Arizona: Marijuana Tax Handbook


Arizona Marijuana Tax Rate

Sales Tax Medical Excise Tax Medical Max Medical Tax Sales Tax Recreational Excise Tax Recreational Max Recreational Tax
5.60% N/A 5.60% 5.60% 16.00% 21.60%

2024 Arizona Marijuana Tax Handbook

Arizona patients are required to pay a 5.60% sales tax on every purchase of medical marijuana. There is no additional excise tax on medical marijuana in Arizona.

Arizona consumers are required to pay a 5.60% sales tax on every purchase of marijuana for personal use. There is also an additional excise tax of 16% on every purchase of marijuana for personal use.

About Arizona Marijuana Tax

Arizona's sales tax (transaction privilege tax "TPT") applies to both medical and recreational marijuana sales. Counties and cities can also assess a local TPT to marijuana sales in their jurisdictions. These rates vary from 1 to 4%, in addition to the 5.6% statewide TPT

A special excise tax, the Marijuana Excise Tax (MET), applies to recreational marijuana, per A.R.S. ยง 42-5452(A). This excise tax is in addition to the Arizona transaction privilege tax (sales tax) that is assessed by the state and city/county, which varies.

What is the most recent revenue statistic for Arizona?

Since Jan. 1, 2021, Arizona has collected over $217 million in tax revenues.

Revenues from Arizona's recreational marijuana excise tax, plus licensing fees, are put into the "Smart and Safe Arizona Fund (SSAF)". After paying for various agency's costs associated with marijuana regulation, this fund is distributed between community colleges, law enforcement, fire departments, transportation departments, public health & criminal justice programs, and the state Attorney General.

Revenues from the marijuana TPT go into the general fund, except for the city and county sales tax revenues which are retained by those jurisdictions.

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

Arizona'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 Arizona have a Controlled Substances Tax?

Arizona does not have a Controlled Substances tax involving Marijuana.

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

New Mexico

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

For more information about Arizona Marijuana Taxes, visit the Arizona Marijuana Tax page.

** This Document Provided By SalesTaxHandbook **