Cannabis Tax Rates in Illinois

Q: How does Illinois calculate cannabis tax?

Illinois uses a tiered system based on THC content: 7% for flower under 35% THC, 20% for infused products, and 25% for products over 35% THC. State sales tax (6.25%) and local taxes are added on top.

Q: What is the maximum cannabis tax rate in Illinois?

For high-potency concentrates in Cook County, the effective rate can reach approximately 41% (25% excise + 6.25% state sales + 3.75% local + Cook County taxes).

Q: Is medical cannabis cheaper tax-wise in Illinois?

Yes. Medical cannabis patients pay only a 1% state privilege tax, making it significantly cheaper than recreational purchases which can be taxed at 30-41%.

Illinois (IL)Recreational & Medical

This state has legalized both recreational and medical cannabis.

View full Illinois cannabis market profile →

Tax Rate Breakdown

State Excise Tax

7-25% (THC-based)

on cannabis sales

State Sales Tax

6.25%

additional

Max Effective Rate

~41%

combined max rate

Local Taxes AllowedYes

Medical Tax Rate1% state tax

Annual Revenue (2024)$500M

Tax StructureTHC-tiered excise tax (7% flower <35% THC, 20% infused, 25% high-potency) plus state and local sales taxes.

Overview

Illinois uses a unique THC-potency-based tax structure for recreational cannabis. Flower with less than 35% THC is taxed at 7%, cannabis-infused products (edibles, tinctures) at 20%, and products exceeding 35% THC (concentrates) at 25%. The state's 6.25% sales tax applies on top, and municipalities may add a local tax up to 3% (3.75% in Cook County). This tiered approach means consumers pay dramatically different rates depending on product type, with concentrates facing the highest burden.

Key Facts

•7% excise on cannabis flower with less than 35% THC
•20% excise on cannabis-infused products (edibles, tinctures)
•25% excise on products exceeding 35% THC (concentrates)
•6.25% state sales tax plus local taxes up to 3.75%
•Medical cannabis taxed at just 1% state privilege tax

Frequently Asked Questions

How does Illinois calculate cannabis tax?+

Illinois uses a tiered system based on THC content: 7% for flower under 35% THC, 20% for infused products, and 25% for products over 35% THC. State sales tax (6.25%) and local taxes are added on top.

What is the maximum cannabis tax rate in Illinois?+

For high-potency concentrates in Cook County, the effective rate can reach approximately 41% (25% excise + 6.25% state sales + 3.75% local + Cook County taxes).

Is medical cannabis cheaper tax-wise in Illinois?+

Yes. Medical cannabis patients pay only a 1% state privilege tax, making it significantly cheaper than recreational purchases which can be taxed at 30-41%.

Compare Tax Rates in Related States

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

Continue Exploring

Illinois Cannabis Market

Cannabis prices by state

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