Cannabis Tax Rates in Vermont

Vermont (VT)Recreational & Medical

This state has legalized both recreational and medical cannabis.

Tax Rate Breakdown

State Excise Tax
14%
on cannabis sales
State Sales Tax
6%
additional
Max Effective Rate
~21%
combined max rate
Local Taxes AllowedYes
Medical Tax Rate0% (exempt)
Annual Revenue (2024)$20M
Tax Structure14% state excise tax plus 6% state sales tax plus 1% local option tax.

Overview

Vermont imposes a 14% excise tax on recreational cannabis sales, plus the standard 6% state sales tax. Municipalities may levy an additional 1% local option tax, bringing the maximum rate to 21%. Medical cannabis patients are exempt from all cannabis-specific taxes. Vermont's retail market launched in 2022 and revenue is still growing as the licensing system matures. Revenue is allocated to the general fund, substance abuse prevention, and after-school programs.

Key Facts

Frequently Asked Questions

What is the total cannabis tax in Vermont?+
Up to 21%: 14% excise + 6% sales + 1% local option. Most areas see about 20% total.
Is medical cannabis taxed in Vermont?+
No. Medical cannabis patients registered with the state are exempt from all cannabis taxes.
When did Vermont start selling recreational cannabis?+
Vermont legalized cannabis in 2018 but retail sales did not begin until October 2022. Revenue is still ramping up.

Compare Tax Rates in Related States

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