Best State for Low Cannabis Tax: 5 States Ranked

Missouri wins for the lowest cannabis tax burden among legal states. Its 6% adult-use excise tax is the smallest state-level marijuana excise in the country, and local governments cannot layer a cannabis-specific surtax on top of it. I ranked states on four things: the state cannabis excise rate, whether a general sales tax stacks on the same receipt, how much local government can add, and how those rules land on an online or delivery order rather than an in-store purchase.

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1. Missouri: lowest state excise tax

Missouri charges a 6% excise tax on adult-use cannabis, applied on top of ordinary state and local sales taxes instead of as a separate marijuana surtax. Medical purchases are treated more favorably under state tax code. On a delivery order, the practical result is a checkout total in the low teens as a percentage, well below the 20% and up that shoppers see in Illinois, California, or Washington.

best state for low cannabis tax

Pros

• 6% state excise, the lowest recreational rate among legal states
• No cannabis-specific local tax, only ordinary city and county sales taxes
• Medical cannabis gets better treatment than adult use

Cons

• Local sales tax rates differ by city and county, so two dispensaries an hour apart can quote different totals
• Delivery and online ordering rules are decided city by city

Best for: shoppers who want the smallest tax line on a recreational order and who live in or near a municipality that permits delivery.

marijuana excise tax rates

2. Oregon: no general sales tax

Oregon applies a 17% state marijuana tax at the register and allows local governments to add up to 3%. Oregon has no general sales tax, so nothing else stacks on top. That structure keeps the state competitive with places that advertise low headline rates and then add 6% to 9% at checkout.

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Pros

• No general sales tax, so the 17% is close to the whole story
• Local add-on is capped at 3%
• Mature market with wide brand selection and established delivery coverage

Cons

• 17% excise is higher than Missouri's 6%
• Some cities and counties still apply their optional local tax
• Compliance costs can show up in shelf prices

Best for: Pacific Northwest shoppers who value product variety and reliable delivery over the absolute lowest rate.

3. Michigan: flat and predictable

Michigan adds a 10% excise tax on top of the state's 6% sales tax, which puts the combined burden at roughly 16% to 17%. There is no cannabis-specific local tax, so the same rule applies whether you order from Detroit or a smaller town.

Pros

• Rate stays close to uniform statewide
• No local cannabis surtax
• Large retail footprint with strong delivery options in major metros

Cons

• Still higher than Missouri and Maine
• Sales tax applies to the retail price including excise
• Some municipalities have opted out of adult-use sales

Best for: shoppers who want one predictable rate and a deep menu of brands.

4. Maine: modest rate, smaller footprint

Maine taxes adult-use cannabis at 10% excise plus the state's 5.5% sales tax, about 15.5% total, and municipalities cannot add a marijuana-specific tax. Medical cannabis is handled separately and often more lightly.

Pros

• About 15.5% combined, among the lower totals in the Northeast
• No local cannabis surtax
• Well-developed medical program

Cons

• Fewer stores and narrower delivery coverage than Michigan or Oregon
• Excise is higher than Missouri's
• Rural delivery is limited

Best for: medical patients and shoppers in southern Maine who want a stable, modest rate.

5. New Jersey: low register tax, fees upstream

New Jersey applies its 6.625% state sales tax to adult-use cannabis rather than a percentage excise at the register, and instead charges a social equity excise fee on cultivators measured per ounce. That structure can keep the visible tax on a receipt lower than most states, though cultivator fees can work their way into retail prices.

Pros

• Low visible tax at the point of sale
• Medical cannabis is exempt from state sales tax
• Dense store network in the northern part of the state

Cons

• Cultivator excise fee can be passed through in price
• Your real total depends on how a given operator prices
• Delivery rules are still developing

Best for: shoppers near the New York metro who want a low register tax and quick access.

Bottom line

Missouri is the best state for low cannabis tax because 6% is the lowest state excise on recreational sales and no cannabis-specific local tax exists. Oregon is the next best pick once you account for its missing sales tax, Michigan gives you the most predictable total, and Maine and New Jersey round out the list for shoppers in the Northeast. Check your own city and county rates before you assume the state number is what you will pay.