Understanding Minnesota Cannabis Taxes: What Consumers Pay

<p>Understanding the tax structure for cannabis purchases in Minnesota helps consumers know exactly what they're paying. Here's a comprehensive breakdown of cannabis taxes in the state.</p>

<h2>Current Tax Structure</h2> <p>As of July 1, 2025, Minnesota applies the following taxes to recreational cannabis purchases:</p>

<ul> <li><strong>Cannabis Gross Receipts Tax:</strong> 15% (increased from 10%)</li> <li><strong>State Sales Tax:</strong> 6.875%</li> <li><strong>Local Sales Tax:</strong> Varies by location (0-2%)</li> </ul>

<p>For a $100 purchase in Minneapolis, the total tax would be approximately $23.88 (15% + 6.875% + 2% local).</p>

<h2>How Tax Revenue is Used</h2> <p>Cannabis tax revenue is distributed as follows:</p> <ul> <li>20% to local governments where sales occur</li> <li>20% to social equity programs and grants</li> <li>10% to substance abuse prevention and treatment</li> <li>50% to the state general fund</li> </ul>

<h2>Medical Cannabis Tax Exemption</h2> <p>Registered medical cannabis patients are exempt from the 15% cannabis gross receipts tax, paying only standard sales tax on purchases.</p>