Massachusetts Cannabis Tax Rate Compared to Other States

Modified on March 6, 2021
Originally published on 18-Jul-17

Massachusetts Weed Tax

Massachusetts Cannabis Tax Rate

Massachusetts voters approved a recreational marijuana sales plan that positioned the state to have the second-lowest tax rate of all the states with a legalized industry, but a deal struck Monday is going to increase that tax rate.

The compromise language mostly splits the difference between a House proposal to raise the total tax on marijuana to a mandatory 28 percent and the Senate version of the bill, which called for keeping the tax at a maximum of 12 percent.

Under the agreement, consumers would pay a 10.75 percent excise tax in addition to the state’s regular 6.25 percent sales tax. Cities and towns would also have the option of adding a 3 percent local tax.

This three-part taxation plan is simpler than some of the other states with recreational pot, and more complicated than others.

Massachusetts Cannabis Tax Compared to tobacco and alcohol

The proposed marijuana tax rate in Massachusetts remains significantly lower than the state’s taxes on tobacco products, where cigarettes or cigars are taxed at a rate of 40 percent plus $3.51 per 20-count package. Smokeless tobacco is taxed at a rate of 210 percent.

Massachusetts’ taxes on alcoholic beverages ranges from a few cents to over $4, depending on the size, variety and proof of the product.

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