Cannabis Tax Rates in Washington
This state has legalized both recreational and medical cannabis.
Tax Rate Breakdown
Overview
Washington state levies the highest cannabis excise tax rate in the nation at 37% of the retail selling price. This excise tax replaced the original three-tier tax system in 2015 and is inclusive of all state and local sales taxes, simplifying the structure. Local governments are not permitted to levy additional cannabis-specific taxes. Qualifying medical patients and designated providers are exempt from the excise tax. Revenue is distributed to health care, education, substance abuse programs, and the general fund.
Key Facts
- •37% excise tax on retail price — highest in the nation
- •Excise tax is inclusive of state and local sales taxes
- •No additional local cannabis taxes permitted
- •Medical patients with recognition cards are fully exempt
- •Annual revenue approximately $600 million, third-highest nationally
Frequently Asked Questions
Why does Washington have the highest cannabis tax?+
Can cities in Washington add cannabis taxes?+
Are medical cannabis patients taxed in Washington?+
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See how Washington'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. Washington 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 Washington state tax authorities and consult with a qualified tax professional. Cannabismarketcap does not guarantee the accuracy or completeness of any information presented.