Cannabis Tax Rates in Montana

Montana (MT)Recreational & Medical

This state has legalized both recreational and medical cannabis.

Tax Rate Breakdown

State Excise Tax
20%
on cannabis sales
State Sales Tax
None (no state sales tax)
additional
Max Effective Rate
23%
combined max rate
Local Taxes AllowedYes
Medical Tax Rate4% (medical only)
Annual Revenue (2024)$50M
Tax Structure20% state excise tax. Local option tax up to 3%. No state sales tax.

Overview

Montana charges a 20% state excise tax on recreational cannabis. As a state without a general sales tax, this excise is the primary tax on cannabis. Local governments may add up to 3% in additional taxes. Medical cannabis is taxed at a reduced rate of 4%. Revenue is distributed to the general fund, conservation accounts, substance abuse treatment, veterans services, and local governments hosting cannabis businesses.

Key Facts

Frequently Asked Questions

What is Montana's cannabis tax rate?+
Recreational cannabis is taxed at 20% excise plus up to 3% local, for a maximum of 23%. Medical is taxed at 4%.
Does Montana have a sales tax on cannabis?+
Montana has no state sales tax. Cannabis is subject only to the excise tax and any applicable local tax.
How is Montana cannabis tax revenue used?+
Revenue is split among the general fund, conservation accounts, substance abuse programs, veterans services, and host community funding.

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