Cannabis Tax Rates in New York

New York (NY)Recreational & Medical

This state has legalized both recreational and medical cannabis.

View full New York cannabis market profile →

Tax Rate Breakdown

State Excise Tax
9% (THC-based per mg)
on cannabis sales
State Sales Tax
4% state + local
additional
Max Effective Rate
~25%+
combined max rate
Local Taxes AllowedYes
Medical Tax Rate0% (exempt)
Tax StructureTHC-based excise (per mg of THC) plus 9% state cannabis tax plus 4% state sales tax plus 4% local tax.

Overview

New York uses a unique potency-based excise tax system. Cannabis flower is taxed at $0.005 per milligram of THC, concentrates at $0.008/mg THC, and edibles at $0.03/mg THC. In addition, a 9% state cannabis tax and a 4% local government tax apply, plus the 4% state sales tax. Medical cannabis is exempt from all cannabis-specific taxes. The state's legal recreational market launched in late 2022 with revenue still ramping up as licensing expands. Revenue is earmarked for education, community reinvestment, and drug treatment.

Key Facts

Frequently Asked Questions

How does New York's potency-based cannabis tax work?+
Instead of a flat excise rate, New York taxes cannabis based on THC content: $0.005/mg for flower, $0.008/mg for concentrates, and $0.03/mg for edibles. This is in addition to the 9% state tax and 4% local tax.
What is the total cannabis tax rate in New York?+
The total rate varies by product and THC content. For a typical $50 eighth of flower, the effective rate is approximately 20-25% when combining the potency-based excise, 9% state tax, 4% local tax, and 4% sales tax.
Is medical cannabis taxed in New York?+
No. Medical cannabis patients are exempt from the potency-based excise tax, the 9% state cannabis tax, and the 4% local tax.

Compare Tax Rates in Related States

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

NJ
New Jersey
~10-12%
max rate
CT
Connecticut
~20%
max rate
MA
Massachusetts
20%
max rate
PA
Pennsylvania
5% (wholesale level)
max rate

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