Cannabis excise tax by state in 2024 is not one flat number. It is a patchwork of state excise rates, special cannabis sales taxes, and local add-ons that stack on top of ordinary sales tax. There is no federal cannabis excise tax, so the rate on your receipt depends entirely on where the legal sale happens — and whether you buy medical or adult-use.
Key Features
- Rates are set state by state; no national cannabis excise rate exists.
- Retail-collected excise shows up at the register: Washington 37%, Oregon 17%, California 15%.
- Wholesale and cultivation taxes are usually baked into the shelf price instead, as in Colorado's 15% excise or Alaska's weight-based grower tax.
- Tiered systems price tax by product: Illinois charges 10%, 20%, or 25% depending on THC level and product type.
- New York adds a potency-based wholesale tax on top of its 13% retail excise.
- Cities and counties may add local cannabis taxes, so two stores in one state can differ.
- Medical programs are often taxed lower or exempt, as in Montana's reduced patient rate.
How the tax is calculated at checkout
Most states apply the cannabis excise percentage to your subtotal, then calculate general sales tax on the combined amount, which is why the final total can run noticeably higher than the menu price. Potency- or weight-based charges originate upstream at cultivation or wholesale and are already folded into the sticker price you see. Local option taxes are added last, and itemization varies — some states print excise as a separate line, others blend it into the shelf price.
What about ordering and delivery?
Eden Cannabis fulfills orders only within the state where the sale is legal, through in-store pickup and licensed local delivery; cannabis cannot legally cross state lines. If an item arrives damaged, incorrect, or short, contact us and we will arrange a replacement or refund under our standard policy.
Which state has the highest cannabis excise tax in 2024?
Washington is widely cited as the highest, with a 37% excise tax applied at retail on top of regular sales tax.
Do you pay excise tax and sales tax on the same purchase?
In most legal states, yes. The cannabis excise is added first and general sales tax is then calculated on the higher total.
Is medical cannabis taxed the same way?
Usually not. Many states reduce or waive excise and sales tax for registered medical patients, so the same product can cost less at the counter.