MN Cannabis Tax Breakdown: How Much is Tax on Weed in MN? (2026)

When you purchase recreational cannabis in Minnesota, the sticker price you see on the shelf is rarely the final price you pay at the register.

If you are wondering, "How much is tax on weed in MN?", the short answer is that you will pay roughly 17% to 19% in total taxes on your purchase, depending on the city or county where the dispensary is located.

Here is a complete breakdown of exactly where that money goes and how Minnesota’s cannabis tax structure works in 2026.

The 3 Taxes on Minnesota Cannabis

Every recreational cannabis transaction in Minnesota is subject to three different layers of taxation:

1. The Cannabis Gross Receipts Tax (10%)

This is the state-mandated specific tax on cannabis. A 10% gross receipts tax is applied to all retail sales of adult-use cannabis products, including flower, edibles, concentrates, and topicals.

Note: This tax does NOT apply to medical cannabis purchases made by registered patients at designated medical dispensaries.

2. State General Sales Tax (6.875%)

Cannabis products are treated like other retail goods in Minnesota and are subject to the state's standard general sales tax of 6.875%.

3. Local Sales Taxes (0% to 2%+)

Depending on the specific city or county where the dispensary is located, you will also pay local transit or municipal sales taxes. For example, Minneapolis has an additional local sales tax, pushing the overall general sales tax rate higher than a rural county might.

Example: Buying an Eighth in Minneapolis

To put this into perspective, let's look at a hypothetical purchase at a dispensary in Minneapolis.

Assume you are buying 3.5 grams (an eighth) of premium flower with a shelf price of $50.00.

• Base Price: $50.00
• Cannabis Gross Receipts Tax (10%): $5.00
• State Sales Tax (6.875%): $3.44
• Local/Transit Taxes (approx 1.15% in MPLS): $0.58
• Total Price at Register: $59.02

(Effective tax rate: 18.025%)

How Does Minnesota Compare to Other States?

Compared to the rest of the country, Minnesota's cannabis tax rate is actually quite reasonable. The 10% gross receipts tax is significantly lower than some of the highest-taxed states in the nation.

Here is how Minnesota stacks up against other legal markets:

• Washington: 37% excise tax + state sales tax
• Illinois: 10% to 25% depending on THC potency + state/local taxes (can reach 40%+)
• Colorado: 15% retail marijuana sales tax + standard sales tax
• Michigan: 10% excise tax + 6% sales tax
• Minnesota: 10% gross receipts tax + ~8% state/local sales taxes

Minnesota lawmakers intentionally kept the cannabis tax relatively low to discourage the illicit market. If legal cannabis is taxed too heavily, consumers simply continue buying from the legacy (unregulated) market.

Do I Have to Pay Taxes on Medical Cannabis?

No. If you are a registered patient in the Minnesota Medical Cannabis Program and purchase your products from a licensed medical cannabis dispensary, you do not pay the 10% gross receipts tax, nor do you pay the standard state sales tax. Medical cannabis is treated as medicine and is tax-exempt.

If you purchase frequently, the tax savings alone can make it worth maintaining your medical card even though recreational sales are legal.

Where Does the Tax Money Go?

The revenue generated from the 10% Cannabis Gross Receipts Tax is divided into a few key areas by the state:

1. 80% goes into the state's General Fund.
2. 20% goes into a Local Government Cannabis Aid account, which is distributed to cities and counties to help fund local administration and enforcement of cannabis laws.

For more information on current market dynamics and why base prices are what they are, read our guide on Why is Weed So Expensive in Minnesota? or explore our Minnesota Cannabis Prices Explained pillar page.