U.S. Cannabis Excise Tax Rates: State-by-State Tax Schedules for Recreational Marijuana
Reference for U.S. state cannabis excise tax rates across the 24 states that have legalized recreational marijuana. Tax structures vary widely, including percentage-based, weight-based, and potency-based systems.
This is a regulated fee — required or governed by law in the jurisdictions below.
Overview
Twenty-four U.S. states have legalized recreational cannabis, with 23 permitting licensed retail sales. Each state sets its own excise tax structure, and rates vary dramatically. Some states impose a flat percentage at retail (e.g., Arizona at 16%), others use a wholesale-plus-retail dual excise (e.g., Colorado at 15% + 15%), and a few tax based on THC potency per milligram (e.g., Connecticut). Most states layer cannabis excise taxes on top of standard state and local sales taxes, creating effective tax burdens that can exceed 30-40%. Online cannabis retailers and delivery services must charge the correct excise rate based on the customer's delivery jurisdiction.
Fee schedule by jurisdiction
12 jurisdictions with active fee requirements.
| Jurisdiction | Fee |
|---|---|
| Alaska | $50/oz flower, $25/oz immature buds, $15/oz trim (weight-based) |
| Arizona | 16% excise tax at retail |
| California | 15% excise tax at retail |
| Colorado | 15% wholesale excise + 15% retail excise |
| Connecticut | $0.00625–$0.0275 per mg THC (potency-based) |
| Illinois | 10–25% excise (THC-tiered) + 6.25% sales tax |
| Maryland | 9% excise tax at retail |
| Massachusetts | 10.75% excise + 6.25% sales tax |
| Michigan | 10% excise + 6% sales tax |
| Minnesota | 10% excise + 6.875% sales tax |
| New York | 9% state THC excise + 4% state sales tax |
| Oregon | 17% retail excise tax |
Alaska
$50/oz flower, $25/oz immature buds, $15/oz trim (weight-based)
Cultivator-to-retailer transfers
No additional state sales tax on retail cannabis sales
Arizona
16% excise tax at retail
Recreational cannabis retail sales
Plus standard 5.6% state sales tax and local taxes
California
15% excise tax at retail
Recreational cannabis retail sales
Reduced from 19% effective October 1, 2025. Plus state and local sales tax.
Effective Oct 1, 2025
Colorado
15% wholesale excise + 15% retail excise
Recreational cannabis sales
Dual excise system. Plus 2.9% state sales tax and local taxes. Effective total can exceed 30%.
Connecticut
$0.00625–$0.0275 per mg THC (potency-based)
Recreational cannabis retail sales
Plus 6.35% state sales tax and up to 3% local tax. Rate depends on product type and THC concentration.
Illinois
10–25% excise (THC-tiered) + 6.25% sales tax
Recreational cannabis retail sales
10% on products with ≤35% THC, 20% on infused products, 25% on products with >35% THC. Local taxes up to 3.75% additional.
Maryland
9% excise tax at retail
Recreational cannabis retail sales
Effective Jul 1, 2023
Massachusetts
10.75% excise + 6.25% sales tax
Recreational cannabis retail sales
Local option tax up to 3% additional
Michigan
10% excise + 6% sales tax
Recreational cannabis retail sales
Minnesota
10% excise + 6.875% sales tax
Recreational cannabis retail sales
Excise rate increased from 10% effective July 1, 2025
New York
9% state THC excise + 4% state sales tax
Recreational cannabis retail sales
THC tax is per-mg based. Local taxes additional.
Oregon
17% retail excise tax
Recreational cannabis retail sales
No state sales tax in Oregon. Local option tax up to 3% additional.
Enforcement
Cannabis retailers operating without proper licensing or failing to collect and remit excise taxes face severe penalties including fines, license revocation, and criminal prosecution. Federal tax code Section 280E still applies, preventing cannabis businesses from deducting most business expenses.
Official sources
Related guides
Step-by-step guides for charging u.s. state cannabis excise taxes on Shopify.
Shopify compliance
This is a mandatory fee — merchants selling in covered jurisdictions are legally required to collect it. Shopify requires that mandatory fees be clearly disclosed to customers before checkout. Use a Shopify app like Magical Fees to automate collection and ensure compliance.
This information is maintained by the Magical Apps team and reviewed semi-annually. Always consult official government sources for the most current requirements.
Quick facts
- Regulation
- State Cannabis Excise Tax Laws
- Country
- United States
- Jurisdictions
- 12
- Category
- Excise Taxes
Explore U.S. State Cannabis Excise Taxes in practice
See how to automate this fee on Shopify and browse other regulations in this category.
Related use cases
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More excise taxes
Other regulations in this category.
Canadian Cannabis Excise Duty
Reference for Canadian federal cannabis excise duty and provincial/territorial markups. Licensed cannabis producers and sellers must charge the applicable duty; the federal component is $1 per gram or 10% of dutiable amount, whichever is higher, plus provincial markups.
View fee schedule →United KingdomUK Soft Drinks Industry Levy (SDIL)
Reference for the UK Soft Drinks Industry Levy (SDIL), a levy on producers and importers of sugar-sweetened soft drinks. Two tiers apply based on sugar content; the cost is typically passed through to retail prices.
View fee schedule →United StatesU.S. Federal Alcohol Excise Taxes
Reference for U.S. federal excise tax rates on alcoholic beverages, including beer, wine, and distilled spirits, as administered by the Alcohol and Tobacco Tax and Trade Bureau (TTB).
View fee schedule →United StatesU.S. Sweetened Beverage Taxes (Soda Taxes)
Reference for U.S. city-level sweetened beverage taxes (soda taxes) imposed on the distribution or sale of sugar-sweetened drinks. Currently enforced in several major cities including Philadelphia, Seattle, and Boulder.
View fee schedule →United StatesU.S. Federal and State Tobacco and Vaping Excise Taxes
Reference for U.S. federal tobacco excise tax rates and an overview of state cigarette and vaping tax structures, covering cigarettes, cigars, smokeless tobacco, and e-cigarettes.
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