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State marijuana tax obligation rates vary from 6 percent in Missouri to 37 percent in Washington. Regional marijuana taxes are usually capped by the state and also collection between 2 percent as well as 5 percent. The percentage-of-price tax obligation is the most preferred tax on cannabis. 10 states entirely utilize this type of tax obligation and also five states use it along with another tax obligation.

Alaska, Colorado, Maine, Nevada, and also New Jersey utilize a weight-based marijuana tax. Tax estimations differ across these states, but in every state the farmer (i. e., marijuana grower) is accountable for paying the tax to the federal government, and in every state but New Jacket various components of the plant are taxed at various rates (e.

Potency-based. dispensary denver. A potency-based tax is determined based upon the marijuana product's level of tetrahydrocannabinol (THC), the primary psychedelic compound in cannabis. This type of tax obligation about mirrors state alcohol tax obligations where greater tax obligation rates are put on products consisting of a higher focus of alcohol (i. e., a state's per gallon alcohol tax rate is higher on liquor than white wine and also higher on white wine than beer).


City governments can likewise levy an excise tax obligation on cannabissome levy a percentage-of-price tax obligation as well as others levy a weight-based tax obligation. Lawful sales began in October 2016.: The state imposes a 16 percent excise tax on marijuana sales that is paid by customers and paid by merchants. There are no local marijuana taxes in Arizona.


: The state levies a 15 percent excise tax on marijuana sales that is paid by consumers and also remitted by retailers. The golden state' state government previously additionally levied a weight-based tax obligation, but that tax obligation was reversed in 2022. City governments in California can also levy an excise tax on marijuana services.

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The last tax obligation can be used on the farmer, distributor, as well as the seller, which means the tax worry on the consumer is perhaps well over the noted tax rate. Legal sales began in January 2018.: The state levies both a 15 percent excise tax on cannabis sales (paid by customers and remitted by sellers) as well as a weight-based tax obligation (paid as well as remitted by cultivators).

Local federal governments can also levy click for source a percentage-of-price excise tax on cannabis. The county tax obligation is covered at 3 percent when there is likewise a metropolitan tax obligation on the purchase.



Lawful sales started in October 2018 but the state did not start accumulating marijuana tax obligation earnings till November 2020.: Maryland voters approved leisure cannabis in November 2022. The tally measure did not contain a cannabis tax obligation, however instead instructed the legislature to create one. As of April 2023, legal cannabis sales had actually not yet started in Maryland.

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75 percent excise tax obligation on marijuana sales that is paid by consumers and remitted by stores. Neighborhood governments are also permitted to levy approximately a 3 percent tax on the market price. Legal sales started in November 2018.: The state imposes a 10 percent excise tax on marijuana sales that is paid by customers and paid by stores.


: The state imposes a 20 percent excise tax obligation on cannabis sales that is paid by consumers and also remitted by sellers. City governments are additionally allowed to levy as much as a 3 percent tax obligation on the retail price. Legal sales started in January 2022.: The state levies both a 10 percent excise tax on cannabis sales (paid by customers and also remitted by sellers) as well as a weight-based tax obligation (paid and remitted by cultivators).

Since this tax obligation is imposed on multiple services in the supply chain (farmer, distributor, and merchant), the tax obligation burden can "pyramid" to ensure that the actual tax obligation paid by the customer is more than the detailed 2 percent rate. Legal sales started in April 2022.: The state imposes a 12 percent excise tax obligation on marijuana sales that is paid by customers and remitted by retailers (dispensary denver).

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Lawful sales began in check over here April 2022.: There is both a 13 percent excise tax obligation (9 percent state as well as 4 percent regional) on marijuana sales (paid by customers and paid by seller) as well as a potency-based tax obligation (remitted by representatives) in New york city. The potency-based tax is a per system tax: 0.

: The state imposes a 10 percent excise tax obligation on marijuana sales that is paid by consumers and paid by stores. City governments are also permitted to impose as much as a 3 percent tax on the market price. Lawful sales began in November 2022.: The state imposes a 14 percent excise tax on cannabis sales that is paid by customers as well as paid by merchants.

Legal sales started in October 2022.: The state passed a 21 percent excise tax on cannabis sales that is paid by consumers as well as remitted by sellers. City governments will additionally be permitted to levy as much as a visit here 3 percent tax on the market price. As of April 2023, lawful cannabis sales had actually not yet begun in Virginia.

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Some states devote marijuana tax earnings to conventional federal government programs. For example, Arizona spends one-third of its profits on community colleges, Colorado invests every one of its profits on public school building, Michigan makes use of a majority of its income for K-12 public institutions and also road repair work and also maintenance, as well as Washington invests fifty percent of its earnings on healthcare programs.

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