Washington Marijuana Tax Revenue 2025

What is the Tax Rate for Marijuana in Washington?

In Washington state, recreational marijuana is taxed at a 37% excise rate, collected at the point of sale, along with a 6.5% state sales tax and any applicable local taxes, resulting in an effective tax rate of around 44%. The Liquor and Cannabis Board (LCB) oversees the approval, regulation, and enforcement of cannabis licenses and is responsible for administering and collecting the excise tax.

For medical marijuana patients with a valid recognition card, there is no excise or sales tax, making their purchases more affordable. The LCB maintains the regulatory framework for both recreational and medical marijuana, ensuring compliance and effective management of the cannabis industry in the state.

Washington Cannabis Industry Taxes

The cannabis tax collected in Washington state has shown significant fluctuations over the past nine years, peaking at $555.40 million in 2021. Marijuana businesses in Washington have contributed to these substantial tax revenues, which saw a notable increase from $64.60 million in 2015 to $464.50 million in 2023. Despite some variability, the overall trend indicates a robust growth in tax revenue from the cannabis industry.

Last updated: July 25, 2024

Source: Washington State Department of Revenue