🕷️ Crawler Inspector

URL Lookup

Direct Parameter Lookup

Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 25 (from laksa170)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa025.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://taxfoundation.org/data/all/state/state-recreational-marijuana-taxes-2021/\')), getAhrefsUnparsedNoserviceFromURL(\'https://taxfoundation.org/data/all/state/state-recreational-marijuana-taxes-2021/\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/taxfoundation.org\/data\/all\/state\/state-recreational-marijuana-taxes-2021\/","crawl_time":1775981005,"first_indexed_time":1691045909,"http_code":200,"src_unparsed":"org,taxfoundation!\/data\/all\/state\/state-recreational-marijuana-taxes-2021\/ s443","src_root_hash":"7603385904904516025","history_drop_reason":null,"meta_title":"State Recreational Marijuana Taxes, 2021 | Tax Foundation","meta_descriptions":["The legalization and taxation of recreational marijuana remains one of the hottest trends in state taxation. Compare state recreational marijuana taxes."],"attrs_boilerpipe_text":"The legalization and\ntax\nation of recreational marijuana remains one of the hottest trends in state taxation. Currently, 16 states\n(\nAlaska\n,\nArizona\n,\nCalifornia\n,\nColorado\n,\nIllinois\n,\nMaine,\nMassachusetts\n,\nMichigan\n,\nMontana\n,\nNevada\n,\nNew Jersey\n,\nNew York\n,\nOregon,\nSouth Dakota\n,\nVermont\n,\nand\nWashington\n)\nand\nthe District of Columbia\nhave passed bills or approved ballot measures that allow for the sale of recreational marijuana, and more states are poised to pass legislation this session. In total, actual recreational marijuana sales are happening in 11 states.\nThe\nVirginia\nlegislature now has passed a bill that would legalize sales starting in 2024; legislators are currently working with Gov. Ralph Northam (D) to amend and finalize legislation.\nNew Mexico\nlawmakers are very likely to pass legislation during an ongoing special session.\nVoters in four states approved ballot measures in November, but only one state (Arizona) has established an operational marketplace. Vermont, which passed legalization back in 2018, has finally approved legislation, and the state plans to be operational starting in 2022. Recreational sales are delayed due to pending legal action in\nSouth Dakota\nand federal prohibition in the District of Columbia, although\nchange\nis on the horizon in DC.\nThe unique legal framework under which marijuana use and sales operate—that of differing state and federal legality—means that every state market is essentially a siloed market. Marijuana products cannot cross state borders, so the entire process (seed to smoke, so to speak) must occur within state borders. This unusual situation, along with the novelty of legalization, has resulted in a wide variety of\ntax\nA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities.\ndesigns.\nThe following map highlights the states that have legal markets and levy taxes on recreational marijuana.\nState Recreational Marijuana Taxes (State Excise Tax Rates on Recreational Marijuana)\nAs of March 31, 2021\nState\nTax Rate\nAlaska \n$50\/oz. mature flowers;\n$25\/oz. immature flowers;\n$15\/oz. trim, $1 per clone\nAriz.\n16% excise tax (retail price)\nCalif.\n15% excise tax (levied on wholesale at average market rate);\n$9.65\/oz. flowers & $2.87\/oz. leaves cultivation tax;\n$1.35\/oz fresh cannabis plant\nColo.\n15% excise tax (levied on wholesale at average market rate);\n15% excise tax (retail price) \nIll.\n7% excise tax of value at wholesale level;\n10% tax on cannabis flower or products with less than 35% THC;\n20% tax on products infused with cannabis, such as edible products;\n25% tax on any product with a THC concentration higher than 35%\nMaine\n10% excise tax (retail price), $335\/lb. flower;\n$94\/lb. trim;\n$1.5 per immature plant or seedling;\n$0.3 per seed\nMass.\n10.75% excise tax (retail price)\nMich.\n10% excise tax (retail price)\nMont. (a)\n20% excise tax (retail price)\nNev.\n15% excise tax (fair market value at wholesale);\n10% excise tax (retail price)\nN.J. (a, b)\nUp to $10 per ounce, if the average retail price of an ounce of usable cannabis was $350 or more;\nup to $30 per ounce, if the average retail price of an ounce of usable cannabis was less than $350 but at least $250;\nup to $40 per ounce, if the average retail price of an ounce of usable cannabis was less than $250 but at least $200;\nup to $60 per ounce, if the average retail price of an ounce of usable cannabis was less than $200\nN.Y. (a, c)\n$0.005 per milligram of THC in flower\n$0.008 per milligram of THC in concentrates\n$0.03 per milligram of THC in edibles\n9% excise tax (retail price)\nOre.\n17% excise tax (retail price) \nS.D. (a)\n15% excise tax (retail price)\nVt. (a)\n14% excise tax (retail price)\nWash.\n37% excise tax (retail price)\n(a) As of March 2021, retail sale of recreational marijuana has not yet started.\n(b) Rates were determined as of February 22, 2021. \n(c) Rates were determined as of March 30, 2021.\nNote: District of Columbia voters approved legalization and purchase of marijuana in 2014 but federal law prohibits any action to implement it. In 2018, the New Hampshire legislature voted to legalize the possession and growing of marijuana, but sales are not permitted. Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Nebraska, North Carolina, South Carolina, Oklahoma, Rhode Island, and Tennessee impose a controlled substance tax on the purchase of illegal products. Several states impose local taxes as well as general sales taxes on marijuana products. Those are not included here.\nSources: State statutes; Bloomberg Tax. \nThe multitude of approaches makes any apples-to-apples comparison of rates difficult, but Washington state has the highest statewide retail-level\nexcise tax\nAn excise tax is a tax imposed on a specific good or activity. Excise taxes are commonly levied on cigarettes, alcoholic beverages, soda, gasoline, insurance premiums, amusement activities, and betting, and typically make up a relatively small and volatile portion of state and local and, to a lesser extent, federal tax collections.\n,\nat 37 percent. \nNew York\n, the most recent addition, is the first state to implement a potency-based tax by milligrams of THC.\nAs the table indicates, most states have applied a price-based (\nad valorem\n) tax on retail sales of recreational marijuana. Levying the tax on retail sales allows for simplicity because there is a taxable event with a transaction, allowing for simple valuation. Although \nad valorem \ntaxation is simple, it is neither neutral nor equitable. In order to tax marijuana efficiently, the tax should be levied at a rate that corresponds to the societal costs, called externalities, associated with the product. These externalities share no association with the price.\nA profitable new industry to tax is understandably enticing to many lawmakers, but an\nexcise tax\non recreational marijuana should be based on the following principles:\nTax rates should be low enough to allow legal markets to undercut, or at least gain price parity with, the illicit market;\nTaxes should be designed to offer stable revenue in the short term regardless of potential price declines; and\nTaxes should raise enough revenue to fund marijuana-related spending priorities and cover the societal cost related to consumption.\nA tax system following these principles would be based on weight or potency, have relatively low rates, and allocate revenue to offset societal costs associated with recreational marijuana consumption.\nOf the states that have passed legislation, all but Alaska, Colorado, Maine, Montana, and Oregon levy the general \nsales tax\n on marijuana sales in addition to excise taxes. Alaska, Montana, and Oregon do not levy a statewide general\nsales tax\nA sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. \nin the first place, and Maine and Colorado levy retail-level excise taxes in lieu of, and with higher rates, than their general rates.\nOne of the great challenges with tax design for recreational marijuana is the amount of product types available on the market. Today, consumers can purchase THC-containing products in many different shapes and forms. Anything from traditional pre-rolled joints and brownies to THC-containing sparkling water and the yet unknown products to come. Any tax system should either be nimble enough or updated frequently enough to capture new products as they enter the market.\nThere are still many unknowns when it comes to the taxation of recreational marijuana, but as more states open legal marketplaces and more research is done to understand the externalities of consumption, more data will be available.\nFor more discussion on the trade-offs of marijuana tax structures and general excise tax design, see our \nrecent report\n.\nStay informed on the tax policies impacting you.\nSubscribe to get insights from our trusted experts delivered straight to your inbox.\nSubscribe","attrs_markdown":"[Skip to content](https:\/\/taxfoundation.org\/data\/all\/state\/state-recreational-marijuana-taxes-2021\/#main)\n\n- [US](https:\/\/taxfoundation.org\/)\n- [Europe](https:\/\/taxfoundation.org\/eu)\n- - [EN](https:\/\/taxfoundation.org\/data\/all\/state\/state-recreational-marijuana-taxes-2021\/ \"Switch to EN\")\n\n[![Tax Foundation](https:\/\/taxfoundation.org\/wp-content\/themes\/taxfoundation\/assets\/img\/tf-logo.svg)](https:\/\/taxfoundation.org\/ \"Tax Foundation\")\n\n- [Subscribe](https:\/\/taxfoundation.org\/tax-newsletter\/)\n- [Donate](https:\/\/taxfoundation.org\/donate)\n\n- [Research](https:\/\/taxfoundation.org\/research\/)\n  - - - [Research Areas](https:\/\/taxfoundation.org\/research\/)\n        - [Federal Tax](https:\/\/taxfoundation.org\/research\/federal-tax\/)\n        - [State Tax](https:\/\/taxfoundation.org\/research\/state-tax\/)\n        - [Global Tax](https:\/\/taxfoundation.org\/research\/global-tax\/)\n        - [EU Tax](https:\/\/taxfoundation.org\/research\/global-tax\/eu-tax\/)\n      - [All Research](https:\/\/taxfoundation.org\/all-research-data\/?post_types=all-research#results)\n      - [Meet Our Experts](https:\/\/taxfoundation.org\/about-us\/staff-and-board\/experts\/)\n    - - [Featured Projects](https:\/\/taxfoundation.org\/all-research-data\/?post_types=all-research#results)\n        - [Tariff Tracker](https:\/\/taxfoundation.org\/research\/all\/federal\/trump-tariffs-trade-war\/)\n        - [FAQ: One Big Beautiful Bill Act](https:\/\/taxfoundation.org\/research\/all\/federal\/one-big-beautiful-bill-act-tax-changes\/)\n        - [2026 Tax Calculator](https:\/\/taxfoundation.org\/data\/all\/federal\/tax-calculator-obbba\/)\n        - [Growth and Opportunity Tax Plan](https:\/\/taxfoundation.org\/research\/all\/federal\/growth-opportunity-us-tax-reform-plan\/)\n        - [Federal Tax Modeling](https:\/\/taxfoundation.org\/topics\/economic-and-tax-modeling\/)\n        - [State Reforms for Mobility and Modernization](https:\/\/taxfoundation.org\/research\/all\/state\/remote-work-tax-reform-mobility-modernization\/)\n        - [*State Tax Competitiveness Index*](https:\/\/taxfoundation.org\/research\/all\/state\/2026-state-tax-competitiveness-index\/)\n        - [*International Tax Competitiveness Index*](https:\/\/taxfoundation.org\/research\/all\/global\/2025-international-tax-competitiveness-index\/)\n        - [*European Tax Policy Scorecard*](https:\/\/taxfoundation.org\/eu\/research\/european-tax-policy-scorecard\/)\n    - - [Featured