Cannabis Tax Rates in Utah

Utah (UT)Medical Only

This state has legalized cannabis for medical use only.

Tax Rate Breakdown

State Excise Tax
None
on cannabis sales
State Sales Tax
4.85% state + local
additional
Max Effective Rate
~7-9%
combined max rate
Local Taxes AllowedYes
Medical Tax RateStandard sales tax only
Annual Revenue (2024)$30M
Tax StructureMedical cannabis subject to standard state and local sales taxes. No cannabis-specific excise.

Overview

Utah's medical cannabis program, established by Proposition 2 in 2018 and modified by the legislature, takes a conservative approach. Medical cannabis is subject to standard state sales tax (4.85%) and applicable local taxes but has no cannabis-specific excise tax. The market is tightly regulated with a limited number of state-run pharmacies and licensed private dispensaries. Only specific medical conditions qualify, and the product selection is restricted. Revenue comes from standard sales taxes and licensing fees.

Key Facts

Frequently Asked Questions

Is medical cannabis taxed in Utah?+
Medical cannabis is subject to standard state (4.85%) and local sales taxes. There is no cannabis-specific excise tax.
How many dispensaries does Utah have?+
Utah has a limited number of licensed pharmacies (dispensaries), with the state maintaining tight control over the number of operating locations.
What conditions qualify for medical cannabis in Utah?+
Qualifying conditions include chronic pain, PTSD, epilepsy, cancer, HIV/AIDS, Crohn's disease, and several other specified medical conditions.

Compare Tax Rates in Related States

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