How is Adult-Use Cannabis Taxed by Your Local Government?

Twenty states have legalized the sale of cannabis for general adult use, and sales are already underway in 19 of those states. Local authority to tax cannabis sales varies considerably across states. Eleven states allow local governments to levy standalone excise taxes applying narrowly to cannabis purchases. These taxes are most commonly capped at 3 percent of the sales price, though some states set a different limit or no limit at all. Most local excise taxes on cannabis are levied in states that do not permit local governments to levy general sales taxes, though four states allow locals to levy both excise and general sales taxes on cannabis. Just three states prevent local governments from levying any kind of excise or sales tax on cannabis.

You can also find details on cannabis taxes by state.

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