Issues](https:\/\/taxfoundation.org\/all-research-data\/?post_types=all-research#results)\n        - [Tariffs & Trade](https:\/\/taxfoundation.org\/topics\/tariffs-and-trade\/)\n        - [One Big Beautiful Bill Act](https:\/\/taxfoundation.org\/tags\/one-big-beautiful-bill-act-obbb\/)\n        - [Property Taxes](https:\/\/taxfoundation.org\/research\/state-tax\/property-tax-relief\/)\n        - [Global Tax Deal](https:\/\/taxfoundation.org\/tags\/global-tax-deal\/)\n        - [Debt & Deficits](https:\/\/taxfoundation.org\/tags\/debt-and-interest-rates)\n        - [Cost Recovery](https:\/\/taxfoundation.org\/topics\/cost-recovery\/)\n        - [Taxes on Savers & Investors](https:\/\/taxfoundation.org\/tags\/taxing-savers-and-investors\/)\n        - [State Tax Trends](https:\/\/taxfoundation.org\/tags\/state-tax-trends\/)\n    - - #### Latest Research\n        - [![Senator Chris Van Hollen tax cut plan Working Americans’ Tax Cut Act and Senator Cory Booker Tax Cut Plan Keep Your Pay Act](https:\/\/taxfoundation.org\/wp-content\/uploads\/2026\/03\/Copy-of-Copy-of-Heading-1-300x240.png)](https:\/\/taxfoundation.org\/research\/all\/federal\/van-hollen-cory-booker-tax-cut-plans\/)\n          \n          ### [Details and Analysis of the Van Hollen and Booker Tax Cut Plans](https:\/\/taxfoundation.org\/research\/all\/federal\/van-hollen-cory-booker-tax-cut-plans\/)\n          9 min read\n- [Experts](https:\/\/taxfoundation.org\/about-us\/staff-and-board\/experts\/)\n- [Data](https:\/\/taxfoundation.org\/data\/)\n  - - - [Data Areas](https:\/\/taxfoundation.org\/all-research-data\/?post_types=all-data#results)\n        - [Federal Tax](https:\/\/taxfoundation.org\/data\/federal-tax\/)\n        - [State Tax](https:\/\/taxfoundation.org\/data\/state-tax\/)\n        - [Global Tax](https:\/\/taxfoundation.org\/data\/global-tax\/)\n        - [EU Tax](https:\/\/taxfoundation.org\/data\/global-tax\/eu-tax\/)\n      - [All Data](https:\/\/taxfoundation.org\/all-research-data\/?post_types=all-data#results)\n      - [Meet Our Experts](https:\/\/taxfoundation.org\/about-us\/staff-and-board\/experts\/)\n    - - [Featured Projects](https:\/\/taxfoundation.org\/all-research-data\/?post_types=all-data#results)\n        - [*Facts & Figures: How Does Your State Compare?*](https:\/\/taxfoundation.org\/data\/all\/state\/2026-state-tax-data\/)\n        - [Federal Income Tax Brackets](https:\/\/taxfoundation.org\/data\/all\/federal\/2026-tax-brackets\/)\n        - [2026 Tax Calculator](https:\/\/taxfoundation.org\/data\/all\/federal\/tax-calculator-obbba\/)\n        - [Who Pays Federal Income Taxes](https:\/\/taxfoundation.org\/data\/all\/federal\/latest-federal-income-tax-data-2025\/)\n        - [Federal Economic Data Dashboard](https:\/\/taxfoundation.org\/data\/federal-tax\/tax-trade-data-dashboard\/)\n        - [State and Local Tax Burdens](https:\/\/taxfoundation.org\/data\/all\/state\/tax-burden-by-state-2022\/)\n        - [Corporate Tax Rates Around the World](https:\/\/taxfoundation.org\/data\/all\/global\/corporate-tax-rates-by-country-2025\/)\n        - [Sources of Government Revenue in the OECD](https:\/\/taxfoundation.org\/data\/all\/global\/oecd-tax-revenue-by-country\/)\n    - - [Featured Issues](https:\/\/taxfoundation.org\/all-research-data\/?post_types=all-data#results)\n        - [State Data Explorer](https:\/\/taxfoundation.org\/data\/state-tax\/)\n        - [Country Data Explorer](https:\/\/taxfoundation.org\/data\/global-tax\/)\n        - [State Tax Maps](https:\/\/taxfoundation.org\/datamaps\/state-maps\/)\n        - [European Tax Maps](https:\/\/taxfoundation.org\/datamaps\/european-maps\/)\n    - - #### Latest Data\n        - [![Marijuana Taxes by State, 2026](https:\/\/taxfoundation.org\/wp-content\/uploads\/2025\/04\/does-your-state-tax-recreational-marijuana--292x300.png)](https:\/\/taxfoundation.org\/data\/all\/state\/recreational-marijuana-taxes\/)\n          \n          ### [Recreational Marijuana Taxes by State, 2026](https:\/\/taxfoundation.org\/data\/all\/state\/recreational-marijuana-taxes\/)\n          8 min read\n- [Blog & Commentary](https:\/\/taxfoundation.org\/blog-commentary\/)\n  - - - [Tax Policy Blog](https:\/\/taxfoundation.org\/blog)\n      - [See All Testimony](https:\/\/taxfoundation.org\/testimony\/)\n      - [See All Op-eds](https:\/\/taxfoundation.org\/op-eds\/)\n      - [*The Deduction* Podcast](https:\/\/taxfoundation.org\/podcast\/)\n      - [Meet Our Experts](https:\/\/taxfoundation.org\/about-us\/staff-and-board\/experts\/)\n    - - #### Latest Blog Post\n        - [![Maine Millionaire's Tax 2026](https:\/\/taxfoundation.org\/wp-content\/uploads\/2026\/04\/AdobeStock_113592543-300x200.jpeg)](https:\/\/taxfoundation.org\/blog\/maine-millionaire-tax-harm-economy\/)\n          \n          ### [Maine’s Proposed Millionaire’s Tax Would Harm the State’s Economy](https:\/\/taxfoundation.org\/blog\/maine-millionaire-tax-harm-economy\/)\n          5 min read\n    - - #### Latest Testimony\n        - [![Nebraska property tax relief, assessment limits](https:\/\/taxfoundation.org\/wp-content\/uploads\/2026\/02\/AdobeStock_308303103-300x169.jpeg)](https:\/\/taxfoundation.org\/testimony\/nebraska-property-tax-assessment-limits\/)\n          \n          ### [Testimony: Assessment Limits and Property Taxes in Nebraska](https:\/\/taxfoundation.org\/testimony\/nebraska-property-tax-assessment-limits\/)\n    - - #### Latest Op-ed\n        - [![Corporate Income Tax Payments, One Big Beautiful Bill Act (OBBBA)](https:\/\/taxfoundation.org\/wp-content\/uploads\/2026\/04\/AdobeStock_704526626-300x200.jpeg)](https:\/\/taxfoundation.org\/oped\/corporate-tax-payments-obbba\/)\n          \n          ### [Corporate Tax Payments Will Fall This Year. Here’s Why That’s Good News.](https:\/\/taxfoundation.org\/oped\/corporate-tax-payments-obbba\/)\n- [Education](https:\/\/taxfoundation.org\/taxedu\/)\n  - - - [Tax Terms Glossary](https:\/\/taxfoundation.org\/taxedu\/glossary\/)\n      - [Explainer Videos](https:\/\/taxfoundation.org\/taxedu\/videos\/)\n      - [The Short Form Blog](https:\/\/taxfoundation.org\/tags\/the-short-form\/)\n      - [Our Principles](https:\/\/taxfoundation.org\/taxedu\/principles\/)\n    - - [Primers](https:\/\/taxfoundation.org\/taxedu\/educational-resources\/)\n      - [Legislative Courses](https:\/\/taxfoundation.org\/taxedu\/legislative-courses\/)\n        - [Tax Foundation University](https:\/\/taxfoundation.org\/taxedu\/legislative-courses\/tax-foundation-university\/)\n        - [State Tax Policy Boot Camp](https:\/\/taxfoundation.org\/taxedu\/legislative-courses\/state-tax-policy-boot-camp\/)\n    - - [Featured Resources](https:\/\/taxfoundation.org\/taxedu\/educational-resources\/)\n        - [The Three Basic Tax Types](https:\/\/taxfoundation.org\/taxedu\/educational-resources\/primer-the-three-basic-tax-types\/)\n        - [Not All Taxes Are Created Equal](https:\/\/taxfoundation.org\/taxedu\/educational-resources\/primer-not-all-taxes-are-created-equal\/)\n        - [History of Taxes](https:\/\/taxfoundation.org\/taxedu\/educational-resources\/primer-history-of-taxes\/)\n        - [10 Common Tax Myths, Debunked](https:\/\/taxfoundation.org\/taxedu\/educational-resources\/primer-10-common-tax-myths-debunked\/)\n        - [A Carbon Tax, Explained](https:\/\/taxfoundation.org\/taxedu\/videos\/carbon-tax-explained\/)\n        - [Common Tax Questions, Answered](https:\/\/taxfoundation.org\/taxedu\/educational-resources\/primer-common-tax-questions-answered\/)\n    - - #### Featured Term\n        - [![Capital gains realization rise when maximum tax rate on long-term gains falls capital gains tax definition](https:\/\/taxfoundation.org\/wp-content\/uploads\/2019\/04\/FF649_2-300x228.png)](https:\/\/taxfoundation.org\/taxedu\/glossary\/capital-gains-tax\/)\n          \n          ### [Capital Gains Tax](https:\/\/taxfoundation.org\/taxedu\/glossary\/capital-gains-tax\/)\n- [Events](https:\/\/taxfoundation.org\/events\/)\n- [About Us](https:\/\/taxfoundation.org\/about-us\/)\n  - - - [About Us](https:\/\/taxfoundation.org\/about-us\/)\n      - [Our Principles](https:\/\/taxfoundation.org\/taxedu\/principles\/)\n      - [Contact Us](https:\/\/taxfoundation.org\/about-us\/contact\/)\n    - - [Staff](https:\/\/taxfoundation.org\/about-us\/staff-and-board\/)\n        - [Meet Our Team](https:\/\/taxfoundation.org\/about-us\/staff-and-board\/)\n        - [Meet Our Experts](https:\/\/taxfoundation.org\/about-us\/staff-and-board\/experts\/)\n        - [Meet Our Board](https:\/\/taxfoundation.org\/about-us\/staff-and-board\/board\/)\n    - - [Careers](https:\/\/taxfoundation.org\/careers\/)\n        - [Job Openings](https:\/\/taxfoundation.org\/about-us\/careers\/#openings)\n        - [Internships](https:\/\/taxfoundation.org\/about-us\/careers\/internship\/)\n    - - [Support Our Work](https:\/\/taxfoundation.org\/donate\/)\n        - [Donate Today](https:\/\/taxfoundation.org\/donate\/)\n        - [Ways to Give](https:\/\/taxfoundation.org\/donate\/ways-to-give\/)\n        - [Donor FAQ](https:\/\/taxfoundation.org\/donate\/donor-faq\/)\n        - [Planned Giving](https:\/\/taxfoundation.org\/donate\/1937-legacy-society\/)\n\n[Home](https:\/\/taxfoundation.org\/) • [Data](https:\/\/taxfoundation.org\/data\/) • Recreational Marijuana Taxes by State, 2021\n\n# Recreational Marijuana Taxes by State, 2021\nMarch 31, 2021\n\nDecember 16, 2024\n\n6 min readBy: [Ulrik Boesen](https:\/\/taxfoundation.org\/about-us\/staff\/ulrik-boesen\/)\n\n[See Latest Version](https:\/\/taxfoundation.org\/data\/all\/state\/recreational-marijuana-taxes\/)\n\nThe legalization and [tax](https:\/\/taxfoundation.org\/tax-basics\/tax\/)ation of recreational marijuana remains one of the hottest trends in state taxation. Currently, 16 states ([Alaska](https:\/\/taxfoundation.org\/location\/alaska\/), [Arizona](https:\/\/taxfoundation.org\/location\/arizona\/), [California](https:\/\/taxfoundation.org\/location\/california\/), [Colorado](https:\/\/taxfoundation.org\/location\/colorado\/), [Illinois](https:\/\/taxfoundation.org\/location\/illinois\/), Maine, [Massachusetts](https:\/\/taxfoundation.org\/location\/massachusetts\/), [Michigan](https:\/\/taxfoundation.org\/location\/michigan\/), [Montana](https:\/\/taxfoundation.org\/location\/montana\/), [Nevada](https:\/\/taxfoundation.org\/location\/nevada\/), [New Jersey](https:\/\/taxfoundation.org\/location\/new-jersey\/), [New York](https:\/\/taxfoundation.org\/location\/new-york\/), Oregon, [South Dakota](https:\/\/taxfoundation.org\/location\/south-dakota\/), [Vermont](https:\/\/taxfoundation.org\/location\/vermont\/), and [Washington](https:\/\/taxfoundation.org\/location\/washington\/)) and [the District of Columbia](https:\/\/taxfoundation.org\/location\/the-district-of-columbia\/) have passed bills or approved ballot measures that allow for the sale of recreational marijuana, and more states are poised to pass legislation this session. In total, actual recreational marijuana sales are happening in 11 states.\n\nThe [Virginia](https:\/\/taxfoundation.org\/location\/virginia\/) legislature now has passed a bill that would legalize sales starting in 2024; legislators are currently working with Gov. Ralph Northam (D) to amend and finalize legislation. [New Mexico](https:\/\/taxfoundation.org\/location\/new-mexico\/) lawmakers are very likely to pass legislation during an ongoing special session.