In Maryland, if you buy adult-use cannabis, you’ll pay a special sales and use tax of 9% right at checkout. This tax kicked in on July 1, 2023, when Maryland voters passed Question 4 and made adult-use cannabis legal.
The 9% tax applies only to products you buy for adult-use, like flower, edibles, and vape cartridges, at stores that have a license. It matches the tax rate that Maryland charges on alcohol and gets added on top of the price you see on the shelf.
If you’re a registered medical cannabis patient, you’re in luck: you don’t pay the 9% tax on any medical cannabis products. This rule is in place to keep medicine affordable for people using cannabis to treat health issues.
Mark your calendar: on July 1, 2025, the 9% cannabis tax will jump to 12%. This increase is part of the plan the 2025 General Assembly approved to fund programs in the state.
Beginning immediately, the tax rate on adult-use cannabis sales in Maryland now climbs from 9% to 12%, while the state will continue to exempt medical cannabis sales from tax. The 3% bump is aimed at providing the state with extra revenue for its essential public services and its general budget.
Though the tax burden rests on adult-use customers at checkout, dispensaries are the ones officially in charge. They collect the extra 3%, send the funds to the Maryland Comptroller, and keep thorough files to show adult sales and medical transactions are kept apart. Dispensaries also need to file regular online tax returns through the Maryland Comptroller’s portal.
Maryland’s 9% tax, now 12%, remains on the lower end compared to many adult-use states. A number of states charge excise taxes of 15% or even higher on top of existing state and local sales taxes, which can make overall costs for customers harder to predict. Maryland’s single-rate system stays simpler for businesses and offers some pricing steadiness for shoppers, at least until the coming 2025 bump.
Cannabis in Maryland costs 9% today, with the extra 3% heading to 12% in mid-2025. For dispensaries, customers, and anyone working on the finances inside the cannabis field, knowing how this tax works and when it applies is mandatory for smart sales and planning.
Plan ahead for Maryland's cannabis tax changes — contact Watter CPA today for expert advice on compliance, reporting, and financial planning!
