January 2026: Cannabis Sales Tax Hike Takes Effect In Maine
Sales taxes on the purchase of adult-use cannabis products increased from 10% to 14% in Maine, effective January 1, 2026. The sales tax hike was proposed by the Governor to address the state’s budget deficit. However, separate provisions in the new tax law reduce certain excise taxes imposed upon cannabis cultivators and may result in lower retail prices for consumers. Medical cannabis products are already subject to lower taxes.
Maine is one of several states, including Maryland, Michigan, and Minnesota, where lawmakers voted in 2025 to increase cannabis-related sales taxes. Michigan’s tax increase is currently challenged in court. By contrast, in October 2025, a legislative effort rolled back marijuana-related taxes in California.
October 2025: Michigan Senate passed a 24% wholesale tax on marijuana
Michigan Senate voted to pass a 24% wholesale tax on cannabis products (marijuana) sold in the state. The measure is estimated to raise $420 million in new revenue to fund road repairs and construction in the new fiscal year. Currently, Michigan imposes 10% tax on retail sales of recreational marijuana.
September 2025: California reverses 25% tax hike on cannabis
The California Governor signed a bill canceling a planned 25% tax hike on legal cannabis and locking in the state’s excise tax rate at 15% through 2028. The new law is designed to help licensed growers and retailers stay afloat and better compete with the illegal market. Supporters argue that lowering the tax burden is essential to stabilizing the legal cannabis industry, which has been struggling with declining sales, widespread business closures, and shrinking tax revenue.
Critics claim that the tax cut will strip away funding from programs that rely on cannabis revenue – including the childcare for foster kids and emergency childcare for low-income families. Since January 2018, California has collected more than $7.3 billion in cannabis tax revenue. The law change comes as a special state task force continues to crack down on illegal cannabis. Since 2022, enforcement efforts have destroyed nearly $900 million worth of illegal products.
Recreational Marijuana Taxes by State
| State | Tax Rate |
| Alaska | $50/oz. mature flowers; $25/oz. immature flowers; $15/oz. trim; $1 per clone |
| Arizona | 16% on Retail Sales |
| California | 15% on Retail Gross Receipts |
| Colorado | 15% on Wholesale Average Market Rate ($658 per Pound of Bud); 15% on Retail Sales |
| Connecticut | 3% on Retail Sales; $0.00625 per milligram of THC in plants; $0.0275 per milligram of THC in edibles; $0.009 per milligram of THC in other cannabis products; $1 per THC Infused Beverage |
| Delaware | 15% on Retail Sales |
| Illinois | 7% on Wholesale Gross Receipts; 10% on Retail Sales of cannabis products with ≤35% THC; 20% on Retail Sales of cannabis-infused products like edibles; 25% on Retail Sales of any product with a THC concentration >35% |
| Maine | 10% on Retail Sales; $335/lb. flower; $94/lb. trim; $35 per mature plant; $1.5 per immature plant or seedling; $0.30 per seed |
| Maryland | 9% on Retail Sales |
| Massachusetts | 10.75% on Retail Sales |
| Michigan | 10% on Retail Sales |
| Minnesota | 10% on Retail Gross Receipts |
| Missouri | 6% on Retail Sales |
| Montana | 20% on Retail Sales |
| Nevada | 15% on Wholesale Fair Market Value ($1,296 per Pound of Flower); 10% on Retail Sales |
| New Jersey | $2.50 per ounce |
| New Mexico | 12% on Retail Sales |
| New York | 9% on Wholesale Sales; 13% on Retail Sales |
| Ohio | 10% on Retail Sales |
| Oregon | 17% on Retail Sales |
| Rhode Island | 13% on Retail Sales |
| Vermont | 14% on Retail Sales |
| Washington | 37% on Retail Sales |
