Cannabis Tax Rates in Oregon

Oregon (OR)Recreational & Medical

This state has legalized both recreational and medical cannabis.

Tax Rate Breakdown

State Excise Tax
17%
on cannabis sales
State Sales Tax
None (no state sales tax)
additional
Max Effective Rate
20%
combined max rate
Local Taxes AllowedYes
Medical Tax Rate0% (exempt)
Annual Revenue (2024)$200M
Tax Structure17% state excise tax. Local governments may impose up to 3% additional tax. Oregon has no general sales tax.

Overview

Oregon benefits from being one of only five states without a general sales tax, so cannabis consumers pay only the cannabis-specific excise tax. The state imposes a 17% excise tax on recreational cannabis sales, and local jurisdictions may opt to add up to 3% in local taxes, bringing the maximum rate to 20%. Medical cannabis cardholders are fully exempt from all cannabis taxes. Oregon's relatively lower tax rates, combined with its mature cultivation market, have contributed to some of the lowest retail cannabis prices in the nation.

Key Facts

Frequently Asked Questions

What is the cannabis tax rate in Oregon?+
Oregon charges a 17% state excise tax on recreational cannabis. Local governments may add up to 3% more, for a maximum of 20%. Oregon has no general sales tax.
Why is cannabis so cheap in Oregon?+
Oregon's relatively low tax rate (17-20%), no sales tax, favorable growing conditions, and an oversupply of licensed cultivators have driven retail prices to among the lowest in the nation.
Is medical cannabis taxed in Oregon?+
No. Medical cannabis cardholders are fully exempt from all state and local cannabis taxes in Oregon.

Compare Tax Rates in Related States

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