What Are the Tax Benefits of a Medical Cannabis Card?
Article written by
Ruth LemonVP of Operations
Content reviewed by
Dr. Lewis JasseyMedical Director - Pediatric Medicine
There are countless benefits to having a medical cannabis card. If you live in a state where recreational adult use is not legal, then a medical cannabis card is the only way to legally consume marijuana. But even if you do live in a state where recreational use is legal, there are many benefits to being a card carrier.
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Why Get a Medical Card?
Medical cards offer an additional layer of protection from law enforcement. If you are stopped by police while in possession of cannabis, you can easily show your card to prove you are a medical patient.
Medical card holders can usually carry more cannabis than recreational users too. This is helpful when you go to buy your medicine; it means fewer trips to the dispensary as well as a wider range of products to choose from.
Today we’ll dive into the tax benefits of having a medical cannabis card. While it is true that products purchased in a dispensary are usually a little more expensive than what you may buy on the street, medical patients in recreational states pay much lower taxes.
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Tax Rates for Medical Cannabis
Every state has different tax rates. But don’t worry, we’ve done the research for you. Here’s a breakdown of all the tax rates by state:
Alaska:
Medical Cannabis Card Holders: 0% tax
Recreational Users: 3-5% tax (changes according to municipality)
Arizona:
Medical Cannabis Card Holders: 8-10% tax
Recreational Users: 21.6% tax
Arkansas:
Medical Cannabis Card Holders: 10% tax
Recreational Users: No recreational program
California:
Medical Cannabis Card Holders: 15% tax
Recreational Users: 23-38% tax (changes according to municipality)
Colorado:
Medical Cannabis Card Holders: 2.9% tax
Recreational Users: 15% tax
Connecticut:
Medical Cannabis Card Holders: 6.35% tax
Recreational Users: 20-24% tax
Delaware:
Medical Cannabis Card Holders: 0% tax
Recreational Users: Recreational sales are estimated to begin in late 2024
Florida:
Medical Cannabis Card Holders: 6% tax
Recreational Users: No recreational program
Hawaii:
Medical Cannabis Card Holders: 4% tax
Recreational Users: No recreational program
Illinois:
Medical Cannabis Card Holders: 1% tax
Recreational Users: 16-31% tax (depending on product type)
Iowa:
Medical Cannabis Card Holders: 6% tax
Recreational Users: No recreational program
Louisiana:
Medical Cannabis Card Holders: 0% tax
Recreational Users: No recreational program
Maine:
Medical Cannabis Card Holders: 5.5% tax (or 8% for edibles)
Recreational Users: 15.5% tax
Maryland:
Medical Cannabis Card Holders: 0% tax
Recreational Users: 9% tax
Massachusetts:
Medical Cannabis Card Holders: 0% tax
Recreational Users: 17-20% tax
Michigan:
Medical Cannabis Card Holders: 6% tax
Recreational Users: 16% tax
Minnesota:
Medical Cannabis Card Holders: 0% tax
Recreational Users: 16.875% + local taxes (varies by municipality) – expected to be live in early 2025
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Missouri:
Medical Cannabis Card Holders: 4% tax
Recreational Users: 6-12% (varies by municipality)
Montana:
Medical Cannabis Card Holders: 4% tax
Recreational Users: 20%
Nevada:
Medical Cannabis Card Holders: 4.6% tax
Recreational Users: 15% tax
New Hampshire:
Medical Cannabis Card Holders: 0% tax
Recreational Users: No recreational program
New Jersey:
Medical Cannabis Card Holders: 2% tax (dropping to 0% in July 2022)
Recreational Users: 9% tax
New Mexico:
Medical Cannabis Card Holders: 5-8% tax
Recreational Users: 20% tax
New York:
Medical Cannabis Card Holders: 7% tax
Recreational Users: 13% tax
North Dakota:
Medical Cannabis Card Holders: 5% tax
Recreational Users: No recreational program
Ohio:
Medical Cannabis Card Holders: 6.5-7.25% tax
Recreational Users: No recreational program
Oklahoma:
Medical Cannabis Card Holders: 12% tax
Recreational Users: No recreational program
Oregon:
Medical Cannabis Card Holders: 0% tax
Recreational Users: 20% tax
Pennsylvania:
Medical Cannabis Card Holders: 0% tax
Recreational Users: No recreational program
Rhode Island:
Medical Cannabis Card Holders: 7% tax
Recreational Users: 20%
Utah:
Medical Cannabis Card Holders: 0% tax
Recreational Users: No recreational program
Vermont:
Medical Cannabis Card Holders: 0% tax
Recreational Users: 20% tax
Virginia:
Medical Cannabis Card Holders: 0% tax
Recreational Users: 26-29% tax
Washington:
Medical Cannabis Card Holders: 0% tax
Recreational Users: 37% tax
Washington DC:
Medical Cannabis Card Holders: 5.74% tax
Recreational Users: Sales are illegal, although adult use is legal
West Virginia:
Medical Cannabis Card Holders: 10% tax
Recreational Users: No recreational program
If you want to save money and gain access to better tested, better quality products, the best way forward is to apply for your medical marijuana card. Speak with a Leafwell physician today to see if you qualify.
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