Maine’s marijuana sales tax will rise from 10% to 14% starting January 1 as part of the $11.3 billion state budget signed this week by Governor Janet Mills.
The change marks a 40% increase and brings Maine in line with the highest cannabis sales tax rate in New England, matching Vermont and topping Massachusetts’ 10.75%.
The tax hike comes as Maine faces a projected $450 million shortfall over the next two years. In a statement, Governor Mills said the budget reflects “tradeoffs and compromises” in response to ongoing economic uncertainty and a lack of clarity from the federal government.
While consumers will soon pay more at checkout, the new budget also lowers several wholesale and cultivation-related marijuana taxes. The per-pound tax on marijuana flower drops from $335 to $223, and on trim from $94 to $63. The tax on mature plants is cut from $35 to $23, while taxes on clones and seeds fall from $1.50 to $1 and from 30 cents to 20 cents, respectively.
Maine legalized recreational marijuana on November 8, 2016, when voters approved a statewide ballot initiative allowing possession, use, and home cultivation for adults 21 and older. Although legalization took effect in early 2017, the rollout of licensed retail sales was delayed due to legislative and regulatory hurdles. The first adult-use marijuana stores finally opened on October 9, 2020, nearly four years after legalization was approved.
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