–9%) also applies.
Possession Limits: 2 ounces of dried flower, 16 grams of concentrate, or 800 mg of edibles.
Legalization Year: 2021 (legalized by state legislature; sales began in 2022).
Medical Tax Rates: Medical marijuana (legal since 2007) is tax-free.
New York
Tax Rates: Recreational cannabis is subject to a 13% excise tax (9% state and 4% local). The previously used THC-based tax has been eliminated. Standard state sales tax does not apply, and localities cannot impose additional cannabis-specific taxes.
Possession Limits: 3 ounces of dried flower and up to 24 grams of concentrate.
Legalization Year: 2021 (legalized by legislation; sales began in 2022).
Medical Tax Rates: Medical marijuana (legal since 2014) is taxed at 3.15% and exempt from the 13% excise tax.
Oregon
Tax Rates: Recreational cannabis is subject to a 17% state sales tax, with local governments allowed to add up to 3%.
Possession Limits: 1 ounce of dried flower and up to 5 grams of concentrate in public (8 ounces allowed at home).
Legalization Year: 2014 (approved by voters; sales began in 2015).
Medical Tax Rates: Medical marijuana (legal since 1998) is tax-free.
Rhode Island
Tax Rates: Recreational cannabis is subject to a 10% excise tax, a 7% state sales tax, and a 3% local tax (20% total).
Possession Limits: 1 ounce of dried flower and up to 5 grams of concentrate.
Legalization Year: 2022 (legalized by state legislature; sales began in 2022).
Medical Tax Rates: Medical marijuana (legal since 2006) is subject to the 7% sales tax but exempt from other cannabis taxes.
Vermont
Tax Rates: Recreational cannabis is subject to a 14% excise tax plus a 6% state sales tax (20% total). Local cannabis taxes are not allowed.
Possession Limits: 1 ounce of dried flower and up to 5 grams of concentrate.
Legalization Year: 2018 (legalized by state legislature; sales began in 2022).
Medical Tax Rates: Medical marijuana (legal since 2004) is tax-free.
Washington
Tax Rates: Recreational cannabis is subject to a 37% excise tax, plus the state sales tax (~6.5%) and local sales taxes (~9–10% total). Local governments cannot add additional cannabis-specific taxes.
Possession Limits: 1 ounce of dried flower and up to 7 grams of concentrate.
Legalization Year: 2012 (approved by voters; sales began in 2014).
Medical Tax Rates: Medical marijuana (legal since 1998) is exempt from the 37% excise tax but subject to standard sales tax.
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