Cannabis Tax Rates in North Dakota

North Dakota (ND)Medical Only

This state has legalized cannabis for medical use only.

Tax Rate Breakdown

State Excise Tax
None
on cannabis sales
State Sales Tax
5% + local
additional
Max Effective Rate
~7-8%
combined max rate
Local Taxes AllowedYes
Medical Tax RateStandard sales tax
Annual Revenue (2024)$10M
Tax StructureMedical cannabis subject to standard state and local sales taxes. No excise tax.

Overview

North Dakota's medical cannabis program imposes no cannabis-specific excise tax. Medical cannabis is subject to the standard 5% state sales tax and applicable local taxes. The program has a limited number of dispensaries and serves patients with qualifying conditions. Recreational legalization ballot measures have failed in both 2018 and 2022, so the state remains medical-only. Revenue comes from standard sales taxes and licensing fees.

Key Facts

Frequently Asked Questions

What is the tax on medical cannabis in North Dakota?+
Medical cannabis is subject to the standard 5% state sales tax plus applicable local taxes. There is no cannabis-specific excise tax.
Has North Dakota tried to legalize recreational cannabis?+
Yes. Recreational legalization ballot measures failed in both 2018 and 2022. Future attempts are possible but face opposition.
How many dispensaries does North Dakota have?+
North Dakota has a limited number of licensed dispensaries, with locations spread across the state's major population centers.

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