Maryland’s cannabis tax rate is set to increase under a new budget bill approved by lawmakers and sent to Governor Wes Moore.
(Photo credit: David Paul Morris/Bloomberg).
House Bill 352, passed Monday, raises the tax on adult-use marijuana sales from 9% to 12% starting in fiscal year 2026, an increase of 25%. The new rate will remain in place indefinitely unless lawmakers take further action. Earlier in the session, some legislators pushed for an even higher rate of 15%, but that proposal was ultimately scaled back.
The tax increase comes as Maryland faces a projected $3 billion structural deficit. Supporters argue the move will help address the shortfall without major cuts to services, but marijuana reform advocates, including NORML, strongly opposed the measure. They warned that raising taxes could push more consumers back to the illicit market and financially burden licensed marijuana businesses.
Maryland legalized recreational marijuana through a voter-approved initiative in 2022, with legal sales launching in July 2023. Under current law, adults 21 and older can possess up to 1.5 ounces and grow up to two plants for personal use.
Lawmakers in several other states—including California, Michigan, New Jersey, and Ohio—are also considering or proposing new taxes on legal marijuana. In Ohio, Governor Mike DeWine has urged lawmakers to double the state’s marijuana tax, though the House rejected the idea. The Senate has shown interest in negotiating a compromise.
