Colorado: Marijuana Tax Handbook


Colorado Marijuana Tax Rate

Sales Tax Medical Excise Tax Medical Max Medical Tax Sales Tax Recreational Excise Tax Recreational Max Recreational Tax
2.90% N/A 2.90% 15.00% 15.00% 30.00%

2024 Colorado Marijuana Tax Handbook

Colorado patients are required to pay a 2.90% sales tax on every purchase of medical marijuana. There is no additional excise tax on medical marijuana in Colorado.

Colorado consumers are required to pay a 15.00% sales tax on every purchase of marijuana for personal use. There is also an additional excise tax of 15% on every purchase of marijuana for personal use.

About Colorado Marijuana Tax

Colorado subjects medical marijuana to the standard 2.9% state sales tax rate.

Recreational marijuana and marijuana products are subject to a special 15% sales tax rate, called the "retail marijuana sales tax".

Localities in Colorado may also levy their own taxes on retail marijuana sales taxes.

Cultivators and qualifying cannabis product manufacturers must pay a 15% excise tax based on the average market rate of retail marijuana. This tax is imposed on the first sale or transfer from the marijuana cultivation facility to a store, manufacturing facility, or other cultivation facility. Transfers among cultivation facilities are exempt from the excise.

What is the most recent revenue statistic for Colorado?

$2.05 Billion in total since 2014.

Marijuana retail sales tax revenue, which is the largest source of marijuana tax revenue, is split between local governments and state funds, with a large percentage allocated for programs including health care, substance abuse prevention, and law enforcement.

Colorado uses the first $40M of annual marijuana excise tax revenue towards the Public School Capital Construction Assistance Fund.

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

Colorado'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 Colorado have a Controlled Substances Tax?

Colorado does not have a Controlled Substances tax involving Marijuana.

How do Colorado'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 Colorado Marijuana Taxes, visit the Colorado Marijuana Tax page.

Extra Resources

** This Document Provided By SalesTaxHandbook **