Cannabis Accounting in All 27 States

24 States

Adult-Use Cannabis States

Most adult-use states have decoupled from federal 280E at the state level — dual-method accounting required where noted. Tax rates, regulatory bodies, and compliance requirements vary significantly by state.

AK Adult-Use

Alaska

Weight-based cultivation tax: $50/oz mature bud, $25/oz immature, $15/oz trim. No state sales tax.

View accounting details State decoupled

AZ Adult-Use

Arizona

16% adult-use excise tax. State follows federal 280E — COGS-only treatment applies at both federal and AZ state levels.

View accounting details 280E applies

CA Adult-Use

California

15% excise tax + local cannabis tax varies. State decoupled from 280E since Jan 1, 2023 (AB 195) — dual-method accounting required.

View accounting details State decoupled

CO Adult-Use

Colorado

15% retail excise + 15% special sales tax + 2.9% state + local (Denver: 5.5%). First legal-sales state (2014).

View accounting details State decoupled

CT Adult-Use

Connecticut

3% cannabis excise + 6.35% state sales tax + up to 3% local. Social equity licensing framework.

View accounting details State decoupled

DE Adult-Use

Delaware

15% excise tax. No state sales tax on cannabis. New adult-use market launched 2024 — clean books from day one matter most.

View accounting details State decoupled

IL Adult-Use

Illinois

Tiered excise: 10% (<35% THC) / 20% (>35% THC) / 25% (infused products) + 6.25% state sales tax.

View accounting details State decoupled

ME Adult-Use

Maine

10% cannabis excise tax + 5.5% state sales tax. Medical program active since 1999 — dual-program operators tracked separately.

View accounting details State decoupled

MD Adult-Use

Maryland

9% cannabis excise + 6% state sales tax = 15% combined. Medical-to-adult-use conversion July 2023.

View accounting details State decoupled

MA Adult-Use

Massachusetts

10.75% excise + 6.25% state + up to 3% local = up to 20% combined. CCC compliance required.

View accounting details State decoupled

MI Adult-Use

Michigan

10% excise + 6% state sales tax. Highly licensed market with significant price compression — financial precision is competitive.

View accounting details State decoupled

MN Adult-Use

Minnesota

10% cannabis excise + 6.875% state sales tax. Adult-use market launched 2025 under the Office of Cannabis Management.

View accounting details State decoupled

MO Adult-Use

Missouri

6% cannabis excise + 4.225% state sales tax. Medical-to-adult-use conversion (Amendment 3, February 2023).

View accounting details State decoupled

MT Adult-Use

Montana

20% cannabis tax. No state sales tax. State-level 280E decoupled since January 2024 (HB 788) — dual-method accounting required.

View accounting details State decoupled

NV Adult-Use

Nevada

15% wholesale excise + 10% retail excise + 6.85% state sales tax. High-volume Las Vegas tourism market.

View accounting details State decoupled

NJ Adult-Use

New Jersey

6.625% sales tax + Social Equity Excise Fee (per-oz) + up to 2% municipal transfer fee. State-level 280E decoupled since January 1, 2023 — dual-method accounting required. 420Ledger home state.

View accounting details State decoupled

NM Adult-Use

New Mexico

Graduated cannabis excise: 12% to 18% (increases 1%/yr). Gross Receipts Tax (GRT) instead of standard sales tax — a business-side obligation.

View accounting details State decoupled

NY Adult-Use

New York

Per-milligram THC potency tax at distribution + 9% state + 4% county/NYC retail. Most complex cannabis tax structure in the US.

View accounting details State decoupled

OH Adult-Use

Ohio

10% cannabis excise + 5.75% state sales tax. Adult-use launched August 2024 (Issue 2) — converted medical operators need updated books.

View accounting details State decoupled

OR Adult-Use

Oregon

17% cannabis excise + up to 3% local. No state sales tax. One of the oldest adult-use markets (2015) — significant price compression.

View accounting details State decoupled

RI Adult-Use

Rhode Island

10% cannabis excise tax + 7% state sales tax = 17% combined. Compact, tightly regulated New England market.

View accounting details State decoupled

VT Adult-Use

Vermont

14% cannabis excise + 6% state sales tax = 20% combined — one of the highest rates in New England. Small market, demanding margins.

View accounting details State decoupled

VA Adult-Use

Virginia

21% retail excise + 4.3% state + 1% local ≈ 26% combined — one of the highest combined rates in the country.

View accounting details State decoupled

WA Adult-Use

Washington

37% excise tax — the highest cannabis excise rate in the US — + 6.5%+ state and local sales tax. LEAF Data Systems (not METRC).

View accounting details 280E applies

3 States

Medical Cannabis Only States

These three states operate medical-only programs. Pennsylvania has decoupled from 280E at the state level. Oklahoma and West Virginia follow federal 280E — medical status does not exempt cannabis businesses from the federal deduction disallowance.

OK Medical Only

Oklahoma

7% medical cannabis excise + 4.5% state sales tax. Most cannabis licenses per capita in the US — extreme market saturation and price compression.

View accounting details 280E applies

PA Medical Only

Pennsylvania

5% gross receipts tax on growers and processors. No retail sales tax on medical cannabis. State decoupled from 280E — dual-method accounting required.

View accounting details State decoupled

WV Medical Only

West Virginia

10% medical cannabis excise tax. No retail sales tax on medical cannabis. Smaller program with specific WV Office of Medical Cannabis reporting requirements.

View accounting details 280E applies

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