Cannabis Tax Rates in Texas
This state has legalized cannabis for medical use only.
Tax Rate Breakdown
Overview
Texas has an extremely restrictive medical cannabis program known as the Compassionate Use Program (CUP). Products are limited to low-THC cannabis (originally 0.5%, expanded to 1% THC). Medical cannabis is exempt from state sales tax, and there is no excise tax. The program serves a relatively small number of patients with specific qualifying conditions. Only a handful of licensed dispensing organizations operate statewide. The limited scope of the program means minimal tax revenue.
Key Facts
- •No excise tax and exempt from sales tax
- •Limited to low-THC cannabis (1% THC cap)
- •Very restrictive qualifying conditions
- •Only a handful of licensed dispensing organizations
- •Among the most restrictive medical programs in the nation
Frequently Asked Questions
Is medical cannabis taxed in Texas?+
What is the THC limit in Texas?+
What conditions qualify for the Compassionate Use Program?+
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See how Texas'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. Texas 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 Texas state tax authorities and consult with a qualified tax professional. Cannabismarketcap does not guarantee the accuracy or completeness of any information presented.