\n\nVoters in four states approved ballot measures in November, but only one state (Arizona) has established an operational marketplace. Vermont, which passed legalization back in 2018, has finally approved legislation, and the state plans to be operational starting in 2022. Recreational sales are delayed due to pending legal action in [South Dakota](https:\/\/www.foxnews.com\/politics\/legal-pot-rollouts-lag-amid-court-challenges-regulatory-confusion) and federal prohibition in the District of Columbia, although [change](https:\/\/www.fox5dc.com\/news\/bowser-rolls-out-dc-bill-clearing-way-for-legal-marijuana-sales) is on the horizon in DC.\n\nThe unique legal framework under which marijuana use and sales operate—that of differing state and federal legality—means that every state market is essentially a siloed market. Marijuana products cannot cross state borders, so the entire process (seed to smoke, so to speak) must occur within state borders. This unusual situation, along with the novelty of legalization, has resulted in a wide variety of [tax](https:\/\/taxfoundation.org\/taxedu\/glossary\/tax\/) A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. designs.\n\nThe following map highlights the states that have legal markets and levy taxes on recreational marijuana.\n\n[![State recreational marijuana taxes, state recreational marijuana tax rates, State excise taxes on recreational marijuana, New York recreational marijuana legalization 2021, state excise tax rates on recreational marijuana](https:\/\/taxfoundation.org\/wp-content\/uploads\/2021\/03\/State-recreational-marijuana-taxes-state-recreational-marijuana-tax-rates-State-excise-taxes-on-recreational-marijuana-New-York-recreational-marijuana-legalization-2021-state-excise-tax-rates.png)](https:\/\/taxfoundation.org\/wp-content\/uploads\/2021\/03\/State-recreational-marijuana-taxes-state-recreational-marijuana-tax-rates-State-excise-taxes-on-recreational-marijuana-New-York-recreational-marijuana-legalization-2021-state-excise-tax-rates.png)\n\n| *As of March 31, 2021* |   |\n|---|---|\n| State | Tax Rate |\n| Alaska | \\$50\/oz. mature flowers;  \\$25\/oz. immature flowers;  \\$15\/oz. trim, \\$1 per clone |\n| Ariz. | 16% excise tax (retail price) |\n| Calif. | 15% excise tax (levied on wholesale at average market rate);  \\$9.65\/oz. flowers & \\$2.87\/oz. leaves cultivation tax;  \\$1.35\/oz fresh cannabis plant |\n| Colo. | 15% excise tax (levied on wholesale at average market rate);  15% excise tax (retail price) |\n| Ill. | 7% excise tax of value at wholesale level;   10% tax on cannabis flower or products with less than 35% THC;   20% tax on products infused with cannabis, such as edible products;   25% tax on any product with a THC concentration higher than 35% |\n| Maine | 10% excise tax (retail price), \\$335\/lb. flower;  \\$94\/lb. trim;  \\$1.5 per immature plant or seedling;  \\$0.3 per seed |\n| Mass. | 10\\.75% excise tax (retail price) |\n| Mich. | 10% excise tax (retail price) |\n| Mont. (a) | 20% excise tax (retail price) |\n| Nev. | 15% excise tax (fair market value at wholesale);  10% excise tax (retail price) |\n| N.J. (a, b) | Up to \\$10 per ounce, if the average retail price of an ounce of usable cannabis was \\$350 or more;  up to \\$30 per ounce, if the average retail price of an ounce of usable cannabis was less than \\$350 but at least \\$250;  up to \\$40 per ounce, if the average retail price of an ounce of usable cannabis was less than \\$250 but at least \\$200;  up to \\$60 per ounce, if the average retail price of an ounce of usable cannabis was less than \\$200 |\n| N.Y. (a, c) | \\$0.005 per milligram of THC in flower  \\$0.008 per milligram of THC in concentrates  \\$0.03 per milligram of THC in edibles  9% excise tax (retail price) |\n| Ore. | 17% excise tax (retail price) |\n| S.D. (a) | 15% excise tax (retail price) |\n| Vt. (a) | 14% excise tax (retail price) |\n| Wash. | 37% excise tax (retail price) |\n| (a) As of March 2021, retail sale of recreational marijuana has not yet started. (b) Rates were determined as of February 22, 2021. (c) Rates were determined as of March 30, 2021. Note: District of Columbia voters approved legalization and purchase of marijuana in 2014 but federal law prohibits any action to implement it. In 2018, the New Hampshire legislature voted to legalize the possession and growing of marijuana, but sales are not permitted. Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Nebraska, North Carolina, South Carolina, Oklahoma, Rhode Island, and Tennessee impose a controlled substance tax on the purchase of illegal products. Several states impose local taxes as well as general sales taxes on marijuana products. Those are not included here. Sources: State statutes; Bloomberg Tax. |   |\n\nThe multitude of approaches makes any apples-to-apples comparison of rates difficult, but Washington state has the highest statewide retail-level [excise tax](https:\/\/taxfoundation.org\/taxedu\/glossary\/excise-tax\/) An excise tax is a tax imposed on a specific good or activity. Excise taxes are commonly levied on cigarettes, alcoholic beverages, soda, gasoline, insurance premiums, amusement activities, and betting, and typically make up a relatively small and volatile portion of state and local and, to a lesser extent, federal tax collections. , at 37 percent. [New York](https:\/\/taxfoundation.org\/new-york-marijuana-tax\/), the most recent addition, is the first state to implement a potency-based tax by milligrams of THC.\n\nAs the table indicates, most states have applied a price-based (*ad valorem*) tax on retail sales of recreational marijuana. Levying the tax on retail sales allows for simplicity because there is a taxable event with a transaction, allowing for simple valuation. Although *ad valorem* taxation is simple, it is neither neutral nor equitable. In order to tax marijuana efficiently, the tax should be levied at a rate that corresponds to the societal costs, called externalities, associated with the product. These externalities share no association with the price.\n\nA profitable new industry to tax is understandably enticing to many lawmakers, but an [excise tax](https:\/\/taxfoundation.org\/tax-basics\/excise-tax\/) on recreational marijuana should be based on the following principles:\n\n- Tax rates should be low enough to allow legal markets to undercut, or at least gain price parity with, the illicit market;\n- Taxes should be designed to offer stable revenue in the short term regardless of potential price declines; and\n- Taxes should raise enough revenue to fund marijuana-related spending priorities and cover the societal cost related to consumption.\n\nA tax system following these principles would be based on weight or potency, have relatively low rates, and allocate revenue to offset societal costs associated with recreational marijuana consumption.\n\nOf the states that have passed legislation, all but Alaska, Colorado, Maine, Montana, and Oregon levy the general [sales tax](https:\/\/taxfoundation.org\/tax-basics\/sales-tax\/) on marijuana sales in addition to excise taxes. Alaska, Montana, and Oregon do not levy a statewide general [sales tax](https:\/\/taxfoundation.org\/taxedu\/glossary\/sales-tax\/) A sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. in the first place, and Maine and Colorado levy retail-level excise taxes in lieu of, and with higher rates, than their general rates.\n\nOne of the great challenges with tax design for recreational marijuana is the amount of product types available on the market. Today, consumers can purchase THC-containing products in many different shapes and forms. Anything from traditional pre-rolled joints and brownies to THC-containing sparkling water and the yet unknown products to come. Any tax system should either be nimble enough or updated frequently enough to capture new products as they enter the market.\n\nThere are still many unknowns when it comes to the taxation of recreational marijuana, but as more states open legal marketplaces and more research is done to understand the externalities of consumption, more data will be available.\n\nFor more discussion on the trade-offs of marijuana tax structures and general excise tax design, see our [recent report](https:\/\/taxfoundation.org\/excise-taxes-excise-tax-trends\/#Marijuana).\n\n## Stay informed on the tax policies impacting you.\nSubscribe to get insights from our trusted experts delivered straight to your inbox.\n\n[Subscribe](https:\/\/taxfoundation.org\/tax-newsletter)\n\nShare this article\n\nTwitter\n\nLinkedIn\n\nFacebook\n\nEmail\n\n## About the Author\n[![Ulrik Boesen](https:\/\/taxfoundation.org\/wp-content\/uploads\/2019\/09\/Boesen-300x200.png)](https:\/\/taxfoundation.org\/wp-content\/uploads\/2019\/09\/Boesen.png)\n\n### [Ulrik Boesen](https:\/\/taxfoundation.org\/about-us\/staff\/ulrik-boesen\/)\nDirector of Excise Tax Policy\n\nUlrik is Director of Excise Tax Policy with the Center for State Tax Policy at the Tax Foundation. His focus is on excise taxation and supporting the team developing principled positions on various excise taxes ranging from gasoline to tobacco.\n\n## All Related Articles\n- [Data](https:\/\/taxfoundation.org\/all-research-data\/?post_types=all-data#results)\n  \n  April 1, 2026\n  \n  April 3, 2026\n  ### [Facts & Figures 2026: How Does Your State Compare?](https:\/\/taxfoundation.org\/data\/all\/state\/2026-state-tax-data\/)\n  Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.\n  \n  2 min read\n- Blog\n  \n  February 5, 2026\n  \n  February 5, 2026\n  ### [The State Income Tax Divergence](https:\/\/taxfoundation.org\/blog\/state-income-tax-trends\/)\n  Lawmakers in many states continue to pursue additional income tax relief, while their counterparts elsewhere pursue the opposite goal.\n  \n  3 min read\n- [Data](https:\/\/taxfoundation.org\/all-research-data\/?post_types=all-data#results)\n  \n  September 16, 2025\n  \n  September 15, 2025\n  ### [Online Sports Betting Taxes by State, 2025](https:\/\/taxfoundation.org\/data\/all\/state\/online-sports-betting-taxes\/)\n  Legal sports betting has grown rapidly since the Supreme Court granted states the ability to establish online sports betting markets in Murphy vs. NCAA in 2018.\n  \n  6 min read\n\n## Topics\n- [Cannabis Taxes](https:\/\/taxfoundation.org\/topics\/cannabis-taxes\/)\n- [Data](https:\/\/taxfoundation.org\/topics\/data\/)\n- [Excise Taxes](https:\/\/taxfoundation.org\/topics\/excise-taxes\/)\n- [Individual and Consumption Taxes](https:\/\/taxfoundation.org\/topics\/individual-and-consumption-taxes\/)\n\n## Locations\n- **Locations:**\n- [Alaska](https:\/\/taxfoundation.org\/location\/alaska\/)\n- [Arizona](https:\/\/taxfoundation.org\/location\/arizona\/)\n- [California](https:\/\/taxfoundation.org\/location\/california\/)\n- [Colorado](https:\/\/taxfoundation.org\/location\/colorado\/)\n- [Illinois](https:\/\/taxfoundation.org\/location\/illinois\/)\n- [Maine](https:\/\/taxfoundation.org\/location\/maine\/)\n- [Massachusetts](https:\/\/taxfoundation.org\/location\/massachusetts\/)\n- [Michigan](https:\/\/taxfoundation.org\/location\/michigan\/)\n- [Montana](https:\/\/taxfoundation.org\/location\/montana\/)\n- [Nevada](https:\/\/taxfoundation.org\/location\/nevada\/)\n- [New Jersey](https:\/\/taxfoundation.org\/location\/new-jersey\/)\n- [New York](https:\/\/taxfoundation.org\/location\/new-york\/)\n- [Oregon](https:\/\/taxfoundation.org\/location\/oregon\/)\n- [South Dakota](https:\/\/taxfoundation.org\/location\/south-dakota\/)\n- [Vermont](https:\/\/taxfoundation.org\/location\/vermont\/)\n- [Washington](https:\/\/taxfoundation.org\/location\/washington\/)\n\n## Authors\n- [![Ulrik Boesen](https:\/\/taxfoundation.org\/wp-content\/uploads\/2019\/09\/Boesen-300x200.png)](https:\/\/taxfoundation.org\/wp-content\/uploads\/2019\/09\/Boesen.png)\n  \n  ### [Ulrik Boesen](https:\/\/taxfoundation.org\/about-us\/staff\/ulrik-boesen\/)\n  Director of Excise Tax Policy\n\n[![Tax Foundation](https:\/\/taxfoundation.org\/wp-content\/themes\/taxfoundation\/assets\/img\/tf-logo.svg)](https:\/\/taxfoundation.org\/ \"Tax Foundation\")\n\nStay informed on the tax policies impacting you.