23 states have legalized the licensed distribution of cannabis, but how they approach taxes and regulations varies substantially.
Of these 23 states —21 of which have a currently operating adult-use market, with Delaware’s and Minnesota’s launching later this year— marijuana taxes range from just 6%, all the way to 37%. Below is a list of all 23 states that have legalized marijuana sales, from lowest to highest.
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Missouri – 6% state excise tax on adult-use cannabis.
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New Jersey – 6.625% state sales tax
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Maryland – 9% state cannabis sales and use tax.
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New York – 13% total excise tax (9% state portion + 4% state-mandated local portion).
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Delaware – 15% state excise tax (no sales tax).
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Michigan – 10% state excise tax + 6% state sales tax = 16%.
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Illinois – Tiered excise tax based on product:
• 10% (≤35% THC) + 6.25% sales tax = 16.25%
• 20% (infused products) + 6.25% = 26.25%
• 25% (>35% THC) + 6.25% = 31.25% -
Nevada – 10% excise tax + 6.85% state sales tax = 16.85%.
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New Mexico – 12% excise tax + 4.875% gross receipts tax = 16.875%.
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Minnesota – 10% excise tax + 6.875% state sales tax = 16.875%.
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Massachusetts – 10.75% cannabis excise tax + 6.25% sales tax = 17%.
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Oregon – 17% cannabis retail tax (no state sales tax).
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Rhode Island – 10% cannabis excise tax + 7% state sales tax = 17%.
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Connecticut – THC-based excise tax: $0.00625/mg (flower), $0.0275/mg (edibles), $0.009/mg (concentrates) + 6.35% sales tax. Average total tax varies by product, typically 17–20%.
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Montana – 20% state excise tax (no state sales tax).
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Maine – Weight-based excise tax (averages ~10%) + 10% sales tax = ~20%.
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Alaska – Weight-based excise tax imposed on cultivators; effective tax at retail averages ~20%. No state sales tax.
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Arizona – 16% excise tax + 5.6% state transaction privilege tax = 21.6%.
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Vermont – 14% excise tax + 6% state sales tax = 20%.
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California – 15% cannabis excise tax + 7.25% state sales tax = 22.25%.
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Virginia – 21% cannabis excise tax + 6% sales tax = 27% (retail sales not yet operational).
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Colorado – 15% excise tax (on wholesale) + 15% retail marijuana sales tax = ~30% total effective tax.
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Washington – 37% cannabis excise tax + 6.5% state sales tax = 43.5%.
