STATEN ISLAND, N.Y. – There are 21 states across the nation where recreational adult-use weed is legal and each one of those states taxes the sale of weed differently.
New York legalized adult-use weed in March 2021 when former Gov. Andrew Cuomo signed the Marijuana Regulation and Taxation Act, but the first dispensary didn’t open up until December 2022 under Gov. Kathy Hochul.
Cuomo initially proposed a 20% tax on weed in New York, however, the retail tax is currently 13%.
Of the 13% tax on retail weed sales, 9% goes to the state and 4% goes to the local government where a dispensary is located and the sale is taking place.
New York is one of three states that imposes an additional tax based on the potency of the weed’s THC content; Connecticut and Illinois also add an additional tax based on THC content.
In addition to different methods of sales tax and potency tax, some states also add additional taxes, such as excise tax and/or a locality tax as well as sales tax.
Here’s how each of the 21 states where recreational adult-use marijuana is legal taxes consumers:
ALASKA
Mature flower – $50 per ounce
Immature flower – $25 per ounce
Trim – $15 per ounce, $1 per clone
ARIZONA
16% excise tax on retail price
CALIFORNIA
15% excise tax
Flower – $9.65 per ounce and $2.87 per ounce leaves cultivation tax
Fresh cannabis plant – $1.35 per ounce
COLORADO
15% excise tax on retail price
3% tax on retail price
CONNECTICUT
There are three different retail taxes on cannabis in Connecticut:
6.35% sales tax
3% local sales tax
Tax based on THC content:
$0.00625 per milligram of THC in plant material
$0.0275 per milligram of THC in edibles
$0.09 per milligram of THC in non-edible products
Cutting to the chase, it’s 20% in the end.
ILLINOIS
Flower or products with less than 35% THC – 10% tax
Flower or products with more than 35% THC – 25% tax
Edibles and cannabis infused products – 20% tax
MAINE
Flower – $335 per pound
Trim – $94 per pound
Immature plant or seedling – $1.5 each
Seed – $0.3 each
10% sales tax retail price
MASSACHUSETTS
10.75% excise tax
6.25% state sales tax
Up to 3% local option for cities and towns
MICHIGAN
10% excise tax retail price
6% sales tax
MONTANA
20% excise tax retail price
NEVADA
10% excise tax retail price
15% excise tax on fair market value at wholesale
Sales tax based on locality
NEW JERSEY
$10 per ounce, if retail per ounce is $350 or more
$30 per ounce, if retail per ounce is between $250 and $350
$40 per ounce, if retail per ounce is between $200 and $250
$60 per ounce, if retail per ounce is less than $200
All transactions are subject to sales tax of 6.625% plus a social equity excise fee of 1/3 of 1%.
NEW MEXICO
$12 excise tax retail price
5.13% sales tax
OREGON
17% excise tax retail price
3% sales tax per locality
RHODE ISLAND
10% state excise tax retail price
3% local excise tax retail price
VERMONT
14% excise tax retail price
6% sales tax
Local option tax based on locality
WASHINGTON
37% excise tax retail price
H/T: www.silive.com