\n\n[Subscribe](https:\/\/taxfoundation.org\/tax-newsletter\/)\n\n[About](https:\/\/taxfoundation.org\/about-us\/)  \nSince 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy in the U.S. and internationally. For over 80 years, our mission has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity.\n\n[Donate](https:\/\/taxfoundation.org\/donate\/)  \nAs a nonprofit, we depend on the generosity of individuals like you.\n\n- [Careers](https:\/\/taxfoundation.org\/about-us\/careers\/)\n- [Contact Us](https:\/\/taxfoundation.org\/about-us\/contact\/)\n\n1325 G St NW, Suite 950  \n Washington, DC 20005\n\n- Copyright Tax Foundation 2026\n- [Copyright Notice](https:\/\/taxfoundation.org\/copyright-notice)\n- [Privacy Policy](https:\/\/taxfoundation.org\/privacy-policy)","attrs_readable_markdown":"The legalization and [tax](https:\/\/taxfoundation.org\/tax-basics\/tax\/)ation of recreational marijuana remains one of the hottest trends in state taxation. Currently, 16 states ([Alaska](https:\/\/taxfoundation.org\/location\/alaska\/), [Arizona](https:\/\/taxfoundation.org\/location\/arizona\/), [California](https:\/\/taxfoundation.org\/location\/california\/), [Colorado](https:\/\/taxfoundation.org\/location\/colorado\/), [Illinois](https:\/\/taxfoundation.org\/location\/illinois\/), Maine, [Massachusetts](https:\/\/taxfoundation.org\/location\/massachusetts\/), [Michigan](https:\/\/taxfoundation.org\/location\/michigan\/), [Montana](https:\/\/taxfoundation.org\/location\/montana\/), [Nevada](https:\/\/taxfoundation.org\/location\/nevada\/), [New Jersey](https:\/\/taxfoundation.org\/location\/new-jersey\/), [New York](https:\/\/taxfoundation.org\/location\/new-york\/), Oregon, [South Dakota](https:\/\/taxfoundation.org\/location\/south-dakota\/), [Vermont](https:\/\/taxfoundation.org\/location\/vermont\/), and [Washington](https:\/\/taxfoundation.org\/location\/washington\/)) and [the District of Columbia](https:\/\/taxfoundation.org\/location\/the-district-of-columbia\/) have passed bills or approved ballot measures that allow for the sale of recreational marijuana, and more states are poised to pass legislation this session. In total, actual recreational marijuana sales are happening in 11 states.\n\nThe [Virginia](https:\/\/taxfoundation.org\/location\/virginia\/) legislature now has passed a bill that would legalize sales starting in 2024; legislators are currently working with Gov. Ralph Northam (D) to amend and finalize legislation. [New Mexico](https:\/\/taxfoundation.org\/location\/new-mexico\/) lawmakers are very likely to pass legislation during an ongoing special session.\n\nVoters in four states approved ballot measures in November, but only one state (Arizona) has established an operational marketplace. Vermont, which passed legalization back in 2018, has finally approved legislation, and the state plans to be operational starting in 2022. Recreational sales are delayed due to pending legal action in [South Dakota](https:\/\/www.foxnews.com\/politics\/legal-pot-rollouts-lag-amid-court-challenges-regulatory-confusion) and federal prohibition in the District of Columbia, although [change](https:\/\/www.fox5dc.com\/news\/bowser-rolls-out-dc-bill-clearing-way-for-legal-marijuana-sales) is on the horizon in DC.\n\nThe unique legal framework under which marijuana use and sales operate—that of differing state and federal legality—means that every state market is essentially a siloed market. Marijuana products cannot cross state borders, so the entire process (seed to smoke, so to speak) must occur within state borders. This unusual situation, along with the novelty of legalization, has resulted in a wide variety of [tax](https:\/\/taxfoundation.org\/taxedu\/glossary\/tax\/) A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. designs.\n\nThe following map highlights the states that have legal markets and levy taxes on recreational marijuana.\n\n[![State recreational marijuana taxes, state recreational marijuana tax rates, State excise taxes on recreational marijuana, New York recreational marijuana legalization 2021, state excise tax rates on recreational marijuana](https:\/\/taxfoundation.org\/wp-content\/uploads\/2021\/03\/State-recreational-marijuana-taxes-state-recreational-marijuana-tax-rates-State-excise-taxes-on-recreational-marijuana-New-York-recreational-marijuana-legalization-2021-state-excise-tax-rates.png)](https:\/\/taxfoundation.org\/wp-content\/uploads\/2021\/03\/State-recreational-marijuana-taxes-state-recreational-marijuana-tax-rates-State-excise-taxes-on-recreational-marijuana-New-York-recreational-marijuana-legalization-2021-state-excise-tax-rates.png)\n\n| *As of March 31, 2021* |   |\n|---|---|\n| State | Tax Rate |\n| Alaska | \\$50\/oz. mature flowers;  \\$25\/oz. immature flowers;  \\$15\/oz. trim, \\$1 per clone |\n| Ariz. | 16% excise tax (retail price) |\n| Calif. | 15% excise tax (levied on wholesale at average market rate);  \\$9.65\/oz. flowers & \\$2.87\/oz. leaves cultivation tax;  \\$1.35\/oz fresh cannabis plant |\n| Colo. | 15% excise tax (levied on wholesale at average market rate);  15% excise tax (retail price) |\n| Ill. | 7% excise tax of value at wholesale level;   10% tax on cannabis flower or products with less than 35% THC;   20% tax on products infused with cannabis, such as edible products;   25% tax on any product with a THC concentration higher than 35% |\n| Maine | 10% excise tax (retail price), \\$335\/lb. flower;  \\$94\/lb. trim;  \\$1.5 per immature plant or seedling;  \\$0.3 per seed |\n| Mass. | 10\\.75% excise tax (retail price) |\n| Mich. | 10% excise tax (retail price) |\n| Mont. (a) | 20% excise tax (retail price) |\n| Nev. | 15% excise tax (fair market value at wholesale);  10% excise tax (retail price) |\n| N.J. (a, b) | Up to \\$10 per ounce, if the average retail price of an ounce of usable cannabis was \\$350 or more;  up to \\$30 per ounce, if the average retail price of an ounce of usable cannabis was less than \\$350 but at least \\$250;  up to \\$40 per ounce, if the average retail price of an ounce of usable cannabis was less than \\$250 but at least \\$200;  up to \\$60 per ounce, if the average retail price of an ounce of usable cannabis was less than \\$200 |\n| N.Y. (a, c) | \\$0.005 per milligram of THC in flower  \\$0.008 per milligram of THC in concentrates  \\$0.03 per milligram of THC in edibles  9% excise tax (retail price) |\n| Ore. | 17% excise tax (retail price) |\n| S.D. (a) | 15% excise tax (retail price) |\n| Vt. (a) | 14% excise tax (retail price) |\n| Wash. | 37% excise tax (retail price) |\n| (a) As of March 2021, retail sale of recreational marijuana has not yet started. (b) Rates were determined as of February 22, 2021. (c) Rates were determined as of March 30, 2021. Note: District of Columbia voters approved legalization and purchase of marijuana in 2014 but federal law prohibits any action to implement it. In 2018, the New Hampshire legislature voted to legalize the possession and growing of marijuana, but sales are not permitted. Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Nebraska, North Carolina, South Carolina, Oklahoma, Rhode Island, and Tennessee impose a controlled substance tax on the purchase of illegal products. Several states impose local taxes as well as general sales taxes on marijuana products. Those are not included here. Sources: State statutes; Bloomberg Tax. |   |\n\nThe multitude of approaches makes any apples-to-apples comparison of rates difficult, but Washington state has the highest statewide retail-level [excise tax](https:\/\/taxfoundation.org\/taxedu\/glossary\/excise-tax\/) An excise tax is a tax imposed on a specific good or activity. Excise taxes are commonly levied on cigarettes, alcoholic beverages, soda, gasoline, insurance premiums, amusement activities, and betting, and typically make up a relatively small and volatile portion of state and local and, to a lesser extent, federal tax collections. , at 37 percent. [New York](https:\/\/taxfoundation.org\/new-york-marijuana-tax\/), the most recent addition, is the first state to implement a potency-based tax by milligrams of THC.\n\nAs the table indicates, most states have applied a price-based (*ad valorem*) tax on retail sales of recreational marijuana. Levying the tax on retail sales allows for simplicity because there is a taxable event with a transaction, allowing for simple valuation. Although *ad valorem* taxation is simple, it is neither neutral nor equitable. In order to tax marijuana efficiently, the tax should be levied at a rate that corresponds to the societal costs, called externalities, associated with the product. These externalities share no association with the price.\n\nA profitable new industry to tax is understandably enticing to many lawmakers, but an [excise tax](https:\/\/taxfoundation.org\/tax-basics\/excise-tax\/) on recreational marijuana should be based on the following principles:\n\n- Tax rates should be low enough to allow legal markets to undercut, or at least gain price parity with, the illicit market;\n- Taxes should be designed to offer stable revenue in the short term regardless of potential price declines; and\n- Taxes should raise enough revenue to fund marijuana-related spending priorities and cover the societal cost related to consumption.\n\nA tax system following these principles would be based on weight or potency, have relatively low rates, and allocate revenue to offset societal costs associated with recreational marijuana consumption.\n\nOf the states that have passed legislation, all but Alaska, Colorado, Maine, Montana, and Oregon levy the general [sales tax](https:\/\/taxfoundation.org\/tax-basics\/sales-tax\/) on marijuana sales in addition to excise taxes. Alaska, Montana, and Oregon do not levy a statewide general [sales tax](https:\/\/taxfoundation.org\/taxedu\/glossary\/sales-tax\/) A sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. in the first place, and Maine and Colorado levy retail-level excise taxes in lieu of, and with higher rates, than their general rates.\n\nOne of the great challenges with tax design for recreational marijuana is the amount of product types available on the market. Today, consumers can purchase THC-containing products in many different shapes and forms. Anything from traditional pre-rolled joints and brownies to THC-containing sparkling water and the yet unknown products to come. Any tax system should either be nimble enough or updated frequently enough to capture new products as they enter the market.\n\nThere are still many unknowns when it comes to the taxation of recreational marijuana, but as more states open legal marketplaces and more research is done to understand the externalities of consumption, more data will be available.\n\nFor more discussion on the trade-offs of marijuana tax structures and general excise tax design, see our [recent report](https:\/\/taxfoundation.org\/excise-taxes-excise-tax-trends\/#Marijuana).\n\n## Stay informed on the tax policies impacting you.\nSubscribe to get insights from our trusted experts delivered straight to your inbox.\n\n[Subscribe](https:\/\/taxfoundation.org\/tax-newsletter)","meta_canonical":null}

