While 24 states have legalized recreational cannabis as of October 2025, with 23 allowing licensed sales, the way each approaches taxation differs widely.
Some states levy a flat excise tax, others apply sales taxes on top, and several use weight- or potency-based systems. With that in mind, below is a breakdown of the current tax structures in every state that has legalized recreational cannabis, organized alphabetically.
Alaska – Cannabis is taxed through weight-based excise taxes imposed on cultivators, such as $50 per ounce of flower and $15 per ounce of trim. No state sales tax applies, though some local governments add their own. The effective retail tax burden averages around 20%.
Arizona – Recreational cannabis faces a 16% excise tax at retail, on top of Arizona’s 5.6% transaction privilege (sales) tax . Cities and counties can also add local sales taxes. Combined state-level rates are about 21.6%, with actual totals slightly higher in localities that levy their own taxes.
California – On July 1, 2025, the state raised its cannabis excise tax from 15% to 19%. However, this went back down to 15% on October 1 (at least until 2028) following legislation signed recently by Governor Newsom. The excise tax is in addition tot the state’s 7.25% sales tax and potential local taxes.
Colorado – Marijuana is taxed with a 15% wholesale excise on transfers from cultivators, plus a 15% retail excise tax. Effective rates are around 30% once both levels are factored in.
Connecticut – A potency-based excise system charges $0.00625 per milligram of THC for flower, $0.0275 per milligram for edibles, and $0.009 per milligram for concentrates. On top of this, cannabis is subject to the 6.35% state sales tax and up to 3% local taxes. Effective rates vary, generally falling between 17% and 20% depending on the product.
Delaware – Recreational sales are scheduled to begin soon. The state has set a 15% excise tax, with no additional sales tax.
Illinois – Excise taxes depend on product type and THC level. Flower with 35% THC or less is taxed at 10%, infused products at 20%, and flower above 35% THC at 25%. These rates are combined with the state’s 6.25% sales tax, producing effective totals of roughly 16.25% to 31.25%.
Maine – Adult-use cannabis in Maine is subject to a 10% state cannabis tax at retail (imposed on the consumer purchase). No general sales tax applies to cannabis sales beyond this 10%. Additionally, Maine imposes weight-based excise taxes on cultivators (e.g., $335 per pound of flower, $94/lb for trim, etc.) which are built into the cost. Altogether, consumers effectively bear roughly a 20% tax burden in the retail price on average.
Maryland – Recreational cannabis is taxed at 9% on retail sales. Cannabis is exempt from the state’s general sales tax.
Massachusetts – Recreational marijuana carries a 10.75% excise tax, combined with the 6.25% state sales tax. Municipalities may also impose an additional tax of up to 3%. Effective rates typically come in around 17% or slightly higher.
Michigan – Recreational sales are taxed with a 10% excise tax on top of the 6% state sales tax, making for an effective rate of 16%.
Minnesota – The cannabis excise tax increased from 10% to 15% on July 1, 2025. Combined with the 6.875% state sales tax, the effective rate is about 21.875%, with local taxes possible on top.
Missouri – Recreational cannabis is taxed at 6% excise. Local governments may add an additional tax of up to 3%, though the state Supreme Court has ruled that cities and counties cannot stack both on the same sale in incorporated areas.
Montana – The state imposes a 20% excise tax on recreational cannabis, with local governments allowed to add up to 3%. Combined rates typically range from 20% to 23%.
Nevada – Marijuana is taxed with a 15% wholesale excise on cultivator transfers and a 10% retail excise. Added to the state’s 6.85% sales tax, effective rates average about 16.85% before local add-ons.
New Jersey – Recreational cannabis is subject to the 6.625% state sales tax, along with an excise fee structure applied at the wholesale level. Combined effective rates vary depending on product pricing and fees.
New Mexico – Recreational cannabis is taxed at 12% excise, with the state’s 4.875% gross receipts tax added on top. That makes the effective rate about 16.875%.
New York – Cannabis is taxed at 9% excise at the retail level, plus a 4% state-mandated local excise tax, for a combined 13%. An additional 9% distributor-level tax also applies, making the overall tax burden one of the more complex in the nation.
Oregon – Recreational cannabis carries a flat 17% excise tax, with local governments allowed to add up to 3%.
Rhode Island – Recreational marijuana is subject to a 10% excise tax, 7% state sales tax, and an optional 3% local excise tax. Effective rates usually total around 17% or slightly higher.
Vermont – Recreational sales carry a 14% excise tax plus the state’s 6% sales tax, for a combined total of 20%. Municipalities may also add additional local excises.
Virginia – Although marijuana possession is legal, recreational sales have not yet begun. A proposal to legalize licensed sales and set an 11.625% combined tax rate was recently vetoed by the governor.
Washington – Recreational cannabis is taxed at 37% excise at the retail level, plus the 6.5% state sales tax. This creates the highest effective state-level tax rate in the country, at 43.5%.
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