Cannabis Tax Rates in Arizona
This state has legalized both recreational and medical cannabis.
Tax Rate Breakdown
Overview
Arizona levies a 16% excise tax on recreational cannabis sales, on top of the state's 5.6% transaction privilege tax (sales tax) and any applicable city and county taxes. The combined rate typically lands around 22-24% depending on the locality. Medical cannabis patients pay only the standard sales taxes and are exempt from the 16% excise tax. Revenue from the excise tax funds community colleges, public safety, infrastructure, and a public health fund.
Key Facts
- •16% state excise tax on recreational cannabis
- •5.6% state transaction privilege tax (sales tax) applies
- •Local city/county taxes bring total to ~22-24%
- •Medical cannabis exempt from excise — pays sales tax only
- •Revenue funds community colleges (33%), public safety (31%), and highways (25%)
Frequently Asked Questions
What is the cannabis tax rate in Arizona?+
How is Arizona cannabis tax revenue distributed?+
Do medical patients pay cannabis excise tax in Arizona?+
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Disclaimer: The information on this page is provided for educational and informational purposes only and does not constitute tax or legal advice. Cannabis remains illegal under US federal law. Arizona tax rates and regulations are subject to change and may vary by local jurisdiction. Tax rates, revenue figures, and program details described here are based on publicly available information and may not reflect the most current regulations. Always verify current tax rates with official Arizona state tax authorities and consult with a qualified tax professional. Cannabismarketcap does not guarantee the accuracy or completeness of any information presented.