3. Robots.txt Check

Query:

Response:

4. Spam/Ban Check

Query:

Response:

5. Seen Status Check

ℹ️ Skipped - page is already crawled

📄

INDEXABLE

✅

CRAWLED

1 day ago

🤖

ROBOTS ALLOWED

Page Info Filters

Filter	Status	Condition	Details
HTTP status	PASS	`download_http_code = 200`	HTTP 200
Age cutoff	PASS	`download_stamp > now() - 6 MONTH`	0 months ago
History drop	PASS	`isNull(history_drop_reason)`	No drop reason
Spam/ban	PASS	`fh_dont_index != 1 AND ml_spam_score = 0`	ml_spam_score=0
Canonical	PASS	`meta_canonical IS NULL OR = '' OR = src_unparsed`	Not set

Page Details

Property	Value
URL	https://taxfoundation.org/data/all/state/state-recreational-marijuana-taxes-2021/
Last Crawled	2026-04-12 08:03:25 (1 day ago)
First Indexed	2023-08-03 06:58:29 (2 years ago)
HTTP Status Code	200
Meta Title	State Recreational Marijuana Taxes, 2021 \| Tax Foundation
Meta Description	The legalization and taxation of recreational marijuana remains one of the hottest trends in state taxation. Compare state recreational marijuana taxes.
Meta Canonical	null
Boilerpipe Text	The legalization and tax ation of recreational marijuana remains one of the hottest trends in state taxation. Currently, 16 states ( Alaska , Arizona , California , Colorado , Illinois , Maine, Massachusetts , Michigan , Montana , Nevada , New Jersey , New York , Oregon, South Dakota , Vermont , and Washington ) and the District of Columbia have passed bills or approved ballot measures that allow for the sale of recreational marijuana, and more states are poised to pass legislation this session. In total, actual recreational marijuana sales are happening in 11 states. The Virginia legislature now has passed a bill that would legalize sales starting in 2024; legislators are currently working with Gov. Ralph Northam (D) to amend and finalize legislation. New Mexico lawmakers are very likely to pass legislation during an ongoing special session. Voters in four states approved ballot measures in November, but only one state (Arizona) has established an operational marketplace. Vermont, which passed legalization back in 2018, has finally approved legislation, and the state plans to be operational starting in 2022. Recreational sales are delayed due to pending legal action in South Dakota and federal prohibition in the District of Columbia, although change is on the horizon in DC. The unique legal framework under which marijuana use and sales operate—that of differing state and federal legality—means that every state market is essentially a siloed market. Marijuana products cannot cross state borders, so the entire process (seed to smoke, so to speak) must occur within state borders. This unusual situation, along with the novelty of legalization, has resulted in a wide variety of tax A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. designs. The following map highlights the states that have legal markets and levy taxes on recreational marijuana. State Recreational Marijuana Taxes (State Excise Tax Rates on Recreational Marijuana) As of March 31, 2021 State Tax Rate Alaska $50/oz. mature flowers; $25/oz. immature flowers; $15/oz. trim, $1 per clone Ariz. 16% excise tax (retail price) Calif. 15% excise tax (levied on wholesale at average market rate); $9.65/oz. flowers & $2.87/oz. leaves cultivation tax; $1.35/oz fresh cannabis plant Colo. 15% excise tax (levied on wholesale at average market rate); 15% excise tax (retail price) Ill. 7% excise tax of value at wholesale level; 10% tax on cannabis flower or products with less than 35% THC; 20% tax on products infused with cannabis, such as edible products; 25% tax on any product with a THC concentration higher than 35% Maine 10% excise tax (retail price), $335/lb. flower; $94/lb. trim; $1.5 per immature plant or seedling; $0.3 per seed Mass. 10.75% excise tax (retail price) Mich. 10% excise tax (retail price) Mont. (a) 20% excise tax (retail price) Nev. 15% excise tax (fair market value at wholesale); 10% excise tax (retail price) N.J. (a, b) Up to $10 per ounce, if the average retail price of an ounce of usable cannabis was $350 or more; up to $30 per ounce, if the average retail price of an ounce of usable cannabis was less than $350 but at least $250; up to $40 per ounce, if the average retail price of an ounce of usable cannabis was less than $250 but at least $200; up to $60 per ounce, if the average retail price of an ounce of usable cannabis was less than $200 N.Y. (a, c) $0.005 per milligram of THC in flower $0.008 per milligram of THC in concentrates $0.03 per milligram of THC in edibles 9% excise tax (retail price) Ore. 17% excise tax (retail price) S.D. (a) 15% excise tax (retail price) Vt. (a) 14% excise tax (retail price) Wash. 37% excise tax (retail price) (a) As of March 2021, retail sale of recreational marijuana has not yet started. (b) Rates were determined as of February 22, 2021. (c) Rates were determined as of March 30, 2021. Note: District of Columbia voters approved legalization and purchase of marijuana in 2014 but federal law prohibits any action to implement it. In 2018, the New Hampshire legislature voted to legalize the possession and growing of marijuana, but sales are not permitted. Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Nebraska, North Carolina, South Carolina, Oklahoma, Rhode Island, and Tennessee impose a controlled substance tax on the purchase of illegal products. Several states impose local taxes as well as general sales taxes on marijuana products. Those are not included here. Sources: State statutes; Bloomberg Tax. The multitude of approaches makes any apples-to-apples comparison of rates difficult, but Washington state has the highest statewide retail-level excise tax An excise tax is a tax imposed on a specific good or activity. Excise taxes are commonly levied on cigarettes, alcoholic beverages, soda, gasoline, insurance premiums, amusement activities, and betting, and typically make up a relatively small and volatile portion of state and local and, to a lesser extent, federal tax collections. , at 37 percent. New York , the most recent addition, is the first state to implement a potency-based tax by milligrams of THC. As the table indicates, most states have applied a price-based ( ad valorem ) tax on retail sales of recreational marijuana. Levying the tax on retail sales allows for simplicity because there is a taxable event with a transaction, allowing for simple valuation. Although ad valorem taxation is simple, it is neither neutral nor equitable. In order to tax marijuana efficiently, the tax should be levied at a rate that corresponds to the societal costs, called externalities, associated with the product. These externalities share no association with the price. A profitable new industry to tax is understandably enticing to many lawmakers, but an excise tax on recreational marijuana should be based on the following principles: Tax rates should be low enough to allow legal markets to undercut, or at least gain price parity with, the illicit market; Taxes should be designed to offer stable revenue in the short term regardless of potential price declines; and Taxes should raise enough revenue to fund marijuana-related spending priorities and cover the societal cost related to consumption. A tax system following these principles would be based on weight or potency, have relatively low rates, and allocate revenue to offset societal costs associated with recreational marijuana consumption. Of the states that have passed legislation, all but Alaska, Colorado, Maine, Montana, and Oregon levy the general sales tax on marijuana sales in addition to excise taxes. Alaska, Montana, and Oregon do not levy a statewide general sales tax A sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. in the first place, and Maine and Colorado levy retail-level excise taxes in lieu of, and with higher rates, than their general rates. One of the great challenges with tax design for recreational marijuana is the amount of product types available on the market. Today, consumers can purchase THC-containing products in many different shapes and forms. Anything from traditional pre-rolled joints and brownies to THC-containing sparkling water and the yet unknown products to come. Any tax system should either be nimble enough or updated frequently enough to capture new products as they enter the market. There are still many unknowns when it comes to the taxation of recreational marijuana, but as more states open legal marketplaces and more research is done to understand the externalities of consumption, more data will be available. For more discussion on the trade-offs of marijuana tax structures and general excise tax design, see our recent report . Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe
Markdown	[Skip to content](https://taxfoundation.org/data/all/state/state-recreational-marijuana-taxes-2021/#main) - [US](https://taxfoundation.org/) - [Europe](https://taxfoundation.org/eu) - - [EN](https://taxfoundation.org/data/all/state/state-recreational-marijuana-taxes-2021/ "Switch to EN") [![Tax Foundation](https://taxfoundation.org/wp-content/themes/taxfoundation/assets/img/tf-logo.svg)](https://taxfoundation.org/ "Tax Foundation") - [Subscribe](https://taxfoundation.org/tax-newsletter/) - [Donate](https://taxfoundation.org/donate) - [Research](https://taxfoundation.org/research/) - - - [Research Areas](https://taxfoundation.org/research/) - [Federal Tax](https://taxfoundation.org/research/federal-tax/) - [State Tax](https://taxfoundation.org/research/state-tax/) - [Global Tax](https://taxfoundation.org/research/global-tax/) - [EU Tax](https://taxfoundation.org/research/global-tax/eu-tax/) - [All Research](https://taxfoundation.org/all-research-data/?post_types=all-research#results) - [Meet Our Experts](https://taxfoundation.org/about-us/staff-and-board/experts/) - - [Featured Projects](https://taxfoundation.org/all-research-data/?post_types=all-research#results) - [Tariff Tracker](https://taxfoundation.org/research/all/federal/trump-tariffs-trade-war/) - [FAQ: One Big Beautiful Bill Act](https://taxfoundation.org/research/all/federal/one-big-beautiful-bill-act-tax-changes/) - [2026 Tax Calculator](https://taxfoundation.org/data/all/federal/tax-calculator-obbba/) - [Growth and Opportunity Tax Plan](https://taxfoundation.org/research/all/federal/growth-opportunity-us-tax-reform-plan/) - [Federal Tax Modeling](https://taxfoundation.org/topics/economic-and-tax-modeling/) - [State Reforms for Mobility and Modernization](https://taxfoundation.org/research/all/state/remote-work-tax-reform-mobility-modernization/) - [State Tax Competitiveness Index](https://taxfoundation.org/research/all/state/2026-state-tax-competitiveness-index/) - [International Tax Competitiveness Index](https://taxfoundation.org/research/all/global/2025-international-tax-competitiveness-index/) - [European Tax Policy