Cannabis Tax Rates in Rhode Island

Rhode Island (RI)Recreational & Medical

This state has legalized both recreational and medical cannabis.

Tax Rate Breakdown

State Excise Tax
10%
on cannabis sales
State Sales Tax
7%
additional
Max Effective Rate
20%
combined max rate
Local Taxes AllowedYes
Medical Tax Rate0% (exempt)
Annual Revenue (2024)$15M
Tax Structure10% state excise tax plus 7% state sales tax plus 3% local tax.

Overview

Rhode Island levies a 10% state excise tax on recreational cannabis, plus the 7% state sales tax, and municipalities may add up to 3% in local taxes for a maximum combined rate of 20%. Medical cannabis patients are fully exempt from all cannabis taxes. Recreational sales launched in December 2022, and the market is still maturing. Revenue is distributed to the general fund, host community support, and social equity programs.

Key Facts

Frequently Asked Questions

What is Rhode Island's cannabis tax rate?+
Up to 20%: 10% excise + 7% sales + 3% local. Most areas see about 17% (without local tax).
When did Rhode Island start recreational cannabis sales?+
Rhode Island launched recreational cannabis sales in December 2022, making it one of the newest recreational markets in the US.
Is medical cannabis taxed in Rhode Island?+
No. Registered medical patients are fully exempt from all cannabis taxes in Rhode Island.

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