Taxes & Revenue

Close-up of a cannabis leaf on a US hundred dollar bill, highlighting cannabis culture and economy.
Legal cannabis sales in New York are subject to several taxes designed to support state programs and ensure transparency. Purchases include a 9% state sales tax, up to 4% local sales tax, and a THC potency tax based on the milligrams of THC in each product type, such as flower, edibles, or concentrates. Revenue from these taxes funds public education, community reinvestment grants, drug treatment and prevention programs, and OCM regulatory oversight. Always review your receipt—licensed dispensaries must clearly itemize taxes, while unlicensed sellers often do not, which is a major red flag.

Legal cannabis sales in New York include:

  • State Sales Tax: 9%

  • Local Sales Tax: 4% (max)

  • THC Potency Tax: based on milligrams of THC per product type (flower, edibles, concentrates).

Revenue from these taxes funds:

  • Public education programs

  • Community reinvestment grants

  • Drug treatment and prevention initiatives

  • OCM regulatory oversight

Always review receipts — legal dispensaries must itemize taxes clearly. Unlicensed sellers do not, which is another red flag.

Close-up of a cannabis leaf on a US hundred dollar bill, highlighting cannabis culture and economy.
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