Cannabis Tax Rates in Colorado

Colorado (CO)Recreational & Medical

This state has legalized both recreational and medical cannabis.

Tax Rate Breakdown

State Excise Tax
15%
on cannabis sales
State Sales Tax
15% special sales tax
additional
Max Effective Rate
~36%
combined max rate
Local Taxes AllowedYes
Medical Tax Rate2.9% state sales tax only
Annual Revenue (2024)$400M
Tax Structure15% excise tax on wholesale plus 15% special retail sales tax, plus state and local sales taxes.

Overview

Colorado, the first state to launch recreational sales in 2014, uses a multi-layered tax structure. A 15% excise tax is applied at the wholesale level (when cultivators sell to retailers), and a 15% special retail sales tax is charged at the point of sale. The standard 2.9% state sales tax also applies, along with any applicable local sales and special marijuana taxes. Medical cannabis purchases are subject only to the 2.9% state sales tax. Revenue is allocated to education, public health, and local governments.

Key Facts

Frequently Asked Questions

What is the total cannabis tax in Colorado?+
Recreational cannabis purchases face a 15% excise tax, 15% special sales tax, 2.9% state sales tax, and variable local taxes, for a combined rate of approximately 30-36% depending on locality.
How is Colorado cannabis tax revenue spent?+
Revenue funds school construction (BEST program), public health, substance abuse prevention, law enforcement training, and local government programs.
Is medical cannabis taxed in Colorado?+
Medical cannabis is subject only to the 2.9% state sales tax and applicable local sales taxes. It is exempt from the 15% excise and 15% special sales taxes.

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See how Colorado's cannabis tax rates compare to neighboring or similar states.

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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. Colorado 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 Colorado state tax authorities and consult with a qualified tax professional. Cannabismarketcap does not guarantee the accuracy or completeness of any information presented.