State Cannabis Tax Rates Compared
Cannabis taxes stack. A state can charge an excise tax at wholesale, a special sales tax at the register, the ordinary sales tax on top, and a local add-on from the city. The rate in a headline does not match the receipt. The comparison below ranks published state rates by total tax burden on a typical adult-use purchase, then notes where local taxes push the number higher. Rates change with each legislative session, so confirm the current figure with the state revenue department before you travel.
Top pick: Oregon
Oregon charges a single 17 percent state tax on recreational sales and has no general sales tax, so the receipt stays near the shelf price. A limited number of cities add a local tax of up to 3 percent. For a shopper comparing a $50 eighth across state lines, Oregon offers the simplest math and the lowest total in this group. It wins on price, not on selection.
How to compare rates before you buy
- Look up the state cannabis excise tax on the revenue department site.
- Add the state sales tax if cannabis is not exempt from it.
- Check the city or county local option tax for the store address.
- Ask the dispensary whether menu prices already include tax.
- Multiply the shelf price by one plus the combined rate to get the out-the-door cost.
Colorado: 15 percent excise plus 15 percent special sales
Colorado splits the burden between a wholesale excise tax and a special retail sales tax, and many municipalities add their own cannabis levy. Total state burden lands near 30 percent before local taxes, which places it mid-pack.
Michigan: 10 percent excise plus 6 percent sales
Michigan runs one of the lighter combined loads in the country at roughly 16 percent state tax, with no local cannabis add-on in most jurisdictions. The tradeoff is uneven store density outside metro areas.
Nevada: 10 percent retail plus a wholesale excise
Nevada applies a 10 percent retail tax on cannabis and a separate excise on wholesale transfers, plus county sales taxes in some markets. The retail rate looks low until the wholesale layer passes through into the shelf price.
California: 15 percent excise plus sales tax
California adds a 15 percent excise tax to a base sales tax of 7.25 percent plus district taxes, and cities may layer on more. Combined rates in dense metro areas run above 25 percent.
Washington: 37 percent excise
Washington takes 37 percent at the point of sale, with state and local sales tax applied in most jurisdictions. It is the highest single excise rate in the country and the clearest example of a rate that shapes purchase decisions.
Illinois: potency tax up to 25 percent
Illinois taxes cannabis flower at 10 percent, edibles and concentrates at 20 percent, and products above 35 percent THC at 25 percent, then adds 6.25 percent state sales tax and local taxes. High-potency buyers pay the most.
Why convenience moves the ranking
A lower tax rate only helps if a store sits within reach. A shopper who drives 90 minutes to save 12 percent on a $60 order recovers about $7 and spends more than that on fuel. Convenience wins when the tax gap is small or the order is large. Run the math on your actual basket first, then decide whether the cross-border trip pays for itself.
Check these before you pay
- Whether the posted price includes excise and sales tax
- Whether medical patients receive a reduced rate
- Whether the county adds a local cannabis tax
- Whether the receipt shows each tax line separately