Cannabis Tax Rates in Ohio

Ohio (OH)Recreational & Medical

This state has legalized both recreational and medical cannabis.

Tax Rate Breakdown

State Excise Tax
10%
on cannabis sales
State Sales Tax
5.75% + local
additional
Max Effective Rate
~18%
combined max rate
Local Taxes AllowedYes
Medical Tax Rate5.75% sales tax only
Tax Structure10% state excise tax plus 5.75% state sales tax and local sales taxes.

Overview

Ohio voters approved Issue 2 in November 2023, legalizing recreational cannabis. The state imposes a 10% excise tax on recreational cannabis sales plus the standard 5.75% state sales tax and applicable local taxes, for a total effective rate of approximately 16-18%. Medical cannabis patients pay only the standard sales taxes. Revenue funds social equity and job programs, host community support, substance abuse treatment, and the general fund. Recreational sales launched in mid-2024.

Key Facts

Frequently Asked Questions

What is Ohio's cannabis tax rate?+
Recreational cannabis faces a 10% excise tax plus 5.75% state sales tax plus local taxes, for a total of approximately 16-18%.
When did Ohio legalize recreational cannabis?+
Ohio voters approved Issue 2 in November 2023. Recreational sales began in mid-2024.
Is medical cannabis taxed differently in Ohio?+
Yes. Medical patients are exempt from the 10% excise tax and pay only the standard state and local sales taxes.

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

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