24 States That Tax Cannabis (And How Much You'll Pay)

The recreational use of cannabis is now legal in 24 states, as well as the District of Columbia. In fact, more than half of Americans live in states where sparking up is completely legal.

Since around 15% of Americans say they smoke cannabis, there’s a non-zero chance you’re among the tokers. And if you are, it’s important to know how much you’ll pay in taxes on that cannabis so you can avoid wasting money.

Here’s how much you might pay on marijuana taxes in these 24 states in 2025.

Alaska might be chilly and remote, but at least there are Alaskan huskies to snuggle up with. If there’s a more herbal consideration on your mind, you’ll be paying an excise tax from $50 per ounce to $12.50 per ounce.

Arizona gave the go-ahead for recreational weed use in 2020, provided you’re over 21. You can have up to 1 ounce of marijuana or 5 grams or less of cannabis concentrate. But there’s gonna be a transaction privilege tax (TPT for short) if you buy it in the order of 16%.

California was one of the first states to legalize recreational marijuana use — it started in 2016. There’s a 15% excise tax to buy some bud. There’s an extra provision in California SB 1059 that prevents cities and counties from counting excise taxes or sales and use taxes on cannabis as part of “gross receipts” when calculating any local tax or fee applied to cannabis retailers.

Congratulations, Colorado — you were the first state to legalize adult recreational marijuana use in 2014. However, that comes with some caveats, including a 15% retail tax and the possibility that some counties and municipalities might leverage an additional excise tax, but only up to 5%.

Connecticut levies its weed taxes based on the kind of marijuana product sold and its potency. To wit:

• Plant materials: Six hundred twenty-five-thousandths of one cent ($0.00625) per milligram of total THC;
• Cannabis edible products: Two and seventy-five-hundredths cents ($0.0275) per milligram of total THC;
• Cannabis, other than cannabis plant material or cannabis edible products: Nine-tenths of one cent ($0.009) per milligram of total THC.

It’s not technically legal, but in the nation’s capital, adults 21 and over can have up to 2 ounces of marijuana, share 1 ounce, and grow six plants. Recreational sales remain illegal due to Congressional restrictions barring a regulatory board. Without licensed retailers, the adult-use market depends on gifting services.

It has a relatively benign tax rate of 6%.

Delaware — the First State — definitely wasn’t the first to legalize recreational marijuana sales. It only approved it in 2023, but it does have its own Office of the Marijuana Commissioner, albeit before sales licenses actually go out.

According to the Tax Foundation, the state’s OMC will begin issuing those licenses in 2025, with a 15% tax on sales.

The Land of Lincoln has a low tax rate on marijuana sales — 7% — but it can vary by the THC (tetrahydrocannabinol, i.e., the psychoactive ingredient) amount.

The state breaks it down thusly:

• 10% of the purchase price for the purchase from a cannabis retailer of adult-use cannabis with an adjusted THC level of 35% or less
• 25% of the purchase price for the purchase from a cannabis retailer of adult-use cannabis with an adjusted THC level above 35%
• 20% of the purchase price for the purchase from a cannabis retailer of adult-use cannabis-infused products

Maine’s taxes on marijuana vary by type.

As such, you’ll pay $335 per pound or fraction thereof of flower, $94 per pound or fraction of trim, $1.50 per immature cannabis plant or seedling, and $35 per mature cannabis plant sold.

Maryland has a straightforward 9% sales tax on marijuana sales.

There are a bunch of sales taxes to be aware of if you’re buying bud in Massachusetts. They include:

• A state sales tax: 6.25%
• A state excise tax 10.75%
• A local option tax for cities or towns: up to 3%

You’ve got a couple of stacked taxes when buying weed in Michigan.

For starters, there’s a 10% excise tax. Then there’s the state’s own 6% sales tax. On the plus side, you are the home of “RoboCop.”

Minnesota has a 10% sales tax on marijuana sales.

Montana imposes relatively high (no pun intended) taxes on marijuana sales: 20% for adult sales, and some counties can impose additional taxes.

If you’re looking to buy weed in Missouri, you’ll be paying a 6% sales tax. And there may be additional taxes depending on where you live.

Nevada, home to the City of Sin, taxes marijuana sales at a flat 10% for retail.

New Jersey voted nearly 67% in favor of legalizing marijuana in 2020. But there are a couple of things to remember: First, there will be a sales tax of 6.625% and a “social equity excise fee” of 1/3 of 1%.

If you’re looking to buy weed in New Mexico, get ready to cough up 12%, which will jump by one-percent increments starting July 1, 2025, to a maximum of 18% beginning July 1, 2030.

Speaking from experience as a New Yorker, the state and city are a rambunctious place. But weed sales in NYC hover somewhere near the $1 billion mark, so take that as you will.

New York has a 9% on retail sales, 9% on wholesale, and 4% local tax on retail sales.

Ohio has a straight 10% tax rate on marijuana sales in the state.

Oregon hasn’t shied away from marijuana. It passed its own legalization bill in 2015.

As it stands, licensed marijuana retailers are looking at a 17% retail sales tax for all recreational marijuana sales. But there might be an extra 3%. The Oregon Department of Revenue collects local marijuana taxes for numerous cities and counties.

Rhode Island, the country’s smallest state, has a 10% retail tax on weed sales; counties may add 3%.

Vermont is home to Ben & Jerry’s and has one of the highest retail marijuana taxes, at 14%.

Washington state has what some might call an absurd tax rate on marijuana sales: 37%. That’s … well, that’s quite a lot. Sorry, Washingtonians.

Many states are looking to see if the legalization and taxation of marijuana is a means to fill their coffers. The estimated revenue hovers around $3 billion — and that’s just right now. The Tax Foundation posits that “Nationwide legalization could generate $8.5 billion annually for all states.”

At those tax rates, you might not save much money on essentials, but you might have more fun at the store.