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State
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Tax Rates
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Recreational Marijuana Revenue Allocations
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Alaska
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Weight-based Excise Tax:
$50/ounce for flowers/mature buds.
$25/ounce for immature or abnormal buds
$15/ounce for trim Clones: flat rate of $1 per clone
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25% to the general fund.
50% to the Department of Public Safety, Health and Social Services, and Department of Corrections.
25% to the Marijuana Education Fund
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Arizona
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15% Excise tax
5.6% Transaction Privilege Tax
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The excise tax is distributed to: Community Colleges
Municipal police Fire districts
The Highway User Fund
The Justice Reinvestment Fund The Attorney General
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California
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15% Excise tax on retail sales
7.25% Sales tax
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First, marijuana revenue covers regulatory and research costs.
The remainder is distributed as follows:
- 60% goes to anti-drug programs targeting kids;
- 20% goes to environmental programs; and 20% goes to public safety.
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Colorado
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15% Wholesale tax
15% Sales tax
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10% goes to local governments. 90% goes to the state government.
15.56% of the state revenue goes to the general fund. 12.59% goes to the state public school fund.
71.85% goes to the marijuana tax cash fund.
The cannabis tax revenue from the wholesale tax goes to the Building Excellent Schools Today (BEST) fund. The first
$40 million is earmarked for constructing new schools.
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Connecticut
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0.625 cents/milligram of THC for cannabis flower.
2.75 cents/milligram for edibles.
0.9 cents/milligram for other products
6.35% Sales tax
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During the first two fiscal years, marijuana revenue will go towards supporting administrative costs. The remainder will be distributed as follows:
- 15% to the General Fund
- 60% of the remaining revenue will go toward social equity programs.
- 5% of the remaining revenue will go toward substance misuse treatment programs.
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Delaware
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15% Sales tax
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Marijuana tax revenue will go to the Marijuana Regulation Fund. 7% will be credited to the Justice Reinvestment Fund to be used for projects to improve the quality of life for communities most impacted by the prohibition of marijuana.
The legislature will be able to decide how to distribute the remainder of the funds after covering administrative costs.
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Illinois
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7% of gross receipts from the sale of cannabis by a cultivator or craft grower
Excise Tax:
10% of purchase price – cannabis with THC level at or below 35%
20% of purchase price – all cannabis infused products
25% of the purchase price – cannabis with THC level above 35%
6.25% Sales and use tax
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35% to the general fund
25% to the Illinois Recover, Reinvest and Renew Program 20% to mental health and substance abuse
10% to pay state bills 8% to local government 2% to public education
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Maine
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$335/pound for flowers or mature plants
$94/pound for trim,
$1.50/immature plants
$0.30/seed
10% Sales tax
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12% to Adult Use Marijuana Public Health and Safety Fund
88% to the general fund
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Maryland
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9% Sales tax
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Marijuana revenue is used to cover the cost of the Maryland Cannabis Administration. The remainder of tax revenue is allocated in the following ways:
- 35% to the Community Reinvestment and Repair Fund. 5% to counties.
- 5% to the Cannabis Public Health Fund.
- 5% to the Cannabis Business Assistance Fund. Any remaining balance to the state general fund.
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Massachusetts
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10.75% Excise tax
6.25% Sales tax
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Sales tax revenue goes to the general fund, the Massachusetts Bay Transportation Authority, and the School Building Authority.
The excise tax support programs like the Alcoholic Beverages Control Commission and the Cannabis Control Commission.
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Michigan
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10% Excise tax
6% Sales tax
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Michigan's Marijuana Regulation Fund distributes tax revenues as follows:
- 15% to municipalities
- 15% to counties
- 35% to the Statewide School Aid Fund 35% to the Michigan Transportation Fund
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Minnesota
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10% Excise tax
6.875% Sales tax
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Marijuana revenue will be split 80/20 between state and local government. The revenue is expected to be directed towards education, prevention, outreach, and research
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Missouri
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6% Sales tax
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Marijuana tax revenue is first used to cover operational costs and then to expenses incurred by the court system for expunging marijuana expenses from people's criminal records. Remaining revenues are split three ways:
- Public defenders.
- Drug addiction treatment.
- Veterans.
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Montana
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20% Excise tax
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$6,000,000 to the HEART program
20% of remaining revenue to Fish, Wildlife and Parks 3% or $200,000, whichever is less, to veterans and surviving spouses
$150,000 to crisis treatment and training Remainder to general fund
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Nevada
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10% Retail excise tax 15% Wholesale excise tax
6.85% Sales tax
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The retail tax revenue goes to the state's rainy day fund. Revenue from the wholesale tax goes to cover expenses and boost the rainy fund as well.
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New Jersey
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6.625% Sales tax
One third of 1% of the statewide average retail price
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At least 70% of all marijuana tax revenues are used for investing in impact zones, which are defined as cities with high crime indexes or high unemployment rates. The remainder is used to:
- Oversee development, regulation, and enforcement of activities associated with the personal use of cannabis. Reimburse the cost of training police officers to detect and apprehend drug-impaired drivers.
- Further investments in impact zones, including direct financial assistance for people living in them.
- Any remaining money is deposited in the state general fund.
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New Mexico
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12% Excide tax
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Two-thirds is deposited to the State General Fund
One-third of collections goes back to local governments
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New York
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$0.005/ milligram of the amount of total THC concentrated cannabis:
$0.008/milligram of the amount of total THC and○ cannabis edible product
$0.03/milligram of the amount of total THC
13% of the amount charged for adult-use cannabis products (9% retail tax and 4% state and local tax
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Marijuana taxes are deposited into the New York State Cannabis Revenue Fund. The revenue covers the costs of administering cannabis programs and implementing the MRTA, including the OCM’s operating costs, increasing Drug Recognition Expert (DRE) training, and implementing incubators and workforce development for social and economic equity applicants. The remainder is distributed as follows:
- 40% to the State Lottery fund for education purposes. 40% to the Community Grants Reinvestment Fund.
- 20% to the Drug Treatment and Public Education Fund
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Ohio
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10% excise tax
Sales tax
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Tax revenue from the adult use cannabis tax is deposited into the adult use tax fund. The tax commissioner provides data to the director of the office of budget and management for further distribution. According to R.C. 3780.23, the revenue is distributed as follows:
- 36% to the Cannabis Social Equity and Jobs Fund: Used for social equity and job initiatives.
- 36% to the Host Community Cannabis Fund: Benefits municipal corporations or townships with adult use dispensaries.
- 25% to the Substance Abuse and Addiction Fund: Supports substance abuse and addiction services.
- 3% to the Division of Cannabis Control and Tax Commissioner Fund: Supports the operations of the Division of Cannabis Control and covers the tax administration costs.
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Oregon
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17% Retail sales tax
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40% to the state school fund
20% to mental health, alcoholism, and drug services 15% to the Oregon State Police
5% to the Oregon Health Authority for drug treatment and prevention
10% to cities
10% to counties
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Virginia*
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N/A
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*The possession and use of recreational marijuana was legalized in 2021 by lawmakers. The sale of marijuana is not yet legal in Virginia.
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Vermont
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15% Excise tax
6% Sales tax
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fund a grant program to start or expand afterschool and summer learning programs, with a focus on increasing access in underserved areas of the State
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Washington
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37% Excise tax
6.5% Sales tax
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Marijuana tax revenue is distributed towards healthcare, the state general fund, local governments, and state-run programs.
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Virgin Islands
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18% tax on sales
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Three-fourths of the tax revenue will go to the general fund. Of that amount, 15% is earmarked for behavioral health programs, 5% to address homelessness, and 5% for youth programs
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