Institute on Taxation and Economic Policy
The ITEP Guide to State & Local Taxes

Other Revenues

How Do States Tax Cannabis?

How Do States Tax Cannabis?

A growing number of states are legalizing and taxing cannabis. Cannabis taxes are raising revenue for education, health care, and addressing substance abuse while encouraging consumers to moderate their use. But high cannabis taxes also mean that low-income communities previously targeted for enforcement now pay a disproportionate share of tax.