Cannabis Tax Rates in Massachusetts

Massachusetts (MA)Recreational & Medical

This state has legalized both recreational and medical cannabis.

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Tax Rate Breakdown

State Excise Tax

10.75%

on cannabis sales

State Sales Tax

6.25%

additional

Max Effective Rate

20%

combined max rate

Local Taxes AllowedYes

Medical Tax Rate0% (exempt)

Annual Revenue (2024)$200M

Tax Structure10.75% state excise tax plus 6.25% state sales tax plus up to 3% local option tax.

Overview

Massachusetts applies a three-layer tax to recreational cannabis: a 10.75% state excise tax, the standard 6.25% state sales tax, and an optional local community impact fee of up to 3%, for a maximum effective rate of 20%. Medical cannabis patients are exempt from all three taxes. Revenue is allocated to public and behavioral health, public safety, municipal equity, and the state's general fund. The Cannabis Control Commission oversees licensing and enforcement.

Key Facts

•10.75% state excise tax on recreational cannabis
•6.25% state sales tax applies on top of excise
•Local option tax of up to 3% allowed
•Maximum combined rate of 20% — moderate for an East Coast market
•Medical cannabis fully exempt from all cannabis taxes

Frequently Asked Questions

What is the cannabis tax rate in Massachusetts?+

Recreational cannabis faces up to 20%: 10.75% excise + 6.25% sales + up to 3% local option tax. Medical cannabis is tax-exempt.

Is Massachusetts cannabis tax high compared to other states?+

At a maximum of 20%, Massachusetts has a moderate rate. It's lower than California (~40%+), Washington (37%), and Illinois (~41%), but higher than Michigan (16%) or Alaska (effectively ~13%).

Are medical cannabis patients taxed in Massachusetts?+

No. Medical cannabis patients are exempt from the excise tax, sales tax, and local option tax.

Compare Tax Rates in Related States

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

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Massachusetts Cannabis Market

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