Cannabis Tax Rates in New Jersey
This state has legalized both recreational and medical cannabis.
Tax Rate Breakdown
Overview
New Jersey takes a relatively light approach to cannabis taxation. Recreational cannabis is subject to the standard 6.625% state sales tax and municipalities may impose a local tax of up to 2%. Instead of a traditional excise tax, New Jersey uses a social equity excise fee charged per ounce on transfers from cultivators ($1.10-$1.52/oz depending on market maturity). Medical cannabis patients are exempt from all taxes. This lower tax burden was designed to help the legal market compete with the illicit market.
Key Facts
- •6.625% state sales tax on recreational cannabis
- •Local municipalities may add up to 2% local tax
- •Social equity excise fee of $1.10-$1.52 per ounce on transfers
- •No traditional excise tax — one of the lowest-taxed rec states
- •Medical cannabis is fully tax exempt
Frequently Asked Questions
What is the cannabis tax rate in New Jersey?+
Why are New Jersey cannabis taxes so low?+
Is medical cannabis taxed in New Jersey?+
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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. New Jersey 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 New Jersey state tax authorities and consult with a qualified tax professional. Cannabismarketcap does not guarantee the accuracy or completeness of any information presented.