Scorecard](https://taxfoundation.org/eu/research/european-tax-policy-scorecard/) - - [Featured Issues](https://taxfoundation.org/all-research-data/?post_types=all-research#results) - [Tariffs & Trade](https://taxfoundation.org/topics/tariffs-and-trade/) - [One Big Beautiful Bill Act](https://taxfoundation.org/tags/one-big-beautiful-bill-act-obbb/) - [Property Taxes](https://taxfoundation.org/research/state-tax/property-tax-relief/) - [Global Tax Deal](https://taxfoundation.org/tags/global-tax-deal/) - [Debt & Deficits](https://taxfoundation.org/tags/debt-and-interest-rates) - [Cost Recovery](https://taxfoundation.org/topics/cost-recovery/) - [Taxes on Savers & Investors](https://taxfoundation.org/tags/taxing-savers-and-investors/) - [State Tax Trends](https://taxfoundation.org/tags/state-tax-trends/) - - #### Latest Research - [![Senator Chris Van Hollen tax cut plan Working Americans’ Tax Cut Act and Senator Cory Booker Tax Cut Plan Keep Your Pay Act](https://taxfoundation.org/wp-content/uploads/2026/03/Copy-of-Copy-of-Heading-1-300x240.png)](https://taxfoundation.org/research/all/federal/van-hollen-cory-booker-tax-cut-plans/) ### [Details and Analysis of the Van Hollen and Booker Tax Cut Plans](https://taxfoundation.org/research/all/federal/van-hollen-cory-booker-tax-cut-plans/) 9 min read - [Experts](https://taxfoundation.org/about-us/staff-and-board/experts/) - [Data](https://taxfoundation.org/data/) - - - [Data Areas](https://taxfoundation.org/all-research-data/?post_types=all-data#results) - [Federal Tax](https://taxfoundation.org/data/federal-tax/) - [State Tax](https://taxfoundation.org/data/state-tax/) - [Global Tax](https://taxfoundation.org/data/global-tax/) - [EU Tax](https://taxfoundation.org/data/global-tax/eu-tax/) - [All Data](https://taxfoundation.org/all-research-data/?post_types=all-data#results) - [Meet Our Experts](https://taxfoundation.org/about-us/staff-and-board/experts/) - - [Featured Projects](https://taxfoundation.org/all-research-data/?post_types=all-data#results) - [Facts & Figures: How Does Your State Compare?](https://taxfoundation.org/data/all/state/2026-state-tax-data/) - [Federal Income Tax Brackets](https://taxfoundation.org/data/all/federal/2026-tax-brackets/) - [2026 Tax Calculator](https://taxfoundation.org/data/all/federal/tax-calculator-obbba/) - [Who Pays Federal Income Taxes](https://taxfoundation.org/data/all/federal/latest-federal-income-tax-data-2025/) - [Federal Economic Data Dashboard](https://taxfoundation.org/data/federal-tax/tax-trade-data-dashboard/) - [State and Local Tax Burdens](https://taxfoundation.org/data/all/state/tax-burden-by-state-2022/) - [Corporate Tax Rates Around the World](https://taxfoundation.org/data/all/global/corporate-tax-rates-by-country-2025/) - [Sources of Government Revenue in the OECD](https://taxfoundation.org/data/all/global/oecd-tax-revenue-by-country/) - - [Featured Issues](https://taxfoundation.org/all-research-data/?post_types=all-data#results) - [State Data Explorer](https://taxfoundation.org/data/state-tax/) - [Country Data Explorer](https://taxfoundation.org/data/global-tax/) - [State Tax Maps](https://taxfoundation.org/datamaps/state-maps/) - [European Tax Maps](https://taxfoundation.org/datamaps/european-maps/) - - #### Latest Data - [![Marijuana Taxes by State, 2026](https://taxfoundation.org/wp-content/uploads/2025/04/does-your-state-tax-recreational-marijuana--292x300.png)](https://taxfoundation.org/data/all/state/recreational-marijuana-taxes/) ### [Recreational Marijuana Taxes by State, 2026](https://taxfoundation.org/data/all/state/recreational-marijuana-taxes/) 8 min read - [Blog & Commentary](https://taxfoundation.org/blog-commentary/) - - - [Tax Policy Blog](https://taxfoundation.org/blog) - [See All Testimony](https://taxfoundation.org/testimony/) - [See All Op-eds](https://taxfoundation.org/op-eds/) - [The Deduction Podcast](https://taxfoundation.org/podcast/) - [Meet Our Experts](https://taxfoundation.org/about-us/staff-and-board/experts/) - - #### Latest Blog Post - [![Maine Millionaire's Tax 2026](https://taxfoundation.org/wp-content/uploads/2026/04/AdobeStock_113592543-300x200.jpeg)](https://taxfoundation.org/blog/maine-millionaire-tax-harm-economy/) ### [Maine’s Proposed Millionaire’s Tax Would Harm the State’s Economy](https://taxfoundation.org/blog/maine-millionaire-tax-harm-economy/) 5 min read - - #### Latest Testimony - [![Nebraska property tax relief, assessment limits](https://taxfoundation.org/wp-content/uploads/2026/02/AdobeStock_308303103-300x169.jpeg)](https://taxfoundation.org/testimony/nebraska-property-tax-assessment-limits/) ### [Testimony: Assessment Limits and Property Taxes in Nebraska](https://taxfoundation.org/testimony/nebraska-property-tax-assessment-limits/) - - #### Latest Op-ed - [![Corporate Income Tax Payments, One Big Beautiful Bill Act (OBBBA)](https://taxfoundation.org/wp-content/uploads/2026/04/AdobeStock_704526626-300x200.jpeg)](https://taxfoundation.org/oped/corporate-tax-payments-obbba/) ### [Corporate Tax Payments Will Fall This Year. Here’s Why That’s Good News.](https://taxfoundation.org/oped/corporate-tax-payments-obbba/) - [Education](https://taxfoundation.org/taxedu/) - - - [Tax Terms Glossary](https://taxfoundation.org/taxedu/glossary/) - [Explainer Videos](https://taxfoundation.org/taxedu/videos/) - [The Short Form Blog](https://taxfoundation.org/tags/the-short-form/) - [Our Principles](https://taxfoundation.org/taxedu/principles/) - - [Primers](https://taxfoundation.org/taxedu/educational-resources/) - [Legislative Courses](https://taxfoundation.org/taxedu/legislative-courses/) - [Tax Foundation University](https://taxfoundation.org/taxedu/legislative-courses/tax-foundation-university/) - [State Tax Policy Boot Camp](https://taxfoundation.org/taxedu/legislative-courses/state-tax-policy-boot-camp/) - - [Featured Resources](https://taxfoundation.org/taxedu/educational-resources/) - [The Three Basic Tax Types](https://taxfoundation.org/taxedu/educational-resources/primer-the-three-basic-tax-types/) - [Not All Taxes Are Created Equal](https://taxfoundation.org/taxedu/educational-resources/primer-not-all-taxes-are-created-equal/) - [History of Taxes](https://taxfoundation.org/taxedu/educational-resources/primer-history-of-taxes/) - [10 Common Tax Myths, Debunked](https://taxfoundation.org/taxedu/educational-resources/primer-10-common-tax-myths-debunked/) - [A Carbon Tax, Explained](https://taxfoundation.org/taxedu/videos/carbon-tax-explained/) - [Common Tax Questions, Answered](https://taxfoundation.org/taxedu/educational-resources/primer-common-tax-questions-answered/) - - #### Featured Term - [![Capital gains realization rise when maximum tax rate on long-term gains falls capital gains tax definition](https://taxfoundation.org/wp-content/uploads/2019/04/FF649_2-300x228.png)](https://taxfoundation.org/taxedu/glossary/capital-gains-tax/) ### [Capital Gains Tax](https://taxfoundation.org/taxedu/glossary/capital-gains-tax/) - [Events](https://taxfoundation.org/events/) - [About Us](https://taxfoundation.org/about-us/) - - - [About Us](https://taxfoundation.org/about-us/) - [Our Principles](https://taxfoundation.org/taxedu/principles/) - [Contact Us](https://taxfoundation.org/about-us/contact/) - - [Staff](https://taxfoundation.org/about-us/staff-and-board/) - [Meet Our Team](https://taxfoundation.org/about-us/staff-and-board/) - [Meet Our Experts](https://taxfoundation.org/about-us/staff-and-board/experts/) - [Meet Our Board](https://taxfoundation.org/about-us/staff-and-board/board/) - - [Careers](https://taxfoundation.org/careers/) - [Job Openings](https://taxfoundation.org/about-us/careers/#openings) - [Internships](https://taxfoundation.org/about-us/careers/internship/) - - [Support Our Work](https://taxfoundation.org/donate/) - [Donate Today](https://taxfoundation.org/donate/) - [Ways to Give](https://taxfoundation.org/donate/ways-to-give/) - [Donor FAQ](https://taxfoundation.org/donate/donor-faq/) - [Planned Giving](https://taxfoundation.org/donate/1937-legacy-society/) [Home](https://taxfoundation.org/) • [Data](https://taxfoundation.org/data/) • Recreational Marijuana Taxes by State, 2021 # Recreational Marijuana Taxes by State, 2021 March 31, 2021 December 16, 2024 6 min readBy: [Ulrik Boesen](https://taxfoundation.org/about-us/staff/ulrik-boesen/) [See Latest Version](https://taxfoundation.org/data/all/state/recreational-marijuana-taxes/) The legalization and [tax](https://taxfoundation.org/tax-basics/tax/)ation of recreational marijuana remains one of the hottest trends in state taxation. Currently, 16 states ([Alaska](https://taxfoundation.org/location/alaska/), [Arizona](https://taxfoundation.org/location/arizona/), [California](https://taxfoundation.org/location/california/), [Colorado](https://taxfoundation.org/location/colorado/), [Illinois](https://taxfoundation.org/location/illinois/), Maine, [Massachusetts](https://taxfoundation.org/location/massachusetts/), [Michigan](https://taxfoundation.org/location/michigan/), [Montana](https://taxfoundation.org/location/montana/), [Nevada](https://taxfoundation.org/location/nevada/), [New Jersey](https://taxfoundation.org/location/new-jersey/), [New York](https://taxfoundation.org/location/new-york/), Oregon, [South Dakota](https://taxfoundation.org/location/south-dakota/), [Vermont](https://taxfoundation.org/location/vermont/), and [Washington](https://taxfoundation.org/location/washington/)) and [the District of Columbia](https://taxfoundation.org/location/the-district-of-columbia/) have passed bills or approved ballot measures that allow for the sale of recreational marijuana, and more states are poised to pass legislation this session. In total, actual recreational marijuana sales are happening in 11 states. The [Virginia](https://taxfoundation.org/location/virginia/) legislature now has passed a bill that would legalize sales starting in 2024; legislators are currently working with Gov. Ralph Northam (D) to amend and finalize legislation. [New Mexico](https://taxfoundation.org/location/new-mexico/) lawmakers are very likely to pass legislation during an ongoing special session. Voters in four states approved ballot measures in November, but only one state (Arizona) has established an operational marketplace. Vermont, which passed legalization back in 2018, has finally approved legislation, and the state plans to be operational starting in 2022. Recreational sales are delayed due to pending legal action in [South Dakota](https://www.foxnews.com/politics/legal-pot-rollouts-lag-amid-court-challenges-regulatory-confusion) and federal prohibition in the District of Columbia, although [change](https://www.fox5dc.com/news/bowser-rolls-out-dc-bill-clearing-way-for-legal-marijuana-sales) is on the horizon in DC. The unique legal framework under which marijuana use and sales operate—that of differing state and federal legality—means that every state market