This page has not been updated since 8/24/2017. Tax rates may have changed, but the links to state sources may be useful.
The following table makes assumptions in order to make a comparison across states: first, it assumes a uniform retail and wholesale price across the nation; second, it assumes that any taxes that are imposed prior to the retail sale area absorbed by the retailer, for the purpose of a simplified comparison. The prices chosen are not necessarily meant to reflect market prices in any state. For questions, comments or corrections please email andrew.bettinelli@masenate.gov *current as of 8/24/2017
| State | Effective Tax Rate |
| Alaska | 24.7% |
| California | 40.3% |
| Colorado | 33.3% |
| Maine | 10.0% |
| Massachusetts | 20.0% |
| Nevada | 33.2% |
| Oregon | 20.0% |
| Washington | 47.1% |
Alaska:
State Retail Excise: There is no state excise on retail marijuana sales.
State Sales Tax: There is no state sales tax but local communities can impose a local sales tax, which would apply to retail marijuana purchases unless otherwise exempted.
Local Excise: Municipalities can and have imposed an additional local marijuana excise tax. .
Wholesale Tax: The excise tax is $50 an ounce for any part of the bud and flower and $15 an ounce for the remainder of the plant.
Cultivator Tax: Paid on wholesale sales.
Medical Tax: There are no retails sales of medical marijuana.
Sources:
AK Department of Revenue Marijuana Tax FAQ
AK Marijuana FAQ
Hypothetical 1oz purchase: Assuming a retail a retail purchase price of of $300/oz – a retail consumer in Juneau, AK would incur the following taxes: $50/oz in wholesale taxes, built into the retail price; 3% local excise and 5% local sales tax, imposed by the municipality for a total of $24. The total sale price is $324, the total tax paid is $74, and the total tax rate on the transaction is: 24.7%.
California:
State Retail Excise: There is a 15% marijuana excise tax on retail marijuana sales.
Sales Tax: The sales tax is 7.25% and up depending on local options and applies to retail marijuana sales.
Local Excise: Local jurisdictions have the power to assess fees and taxes on marijuana sales.
Wholesale Tax: When growers and processors sell their product to a customer, such as a dispensary, and the customer provides the grower or processor with a valid and timely resale certificate, the sale is not subject to sales tax.
Cultivator Tax: There is a $9.25 per dry-weight ounce tax on marijuana flowers and a $2.75 per dry-weight ounce tax on marijuana leaves and applies to both medical and retail.
Medical Tax: The state’s 15% marijuana excise tax is imposed upon purchasers of all marijuana and marijuana products, including medical marijuana but medical is exempt from state sales tax.
Sources:
California Tax Guide for Cannabis Businesses
Tax Help for the Cannabis Industry
Hypothetical 1oz purchase: Assuming a retail purchase price of of $300/oz – a retail consumer in Long Beach, CA would incur the following taxes: $9.25/oz in cultivator taxes, built into the retail price; 10.25% state and local sales tax for a total of $30.75; 15% state marijuana excise tax for a total of $45.00; and 12% local tax for a total of $36.00. The total sale price is $411.75, the total tax paid is $121.00, and the total tax rate on the transaction is: 40.3%.
Colorado:
State Retail Excise: There is a 15% marijuana excise tax imposed retail sales of marijuana.
Sales Tax: Retail sales are exempt from the state’s 2.9% sales tax but any applicable state administered city or county sales taxes for which an exemption has not been expressly granted by city or county resolution or ordinance applies. Sales of retail marijuana are exempt from some, but not all special district sales taxes. DR 1002 “Colorado Sales/Use Tax Rates” for a complete list of exemptions applicable to each state administered city, county, and special district sales tax.
Local Excise: Local jurisdictions have the power to assess fees and taxes on marijuana sales.
Wholesale Tax: A 15% excise tax is imposed on the first sale or transfer from a retail marijuana cultivation facility to a retail marijuana store, retail marijuana product manufacturing facility or to another retail marijuana cultivation facility.
Cultivator Tax: See wholesale tax.
Medical Tax: Medical marijuana is not subject to the 15% retail marijuana state excise tax. Sales of medical marijuana are subject to sales tax in the same manner as other sales of tangible personal property. Any medical marijuana center selling medical marijuana must collect from the purchaser the regular 2.9% state sales tax, as well as all applicable local and special district sales taxes imposed on sales of tangible personal property.
Sources:
Retail Marijuana Sales Tax Changes Fact Sheet
Excise Tax on Retail Marijuana
Sales Tax on Marijuana
Hypothetical 1oz purchase: Assuming a $200 wholesale value and a retail purchase price of of $300.00/oz – a retail consumer in Denver, CO would incur the following taxes: 15% excise tax on the wholesale transaction, based on the hypothetical wholesale value of $200, for a total of $30.00; a state marijuana excise tax of 15% on the retail sale for a total of $45.00; and a local sales tax rate of 8.25% (which includes a local excise, local sales taxes) for a total of 24.75 the total sales price is $369.75, the total tax paid is $99.75 and the total tax rate is 33.3%.
