Cannabis tax rates by state: the short answer

Cannabis tax rates range from zero excise tax on medical-only purchases in some states to a combined 37% in Washington, the highest in the country. Most legal states stack a state excise tax on top of the standard sales tax, then allow cities and counties to add local cannabis levies. That means the number on your receipt depends on three things: where you buy, what product you buy, and whether you hold a valid medical card. Rates change often, so treat the figures below as a working guide and confirm the current amount with your state revenue or cannabis agency before you budget a purchase.

Excise tax versus sales tax

Two separate taxes usually show up on one receipt. Sales tax is the general retail tax your state already charges on most goods. Excise tax is a cannabis-specific charge, and states calculate it in one of three ways: a percentage of the retail price, a percentage of the wholesale price, or a fee tied to weight or THC content. Percentage-of-price excise taxes are the easiest to estimate at the counter. Weight and THC taxes are not, because they are baked into the shelf price by the cultivator or processor, and stores rarely break them out at checkout.

Approximate state rates at a glance

  • Washington: 37% state excise, with no additional state sales tax applied to cannabis.
  • Oregon and Montana: 20% state retail tax on recreational products; Montana charges 4% on medical.
  • Arizona: 16% excise on recreational sales, plus the standard state and local sales tax.
  • California and Colorado: about 15% state excise. California adds sales tax and local cannabis business taxes; Colorado adds a special retail marijuana sales tax plus local levies.
  • Vermont and Michigan: 14% and 10% excise, respectively, with the standard sales tax added on top.
  • Massachusetts: 10.75% excise, 6.25% sales tax, and up to 3% local option tax.
  • Nevada: 10% retail excise plus a 15% wholesale excise built into the product price.
  • New York: 13% state excise split between wholesale and retail, plus a 4% local excise and sales tax.
  • Maryland, Illinois, Ohio, Missouri, Maine, Rhode Island: state excise between 6% and 25%, with Illinois varying by THC potency and Ohio applying 10%.
  • Medical-only states: many charge standard sales tax with no cannabis excise, which keeps medical purchases cheaper.

What raises your total above the headline rate

  • Local cannabis taxes, which can add several percentage points in cities that use them to fund programs.
  • Potency or weight fees, such as Connecticut's THC-based tax and New Jersey's cultivation charge.
  • Product type, because Illinois taxes flower, concentrates, and infused edibles at different rates.
  • Card status, since medical patients in several states pay reduced tax or none at all.
  • Delivery fees, which are not tax but often get quoted next to the tax line, so consumers read them as one cost.

How to estimate your out-the-door tax

  1. Look up your state's cannabis excise rate and note whether it applies to retail or wholesale price.
  2. Add the state sales tax rate that applies to your ZIP code.
  3. Add any city or county cannabis tax for the dispensary's jurisdiction.
  4. Check whether the product carries a potency or weight-based fee, and ask the budtender if the shelf price already includes it.
  5. Confirm whether your medical card removes any portion of the tax.
  6. Multiply the shelf subtotal by your combined rate, then add any flat fees to get the estimated total.

Why convenience now matters more than the tax line

Shoppers still notice tax, but they increasingly compare the full checkout cost against effort. A store a few cents cheaper per gram loses to one that offers delivery, online pre-order, or tax-inclusive shelf pricing, because the true price of a purchase includes the trip and the wait. States with high excise rates tend to see more demand for delivery and curbside service, since customers who already pay a premium want the transaction to be fast. When two dispensaries sit in the same tax jurisdiction, the deciding factor is rarely the rate. It is how quickly and easily the product reaches your hand.