is essentially a siloed market. Marijuana products cannot cross state borders, so the entire process (seed to smoke, so to speak) must occur within state borders. This unusual situation, along with the novelty of legalization, has resulted in a wide variety of [tax](https://taxfoundation.org/taxedu/glossary/tax/) A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. designs. The following map highlights the states that have legal markets and levy taxes on recreational marijuana. [![State recreational marijuana taxes, state recreational marijuana tax rates, State excise taxes on recreational marijuana, New York recreational marijuana legalization 2021, state excise tax rates on recreational marijuana](https://taxfoundation.org/wp-content/uploads/2021/03/State-recreational-marijuana-taxes-state-recreational-marijuana-tax-rates-State-excise-taxes-on-recreational-marijuana-New-York-recreational-marijuana-legalization-2021-state-excise-tax-rates.png)](https://taxfoundation.org/wp-content/uploads/2021/03/State-recreational-marijuana-taxes-state-recreational-marijuana-tax-rates-State-excise-taxes-on-recreational-marijuana-New-York-recreational-marijuana-legalization-2021-state-excise-tax-rates.png) \| As of March 31, 2021 \| \| \|---\|---\| \| State \| Tax Rate \| \| Alaska \| \$50/oz. mature flowers; \$25/oz. immature flowers; \$15/oz. trim, \$1 per clone \| \| Ariz. \| 16% excise tax (retail price) \| \| Calif. \| 15% excise tax (levied on wholesale at average market rate); \$9.65/oz. flowers & \$2.87/oz. leaves cultivation tax; \$1.35/oz fresh cannabis plant \| \| Colo. \| 15% excise tax (levied on wholesale at average market rate); 15% excise tax (retail price) \| \| Ill. \| 7% excise tax of value at wholesale level; 10% tax on cannabis flower or products with less than 35% THC; 20% tax on products infused with cannabis, such as edible products; 25% tax on any product with a THC concentration higher than 35% \| \| Maine \| 10% excise tax (retail price), \$335/lb. flower; \$94/lb. trim; \$1.5 per immature plant or seedling; \$0.3 per seed \| \| Mass. \| 10\.75% excise tax (retail price) \| \| Mich. \| 10% excise tax (retail price) \| \| Mont. (a) \| 20% excise tax (retail price) \| \| Nev. \| 15% excise tax (fair market value at wholesale); 10% excise tax (retail price) \| \| N.J. (a, b) \| Up to \$10 per ounce, if the average retail price of an ounce of usable cannabis was \$350 or more; up to \$30 per ounce, if the average retail price of an ounce of usable cannabis was less than \$350 but at least \$250; up to \$40 per ounce, if the average retail price of an ounce of usable cannabis was less than \$250 but at least \$200; up to \$60 per ounce, if the average retail price of an ounce of usable cannabis was less than \$200 \| \| N.Y. (a, c) \| \$0.005 per milligram of THC in flower \$0.008 per milligram of THC in concentrates \$0.03 per milligram of THC in edibles 9% excise tax (retail price) \| \| Ore. \| 17% excise tax (retail price) \| \| S.D. (a) \| 15% excise tax (retail price) \| \| Vt. (a) \| 14% excise tax (retail price) \| \| Wash. \| 37% excise tax (retail price) \| \| (a) As of March 2021, retail sale of recreational marijuana has not yet started. (b) Rates were determined as of February 22, 2021. (c) Rates were determined as of March 30, 2021. Note: District of Columbia voters approved legalization and purchase of marijuana in 2014 but federal law prohibits any action to implement it. In 2018, the New Hampshire legislature voted to legalize the possession and growing of marijuana, but sales are not permitted. Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Nebraska, North Carolina, South Carolina, Oklahoma, Rhode Island, and Tennessee impose a controlled substance tax on the purchase of illegal products. Several states impose local taxes as well as general sales taxes on marijuana products. Those are not included here. Sources: State statutes; Bloomberg Tax. \| \| The multitude of approaches makes any apples-to-apples comparison of rates difficult, but Washington state has the highest statewide retail-level [excise tax](https://taxfoundation.org/taxedu/glossary/excise-tax/) An excise tax is a tax imposed on a specific good or activity. Excise taxes are commonly levied on cigarettes, alcoholic beverages, soda, gasoline, insurance premiums, amusement activities, and betting, and typically make up a relatively small and volatile portion of state and local and, to a lesser extent, federal tax collections. , at 37 percent. [New York](https://taxfoundation.org/new-york-marijuana-tax/), the most recent addition, is the first state to implement a potency-based tax by milligrams of THC. As the table indicates, most states have applied a price-based (ad valorem) tax on retail sales of recreational marijuana. Levying the tax on retail sales allows for simplicity because there is a taxable event with a transaction, allowing for simple valuation. Although ad valorem taxation is simple, it is neither neutral nor equitable. In order to tax marijuana efficiently, the tax should be levied at a rate that corresponds to the societal costs, called externalities, associated with the product. These externalities share no association with the price. A profitable new industry to tax is understandably enticing to many lawmakers, but an [excise tax](https://taxfoundation.org/tax-basics/excise-tax/) on recreational marijuana should be based on the following principles: - Tax rates should be low enough to allow legal markets to undercut, or at least gain price parity with, the illicit market; - Taxes should be designed to offer stable revenue in the short term regardless of potential price declines; and - Taxes should raise enough revenue to fund marijuana-related spending priorities and cover the societal cost related to consumption. A tax system following these principles would be based on weight or potency, have relatively low rates, and allocate revenue to offset societal costs associated with recreational marijuana consumption. Of the states that have passed legislation, all but Alaska, Colorado, Maine, Montana, and Oregon levy the general [sales tax](https://taxfoundation.org/tax-basics/sales-tax/) on marijuana sales in addition to excise taxes. Alaska, Montana, and Oregon do not levy a statewide general [sales tax](https://taxfoundation.org/taxedu/glossary/sales-tax/) A sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. in the first place, and Maine and Colorado levy retail-level excise taxes in lieu of, and with higher rates, than their general rates. One of the great challenges with tax design for recreational marijuana is the amount of product types available on the market. Today, consumers can purchase THC-containing products in many different shapes and forms. Anything from traditional pre-rolled joints and brownies to THC-containing sparkling water and the yet unknown products to come. Any tax system should either be nimble enough or updated frequently enough to capture new products as they enter the market. There are still many unknowns when it comes to the taxation of recreational marijuana, but as more states open legal marketplaces and more research is done to understand the externalities of consumption, more data will be available. For more discussion on the trade-offs of marijuana tax structures and general excise tax design, see our [recent report](https://taxfoundation.org/excise-taxes-excise-tax-trends/#Marijuana). ## Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. [Subscribe](https://taxfoundation.org/tax-newsletter) Share this article Twitter LinkedIn Facebook Email ## About the Author [![Ulrik Boesen](https://taxfoundation.org/wp-content/uploads/2019/09/Boesen-300x200.png)](https://taxfoundation.org/wp-content/uploads/2019/09/Boesen.png) ### [Ulrik Boesen](https://taxfoundation.org/about-us/staff/ulrik-boesen/) Director of Excise Tax Policy Ulrik is Director of Excise Tax Policy with the Center for State Tax Policy at the Tax Foundation. His focus is on excise taxation and supporting the team developing principled positions on various excise taxes ranging from gasoline to tobacco. ## All Related Articles - [Data](https://taxfoundation.org/all-research-data/?post_types=all-data#results) April 1, 2026 April 3, 2026 ### [Facts & Figures 2026: How Does Your State Compare?](https://taxfoundation.org/data/all/state/2026-state-tax-data/) Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more. 2 min read - Blog February 5, 2026 February 5, 2026 ### [The State Income Tax Divergence](https://taxfoundation.org/blog/state-income-tax-trends/) Lawmakers in many states continue to pursue additional income tax relief, while their counterparts elsewhere pursue the opposite goal. 3 min read - [Data](https://taxfoundation.org/all-research-data/?post_types=all-data#results) September 16, 2025 September 15, 2025 ### [Online Sports Betting Taxes by State, 2025](https://taxfoundation.org/data/all/state/online-sports-betting-taxes/) Legal sports betting has grown rapidly since the Supreme Court granted states the ability to establish online sports betting markets in Murphy vs. NCAA in 2018. 6 min read ## Topics - [Cannabis Taxes](https://taxfoundation.org/topics/cannabis-taxes/) - [Data](https://taxfoundation.org/topics/data/) - [Excise Taxes](https://taxfoundation.org/topics/excise-taxes/) - [Individual and Consumption Taxes](https://taxfoundation.org/topics/individual-and-consumption-taxes/) ## Locations - Locations: - [Alaska](https://taxfoundation.org/location/alaska/) - [Arizona](https://taxfoundation.org/location/arizona/) - [California](https://taxfoundation.org/location/california/) - [Colorado](https://taxfoundation.org/location/colorado/) - [Illinois](https://taxfoundation.org/location/illinois/) - [Maine](https://taxfoundation.org/location/maine/) - [Massachusetts](https://taxfoundation.org/location/massachusetts/) - [Michigan](https://taxfoundation.org/location/michigan/) - [Montana](https://taxfoundation.org/location/montana/) - [Nevada](https://taxfoundation.org/location/nevada/) - [New Jersey](https://taxfoundation.org/location/new-jersey/) - [New York](https://taxfoundation.org/location/new-york/) - [Oregon](https://taxfoundation.org/location/oregon/) - [South Dakota](https://taxfoundation.org/location/south-dakota/) - [Vermont](https://taxfoundation.org/location/vermont/) - [Washington](https://taxfoundation.org/location/washington/) ## Authors - [![Ulrik Boesen](https://taxfoundation.org/wp-content/uploads/2019/09/Boesen-300x200.png)](https://taxfoundation.org/wp-content/uploads/2019/09/Boesen.png) ### [Ulrik Boesen](https://taxfoundation.org/about-us/staff/ulrik-boesen/) Director of Excise Tax Policy [![Tax Foundation](https://taxfoundation.org/wp-content/themes/taxfoundation/assets/img/tf-logo.svg)](https://taxfoundation.org/ "Tax Foundation") Stay informed on the tax policies impacting you. [Subscribe](https://taxfoundation.org/tax-newsletter/) [About](https://taxfoundation.org/about-us/) Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy in the U.S. and internationally. For over 80 years, our mission has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity. [Donate](https://taxfoundation.org/donate/) As a nonprofit, we depend on the generosity of individuals like you. - [Careers](https://taxfoundation.org/about-us/careers/) - [Contact Us](https://taxfoundation.org/about-us/contact/) 1325 G St NW, Suite 950 Washington, DC 20005 - Copyright Tax Foundation 2026 - [Copyright Notice](https://taxfoundation.org/copyright-notice) - [Privacy Policy](https://taxfoundation.org/privacy-policy)