Maine:
State Retail Excise: There is a 10% marijuana excise tax imposed retail sales of marijuana.
Sales Tax: Does not apply to retail sales.
Local Excise:
Wholesale Tax:
Cultivator Tax:
Medical Tax: Subject to state sales tax of 5.5%. Sales of food prepared by the retailer, including “edible marijuana products” are subject to sales tax at a separate “prepared food rate” (currently 8%).
*The Maine State Legislature is actively considering changes to the law and will likely do so before retail sales begin.
Sources:
Recreational Marijuana in Maine
Medical Marijuana In Maine
Hypothetical 1oz purchase: Assuming a retail value of $300 and a retail purchase price of of $300/oz – a retail consumer in Portland, ME would incur the following tax: 10% state marijuana excise tax for a total of $30.00. The total sale price is $330.00, the total tax paid is $30.00, and the total tax rate on the transaction is: 10.0%. *The Maine State Legislature is actively considering changes to the law and will likely do so before retail sales begin.
Massachusetts:
State Retail Excise: There is a 10.75% marijuana excise tax imposed retail sales of marijuana.
Sales Tax: The state 6.25% sales tax applies to retail purchases of all marijuana and marijuana products.
Local Excise: Optional, up to 3% on retail purchases of all marijuana and marijuana products.
Wholesale Tax: none
Cultivator Tax: none
Medical Tax: : none
Source:
H.3818, An Act to ensure safe access to marijuana
Hypothetical 1oz purchase: Assuming a retail purchase price of of $300/oz – a retail consumer in a MA community that has adopted the maximum local option marijuana excise tax of 3% would incur the following taxes: 6.25% MA sales tax for a total of $18.75; 10.75% MA marijuana excise tax for a total of $32.25; and 3% local option marijuana excise tax for a total of $9.00; the total sale price is $360. The total tax paid is $60.00 and the total tax rate is 20%.
Nevada:
State Retail Excise: 10% excise tax on the retail sale; paid by the retail store.
Sales Tax: Retail sales tax applies to purchases of marijuana at the local rate: 6.850% – 8.10%.
Local Excise:
Wholesale Tax: See below.
Cultivator Tax: 15% excise tax on the wholesale sale; paid by the cultivator.
Medical Tax: 15% excise tax on the wholesale sale, paid by the cultivator, but medical is exempt from the retail excise tax. Regular sales tax at the local rate will be charged to both medical and retail customers.
Sources:
Marijuana in Nevada
FAQs for Marijuana Establishments
Hypothetical 1oz purchase: Assuming a $200 wholesale value and a retail purchase price of of $300.00/oz – a retail consumer in Las Vegas, NV would incur the following taxes: 15% excise tax on the wholesale transaction, based on the hypothetical wholesale value of $200, for a total of $30.00; a state marijuana excise tax of 15% on the retail sale for a total of $45.00; and a local sales tax rate of 8.15% for a total of $24.45 the total sales price is $369.45, the total tax paid is $99.45 and the total tax rate is 33.2%.
Oregon:
State Retail Excise: There is a 17% marijuana excise tax imposed retail sales of marijuana.
Sales Tax: There is no sales tax in Oregon.
Local Excise: Optional, up to 3%.
Wholesale Tax: none.
Cultivator Tax: none.
Medical Tax: No tax on medical purchases of all marijuana.
Sources:
An overview of Oregon’s recreational marijuana taxes
Hypothetical 1oz purchase: Assuming a retail purchase price of of $300/oz – a retail consumer in a OR community that has adopted the maximum local option marijuana excise tax of 3% would incur the following taxes: 17% state marijuana excise tax for a total of $51.00; and 3% local option marijuana excise tax for a total of $9.00; the total sale price is $360. The total tax paid is $60.00 and the total tax rate is 20%.
Washington:
State Retail Excise: There is a 37% marijuana excise tax imposed upon retail purchases of all marijuana and marijuana products.
Sales Tax: 7.0-10.4% (Option to apply existing local sales taxes (0.5-3.1%))
Local Excise:
Wholesale Tax:
Cultivator Tax:
Medical Tax: 6.5% state sales tax. Option to apply existing local sales taxes (0.5-3.1%)
Sources:
Taxes due on marijuana
Business & occupation tax rates
Sales and use tax rates
Hypothetical 1oz purchase: Assuming a retail purchase price of of $300/oz – a retail consumer in a Seattle, WA would incur the following taxes: 37% state marijuana excise tax for a total of $111.00; and state and local sales tax rate of 10.1% for a total of $30.30; the total sale price is $441.30. The total tax paid is $141.30 and the total tax rate is 47.1%.