Alabama: Marijuana Tax Handbook

Alabama Marijuana Tax Rate

2024 Alabama Marijuana Tax Handbook

Alabama patients are required to pay a 9.00% sales tax on every purchase of medical marijuana. There is also an additional excise tax of 9.00% on every purchase of medical marijuana.

Recreational marijuana is illegal in Alabama, so there are no taxes for it.

About Alabama Marijuana Tax

The proposed tax law is set to be an 9% gross proceeds tax on medical cannabis retail sales. Also, an annual privilege tax those doing business under the law will also be set but so far they have not set a percentage yet.

Buyer will pay the medical excise tax.

What is the most recent revenue statistic for Alabama?

Alabama plans to use to 60% of revenue in a General Fund, and 30% will fund medical cannabis research.

Is the Alabama Marijuana Tax Weight-Based or Percentage-of-price-Based?

Alabama's marijuana program uses a Percentage-of-price tax system. This means that the tax charged is calculated using the retail price of the Marijuana at the time of purchase.

Does Alabama have a Controlled Substances Tax?

Yes. Alabama imposes a Controlled Substances Tax. See Ala. Code Sec. 40-17A-1 through Ala. Code Sec. 40-17A-16 . Dealers must pay the tax if they possess, distribute, sell, transport, import, transfer or otherwise use any marihuana. The tax is imposed on marijuana and controlled substances at the rate of $3.50 per gram of marijuana or portion of a gram. Official stamps, labels or other indicia to be affixed on marihuana or controlled substances must be bought from the Department of Revenue.

How do Alabama's marijuana taxes compare to the states around it?

Note: It is illegal to transport marijuana accross state lines.