Cannabis Tax Rates in Pennsylvania

Pennsylvania (PA)Medical Only

This state has legalized cannabis for medical use only.

Tax Rate Breakdown

State Excise Tax
5% gross receipts tax
on cannabis sales
State Sales Tax
Exempt
additional
Max Effective Rate
5% (wholesale level)
combined max rate
Local Taxes AllowedNo
Medical Tax Rate0% for patients (tax on growers)
Annual Revenue (2024)$100M
Tax Structure5% gross receipts tax levied on grower/processors. Medical cannabis exempt from sales tax at retail.

Overview

Pennsylvania's medical cannabis program imposes a 5% gross receipts tax on grower/processor operations, which is built into wholesale pricing. Patients do not pay sales tax at dispensaries — medical cannabis is exempt from the state's 6% sales tax. The program has grown to serve over 400,000 active patients. There is significant legislative discussion about adult-use legalization, which would introduce additional excise and sales taxes. Revenue currently comes from the gross receipts tax and licensing fees.

Key Facts

Frequently Asked Questions

Do medical cannabis patients pay tax in Pennsylvania?+
Patients do not pay sales tax at the dispensary. A 5% gross receipts tax is levied on grower/processors, which may be reflected in product pricing.
Will Pennsylvania legalize recreational cannabis?+
Recreational legalization is under active legislative consideration. The governor has expressed support, but the legislature has not yet passed a bill.
How large is Pennsylvania's medical cannabis market?+
Pennsylvania has over 400,000 active patients, making it one of the largest medical cannabis programs in the country.

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