Cannabis Tax Rates in Maryland

Maryland (MD)Recreational & Medical

This state has legalized both recreational and medical cannabis.

Tax Rate Breakdown

State Excise Tax
9%
on cannabis sales
State Sales Tax
6%
additional
Max Effective Rate
15%
combined max rate
Local Taxes AllowedNo
Medical Tax Rate0% (exempt)
Annual Revenue (2024)$75M
Tax Structure9% state excise tax plus 6% state sales tax. No local cannabis taxes.

Overview

Maryland launched recreational cannabis sales on July 1, 2023. The state imposes a 9% excise tax plus the 6% state sales tax for a total of 15%. Local governments are not permitted to levy additional cannabis taxes. Medical cannabis patients are exempt from both the excise and sales taxes. Revenue is directed to the Community Reinvestment and Repair Fund, small and minority business support, and the general fund. The relatively low combined rate was designed to transition medical patients and illicit market consumers to the legal market.

Key Facts

Frequently Asked Questions

What is Maryland's cannabis tax rate?+
15% total: 9% excise plus 6% sales tax. No local taxes are permitted.
Is medical cannabis taxed in Maryland?+
No. Medical cannabis patients are exempt from both the excise and sales taxes.
When did Maryland legalize recreational cannabis?+
Maryland voters approved legalization in November 2022, and retail sales began on July 1, 2023.

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