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Recreational marijuana is now legal in 23 states across the country, allowing roughly half of all Americans to buy their weed from retail stores.
But with legalization comes taxation, meaning residents will be paying more to purchase marijuana through a legal retail store than they would from their neighborhood supplier.
How much more? Well, it depends on where you’re purchasing it.
Each state has established its own tax system for recreational marijuana, with some imposing percentage-of-price excise taxes, while others opt for more complex weight-based or potency-based structures.
>> Here’s how much you’ll pay for legal weed products coming soon to Staten Island >>
In addition to state-level taxes, some places allow local governments to levy their own taxes on recreational marijuana sales.
In New York, recreational marijuana sales are subject to a 13% excise tax, 9% of which goes to the state, while 4% goes to the local government in the place it was sold.
However, these sales are exempt from both state and local general sales taxes, which isn’t the case in many other states.
Here’s a look at the current recreational marijuana tax structures by state.
ALASKA
The state’s weight-based tax is imposed when marijuana is sold from a licensed cultivator to a retail store or product manufacturing facility. The rates vary with the state charging $50 per ounce on mature buds/flower, $25 per ounce on immature or abnormal buds, $15 per ounce on trim and a $1 flat rate per clone.
There are no state excise taxes levied on recreational marijuana sales, though local governments are empowered to establish their own, which may be based on a percentage-of-price or weight, depending on the locality.
Alaska does not levy a state general sales tax, but some of its local governments do.
ARIZONA
The state imposes a 16% excise tax on all retail marijuana sales, in addition to all state and local general sales taxes.
There are no local government excise taxes.
CALIFORNIA
The state imposes a 15% excise tax on all retail marijuana sales. Local governments can levy an additional excise tax and all sales are also subject to state and local general sales taxes.
COLORADO
The state imposes a 15% retail marijuana sales tax on all retail marijuana and marijuana-infused products.
These products are exempt from the state’s 2.9% general sales tax, though local governments may levy their own general sales taxes.
There are no local government excise taxes.
CONNECTICUT
The state imposes a per-unit, potency-based tax that varies based on the product. For cannabis plant material the tax is 0.625 cents per milligram of THC, for edibles the tax is 2.75 cents per milligram of THC and for all other products the tax is 0.9 cents per milligram of THC.
Additionally, the state levies its general 6.35% general sales tax and allows local governments to levy an excise tax, up to 3%, on all sales.
There are no local general sales taxes.
DELAWARE
Recreational marijuana was legalized in Delaware in April 2023, but legal sales have not yet started, as of August. Once they do, the state will impose a 15% excise tax on all sales.
There are no state or local general sales taxes.
ILLINOIS
The state imposes a potency-based tax on retail sales based on the levels of THC within the products. Products with less than 35% THC are taxed 10%, products with more than 35% THC are taxed at 25% and all THC-infused products, like edibles, are taxed at 20%.
Sales are also subject to the state’s 6.25% general sales tax and local government general sales taxes.
Additionally, local governments can impose percentage-of-price excise taxes on recreational marijuana. This tax rate is capped at 3% for municipalities and 3.75% for counties. However, counties can only charge up to 3% if there is also a municipal tax in place.
MAINE
The state imposes a 10% excise tax on all recreational marijuana sales.
Retail marijuana sales are not subject to the state’s general sales tax and local governments do not impose excise or general sales taxes on sales.
MARYLAND
The state imposes a 9% sales and use tax on all recreational marijuana products, the same rate imposed on the sale of alcohol.
MASSACHUSETTS
The state imposes a 10.75% excise tax and 6.25% state general sales tax on all recreational marijuana products.
Additionally, local governments may levy an additional excise tax, up to 3%, on all sales.
Local governments do not levy additional general sales taxes.
MICHIGAN
The state imposes a 10% excise tax and 6% state general sales tax on all recreational marijuana sales.
There are no local excise or general sales taxes.
MINNESOTA
Recreational marijuana was legalized in Minnesota in May 2023, but legal sales have not yet started, as of August. Once they do, the state will impose a 10% excise tax on all recreational marijuana products.
Sales will also be subject to state and local general sales taxes.
Local governments do not levy any additional excise taxes.
MISSOURI
The state imposes a 6% excise tax on all recreational marijuana sales, with localities permitted to charge an additional excise tax of up to 3%.
Sales are also subject to state and local general sales taxes.
MONTANA
The state imposes a 20% excise tax on all recreational marijuana sales, with localities permitted to charge an additional excise tax of up to 3%.
There are no state or local general sales taxes.
NEVADA
The state imposes a 10% excise tax on all recreational marijuana sales, in addition to state and local general sales taxes.
Local governments do not levy additional excise taxes.
NEW JERSEY
The state does not impose an excise tax on recreational marijuana sales, though they are subject to the state’s 6.625% general sales tax.
Cultivators are subject to a weight-based tax based on the average retail price of recreational marijuana in the state.
Additionally, local governments can levy a 2% gross receipts tax on recreational marijuana businesses.
NEW MEXICO
The state currently imposes a 12% excise tax on recreational marijuana sales, though the rate will start increasing by one percentage point each year starting in 2025 until it reaches 18% in 2030.
Sales are also subject to state and local general sales taxes.
There are no local excise taxes in New Mexico.
NEW YORK
The state imposes a 13% excise tax (9% state and 4% local) on recreational marijuana sales. These products are exempt from both state and local general sales taxes.
OREGON
The state imposes a 17% excise tax on recreational marijuana sales, with local governments permitted to levy additional excise taxes of up to 3%.
There are no state or local general sales taxes in the state.
RHODE ISLAND
The state imposes a 10% excise tax on recreational marijuana sales, with local governments permitted to levy additional excise taxes of up to 3%.
Sales are also subject to the state’s 7% general sales tax. Local governments do not levy any additional general sales taxes.
VERMONT
The state imposes a 14% excise tax on recreational marijuana sales. Local governments do not levy any additional excise taxes.
Sales are also subject to state and local general sales taxes.
VIRGINIA
The state imposes a 21% excise tax on recreational marijuana sales, with local governments permitted to levy additional excise taxes of up to 3%.
Sales are also subject to state and local general sales taxes.
WASHINGTON
The state imposes a record-high 37% excise tax on recreational marijuana sales. Local governments do not levy any additional excise taxes.
Sales are also subject to state and local general sales taxes.
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