Cannabis Guide

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This guide provides sales and use tax information for the cannabis industry. Use the links in the Guide Menu to see information about that topic.

Sales of taxable cannabis products are subject to a gross receipts tax.

Effective July 1, 2025, the Cannabis Tax rate will increase to 15%. In addition to the Cannabis Tax, taxable cannabis products are subject to both:

6.875% state general rate sales tax
Any applicable local sales taxes based on where the transaction takes place

For more information on how to file, see Sales and Use Tax Filing Video

2025 Individual Cannabis Use Tax
We are updating Form UT1, Individual Use Tax Return, to include the Individual Cannabis Use Tax. Please wait for the new form if you need to file cannabis use tax for 2025 or earlier.

You may use the current form to file Individual Use Tax for only the general sales tax rate or liquor gross receipts tax.