Cannabis Tax Rates in Arkansas
This state has legalized cannabis for medical use only.
Tax Rate Breakdown
Overview
Arkansas imposes one of the highest tax rates on medical cannabis in the country. A 6.5% special privilege tax is levied on medical cannabis sales, in addition to the standard 6.5% state sales tax and applicable local sales taxes, bringing the total to approximately 15-17%. A recreational legalization ballot measure failed in 2022. Revenue from the privilege tax goes to local jurisdictions, the University of Arkansas for Medical Sciences, the state Drug Director, and skills development.
Key Facts
- •6.5% special privilege tax on medical cannabis
- •6.5% state sales tax also applies
- •Local sales taxes add additional burden
- •Total rate of approximately 15-17% — high for medical cannabis
- •Recreational legalization ballot measure failed in 2022
Frequently Asked Questions
What is the tax on medical cannabis in Arkansas?+
Will Arkansas legalize recreational cannabis?+
Where does Arkansas medical cannabis tax revenue go?+
Compare Tax Rates in Related States
See how Arkansas's cannabis tax rates compare to neighboring or similar states.
Continue Exploring
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. Arkansas 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 Arkansas state tax authorities and consult with a qualified tax professional. Cannabismarketcap does not guarantee the accuracy or completeness of any information presented.