Illinois: Marijuana Tax Handbook
Illinois Marijuana Tax Rate
|Sales Tax Medical||Excise Tax Medical||Max Medical Tax||Sales Tax Recreational||Excise Tax Recreational||Max Recreational Tax|
2023 Illinois Marijuana Tax Handbook
Illinois patients are required to pay a 1.00% sales tax on every purchase of medical marijuana. There is no additional excise tax on medical marijuana in Illinois.
Illinois consumers are required to pay a 6.25% sales tax on every purchase of marijuana for personal use. There is also an additional excise tax of 10% on every purchase of marijuana for personal use.
About Illinois Marijuana Tax
- A 6.25% state retailer’s occupation tax applies to recreational marijuana sales along with any occupation taxes the county or municipality may impose. Municipal cannabis retailer occupation tax may not exceed 3% and the county cannabis retailers’ occupation tax cannot exceed 3.75% in an unincorporated area of the county and 3% in a municipality located within the county;
- medical marijuana is subject to a 1% state retailer’s occupation tax and is generally except from locally imposed retailers’ occupation taxes except for Regional Transportation Authority and Metro-East Transit District retailers’ occupation taxes.
The excise tax varies depending on the type and potency of a product:
- 20% of the purchase price for Cannabis-infused products
- 10% of the purchase price on cannabis other than an infused product with an adjusted THC level at or below 35%
- 25% of the purchase price on cannabis other than an infused product with an adjusted THC level above 35%
What is the most recent revenue statistic for Illinois?
$563 million since recreational sales approved
Tax revenues are deposited into the Cannabis Regulation Fund and are first used to pay for direct and indirect costs associated with the implementation, administration, and enforcement of the program and then a portion go to the Cannabis Expungement Fund for expungement of minor cannabis offenses. Of the remaining funds:
- 2% goes to public education on drugs and data collection on public health impacts of legal marijuana;
- 8% to the Local Government Distributive Fund for crime prevention, illegal marijuana interdiction, and driving under the influence of marijuana;
- 25% to the Recover, Reinvest, and Renew (3R) Program;
- 20% to mental health services and substance abuse programs;
- 10% to the Budget Stabilization Fund; and
- 35% to the General Revenue Fund
Is the Illinois Marijuana Tax Weight-Based or Percentage-of-price-Based?
Illinois' 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 Illinois have a Controlled Substances Tax?
Illinois does not have a Controlled Substances tax involving Marijuana.
How do Illinois' marijuana taxes compare to the states around it?
Note: It is illegal to transport marijuana accross state lines.
For more information about Illinois Marijuana Taxes, visit the Illinois Marijuana Tax page.