What Are the Tax Benefits of a Medical Cannabis Card?

Ruth Lemon
Ruth Lemon - VP of Operations

Jun 02 2021 - 3 min read

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.

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.

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: No recreational program

Delaware:

Medical Cannabis Card Holders: 0% tax

Recreational Users: No recreational program

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: No recreational program

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: No recreational program

Missouri:

Medical Cannabis Card Holders: 4% tax

Recreational Users: No recreational program

Montana:

Medical Cannabis Card Holders: 4% tax

Recreational Users: 20% – program due to go live in 2022

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: No recreational program

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: No recreational program

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.

Download A Free Guide to Medical Marijuana
Written by
Ruth Lemon
Ruth Lemon

Ruth Lemon has worked in Cambodia and Australia, gaining experience in the non-profit sector, education and international development, and digital marketing. Ruth is helping Leafwell to scale without compromising the customer experience and seeks to create a frictionless customer journey. She now lives in the UK with her rescued Cambodian cat and believes Leafwell is improving access to and understanding of a valuable medical alternative.

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