What Is Cannabis Tax?
Cannabis tax refers to the state and local taxes applied to recreational cannabis purchases in New Jersey, added at the point of sale.
Cannabis Tax Explained
Cannabis purchases in New Jersey are subject to state sales tax and a Social Equity Excise Fee. The state sales tax rate applies to recreational cannabis products at the point of sale. Additionally, municipalities may impose a local transfer tax of up to 2%. Medical cannabis patients in New Jersey are exempt from sales tax on their purchases, which is one of the financial benefits of maintaining a medical card. Tax revenue supports social equity programs, public education, and community reinvestment.
Why It Matters
Understanding cannabis taxes helps you budget for your purchases. Medical patients save significantly on taxes — another reason to consider a medical card if you qualify.
Also Known As
Frequently Asked Questions
Do medical patients pay tax on cannabis?
Medical cannabis patients in New Jersey are exempt from sales tax, which can represent significant savings over time.