Readable Markdown	The legalization and [tax](https://taxfoundation.org/tax-basics/tax/)ation of recreational marijuana remains one of the hottest trends in state taxation. Currently, 16 states ([Alaska](https://taxfoundation.org/location/alaska/), [Arizona](https://taxfoundation.org/location/arizona/), [California](https://taxfoundation.org/location/california/), [Colorado](https://taxfoundation.org/location/colorado/), [Illinois](https://taxfoundation.org/location/illinois/), Maine, [Massachusetts](https://taxfoundation.org/location/massachusetts/), [Michigan](https://taxfoundation.org/location/michigan/), [Montana](https://taxfoundation.org/location/montana/), [Nevada](https://taxfoundation.org/location/nevada/), [New Jersey](https://taxfoundation.org/location/new-jersey/), [New York](https://taxfoundation.org/location/new-york/), Oregon, [South Dakota](https://taxfoundation.org/location/south-dakota/), [Vermont](https://taxfoundation.org/location/vermont/), and [Washington](https://taxfoundation.org/location/washington/)) and [the District of Columbia](https://taxfoundation.org/location/the-district-of-columbia/) have passed bills or approved ballot measures that allow for the sale of recreational marijuana, and more states are poised to pass legislation this session. In total, actual recreational marijuana sales are happening in 11 states. The [Virginia](https://taxfoundation.org/location/virginia/) legislature now has passed a bill that would legalize sales starting in 2024; legislators are currently working with Gov. Ralph Northam (D) to amend and finalize legislation. [New Mexico](https://taxfoundation.org/location/new-mexico/) lawmakers are very likely to pass legislation during an ongoing special session. Voters in four states approved ballot measures in November, but only one state (Arizona) has established an operational marketplace. Vermont, which passed legalization back in 2018, has finally approved legislation, and the state plans to be operational starting in 2022. Recreational sales are delayed due to pending legal action in [South Dakota](https://www.foxnews.com/politics/legal-pot-rollouts-lag-amid-court-challenges-regulatory-confusion) and federal prohibition in the District of Columbia, although [change](https://www.fox5dc.com/news/bowser-rolls-out-dc-bill-clearing-way-for-legal-marijuana-sales) is on the horizon in DC. The unique legal framework under which marijuana use and sales operate—that of differing state and federal legality—means that every state market is essentially a siloed market. Marijuana products cannot cross state borders, so the entire process (seed to smoke, so to speak) must occur within state borders. This unusual situation, along with the novelty of legalization, has resulted in a wide variety of [tax](https://taxfoundation.org/taxedu/glossary/tax/) A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. designs. The following map highlights the states that have legal markets and levy taxes on recreational marijuana. [![State recreational marijuana taxes, state recreational marijuana tax rates, State excise taxes on recreational marijuana, New York recreational marijuana legalization 2021, state excise tax rates on recreational marijuana](https://taxfoundation.org/wp-content/uploads/2021/03/State-recreational-marijuana-taxes-state-recreational-marijuana-tax-rates-State-excise-taxes-on-recreational-marijuana-New-York-recreational-marijuana-legalization-2021-state-excise-tax-rates.png)](https://taxfoundation.org/wp-content/uploads/2021/03/State-recreational-marijuana-taxes-state-recreational-marijuana-tax-rates-State-excise-taxes-on-recreational-marijuana-New-York-recreational-marijuana-legalization-2021-state-excise-tax-rates.png) \| As of March 31, 2021 \| \| \|---\|---\| \| State \| Tax Rate \| \| Alaska \| \$50/oz. mature flowers; \$25/oz. immature flowers; \$15/oz. trim, \$1 per clone \| \| Ariz. \| 16% excise tax (retail price) \| \| Calif. \| 15% excise tax (levied on wholesale at average market rate); \$9.65/oz. flowers & \$2.87/oz. leaves cultivation tax; \$1.35/oz fresh cannabis plant \| \| Colo. \| 15% excise tax (levied on wholesale at average market rate); 15% excise tax (retail price) \| \| Ill. \| 7% excise tax of value at wholesale level; 10% tax on cannabis flower or products with less than 35% THC; 20% tax on products infused with cannabis, such as edible products; 25% tax on any product with a THC concentration higher than 35% \| \| Maine \| 10% excise tax (retail price), \$335/lb. flower; \$94/lb. trim; \$1.5 per immature plant or seedling; \$0.3 per seed \| \| Mass. \| 10\.75% excise tax (retail price) \| \| Mich. \| 10% excise tax (retail price) \| \| Mont. (a) \| 20% excise tax (retail price) \| \| Nev. \| 15% excise tax (fair market value at wholesale); 10% excise tax (retail price) \| \| N.J. (a, b) \| Up to \$10 per ounce, if the average retail price of an ounce of usable cannabis was \$350 or more; up to \$30 per ounce, if the average retail price of an ounce of usable cannabis was less than \$350 but at least \$250; up to \$40 per ounce, if the average retail price of an ounce of usable cannabis was less than \$250 but at least \$200; up to \$60 per ounce, if the average retail price of an ounce of usable cannabis was less than \$200 \| \| N.Y. (a, c) \| \$0.005 per milligram of THC in flower \$0.008 per milligram of THC in concentrates \$0.03 per milligram of THC in edibles 9% excise tax (retail price) \| \| Ore. \| 17% excise tax (retail price) \| \| S.D. (a) \| 15% excise tax (retail price) \| \| Vt. (a) \| 14% excise tax (retail price) \| \| Wash. \| 37% excise tax (retail price) \| \| (a) As of March 2021, retail sale of recreational marijuana has not yet started. (b) Rates were determined as of February 22, 2021. (c) Rates were determined as of March 30, 2021. Note: District of Columbia voters approved legalization and purchase of marijuana in 2014 but federal law prohibits any action to implement it. In 2018, the New Hampshire legislature voted to legalize the possession and growing of marijuana, but sales are not permitted. Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Nebraska, North Carolina, South Carolina, Oklahoma, Rhode Island, and Tennessee impose a controlled substance tax on the purchase of illegal products. Several states impose local taxes as well as general sales taxes on marijuana products. Those are not included here. Sources: State statutes; Bloomberg Tax. \| \| The multitude of approaches makes any apples-to-apples comparison of rates difficult, but Washington state has the highest statewide retail-level [excise tax](https://taxfoundation.org/taxedu/glossary/excise-tax/) An excise tax is a tax imposed on a specific good or activity. Excise taxes are commonly levied on cigarettes, alcoholic beverages, soda, gasoline, insurance premiums, amusement activities, and betting, and typically make up a relatively small and volatile portion of state and local and, to a lesser extent, federal tax collections. , at 37 percent. [New York](https://taxfoundation.org/new-york-marijuana-tax/), the most recent addition, is the first state to implement a potency-based tax by milligrams of THC. As the table indicates, most states have applied a price-based (ad valorem) tax on retail sales of recreational marijuana. Levying the tax on retail sales allows for simplicity because there is a taxable event with a transaction, allowing for simple valuation. Although ad valorem taxation is simple, it is neither neutral nor equitable. In order to tax marijuana efficiently, the tax should be levied at a rate that corresponds to the societal costs, called externalities, associated with the product. These externalities share no association with the price. A profitable new industry to tax is understandably enticing to many lawmakers, but an [excise tax](https://taxfoundation.org/tax-basics/excise-tax/) on recreational marijuana should be based on the following principles: - Tax rates should be low enough to allow legal markets to undercut, or at least gain price parity with, the illicit market; - Taxes should be designed to offer stable revenue in the short term regardless of potential price declines; and - Taxes should raise enough revenue to fund marijuana-related spending priorities and cover the societal cost related to consumption. A tax system following these principles would be based on weight or potency, have relatively low rates, and allocate revenue to offset societal costs associated with recreational marijuana consumption. Of the states that have passed legislation, all but Alaska, Colorado, Maine, Montana, and Oregon levy the general [sales tax](https://taxfoundation.org/tax-basics/sales-tax/) on marijuana sales in addition to excise taxes. Alaska, Montana, and Oregon do not levy a statewide general [sales tax](https://taxfoundation.org/taxedu/glossary/sales-tax/) A sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. in the first place, and Maine and Colorado levy retail-level excise taxes in lieu of, and with higher rates, than their general rates. One of the great challenges with tax design for recreational marijuana is the amount of product types available on the market. Today, consumers can purchase THC-containing products in many different shapes and forms. Anything from traditional pre-rolled joints and brownies to THC-containing sparkling water and the yet unknown products to come. Any tax system should either be nimble enough or updated frequently enough to capture new products as they enter the market. There are still many unknowns when it comes to the taxation of recreational marijuana, but as more states open legal marketplaces and more research is done to understand the externalities of consumption, more data will be available. For more discussion on the trade-offs of marijuana tax structures and general excise tax design, see our [recent report](https://taxfoundation.org/excise-taxes-excise-tax-trends/#Marijuana). ## Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. [Subscribe](https://taxfoundation.org/tax-newsletter)
Shard	25 (laksa)
Root Hash	7603385904904516025
Unparsed URL	org,taxfoundation!/data/all/state/state-recreational-marijuana-taxes-2021/ s443