Cannabis is legal in Massachusetts for both medical patients and adult-use consumers, but what you pay at checkout can look very different depending on how you’re shopping. Massachusetts imposes different taxes for medical and recreational cannabis, so knowing what’s behind the pricetag empowers you to make the best choices for your needs.
In this blog, we’ll break down how cannabis is taxed in Massachusetts and why it matters.
Adult-Use Cannabis Taxes in Massachusetts
If you’re shopping for cannabis as an adult-use (recreational) customer, you’ll notice that taxes add up quickly at checkout. Here’s how it breaks down:
- 6.25% State Sales Tax: Just like many other retail goods in Massachusetts, cannabis purchases include the standard state sales tax.
- 10.75% State Excise Tax: This cannabis-specific tax applies to all adult-use purchases and is calculated based on the retail price.
- Up to 3% Local Tax: Cities and towns can choose to add their own tax, up to 3%, on top of state taxes.
That means recreational cannabis purchases can carry up to 20% in total taxes, something to keep in mind if you’re a frequent consumer. These taxes are important for funding local programs, but they can definitely impact your overall cost.
Medical Cannabis Taxes in Massachusetts
Shopping as a registered medical patient comes with some real advantages, including taxes. Unlike recreational customers, medical cannabis patients in Massachusetts are fully exempt from all cannabis-related taxes. That means:
- No state sales tax
- No excise tax
- No local tax
In other words, what you see on the price tag is what you pay. This tax-free status can lead to significant savings, especially for patients who rely on cannabis as part of their ongoing wellness or treatment plan.
To qualify, you’ll need a valid Massachusetts Medical Use of Marijuana Program ID card, along with a government-issued ID. If you’re using cannabis regularly for therapeutic reasons, registering as a medical patient is worth considering, not just for the cost savings, but for access to a wider range of products and higher purchase limits as well.
Where Do Massachusetts Cannabis Taxes Go?
Since the legalization of adult-use cannabis, Massachusetts has seen substantial tax revenue from cannabis sales. In 2024 alone, the state collected approximately $272 million in cannabis tax revenue from its record-breaking $1.64 billion in adult-use sales. These funds are actively fueling meaningful progress in the state.
1. Public Health
A portion of the cannabis tax revenue goes directly toward public health programs, including substance abuse prevention, education campaigns about responsible cannabis consumption, and addiction treatment services. These funds support initiatives that help create a safer, more informed environment for everyone in the Commonwealth.
2. Education and Youth Services
Massachusetts also invests cannabis revenue into education and youth development. This includes funding for school-based programs, youth mentorship initiatives, and early intervention efforts designed to keep young people safe and thriving.
3. Infrastructure & Transportation
Another slice of the pie goes toward infrastructure improvements. We’re talking road repairs, public transit upgrades, and local municipal projects. These funds help strengthen the communities where cannabis businesses operate, reinvesting dollars into the neighborhoods that support the industry.
4. Social Equity and Community Reinvestment
A critical part of Massachusetts’ cannabis tax framework is its dedication to equity. A portion of revenue is earmarked to support Social Equity Program participants, technical assistance for entrepreneurs from disproportionately impacted communities, and reinvestment into areas most affected by past cannabis criminalization.
By choosing legal cannabis, especially at a mission-driven dispensary like Mayflower, you’re investing in public health, education, local jobs, infrastructure, and a more equitable industry for all.
Know What You’re Paying For
Understanding the difference between medical and recreational cannabis taxes in Massachusetts helps you make smarter, more informed choices. Medical patients benefit from tax exemptions that make ongoing care more affordable, while recreational taxes play a key role in funding public services, from education and infrastructure to equity-focused initiatives.
At Mayflower, we’re committed to transparency, quality, and community impact. Our team is here to help you navigate your options with clarity and care. Visit us in Boston, Worcester, or Lowell and experience cannabis that’s rooted in purpose. Where you shop matters!
The contents of this blog are intended for informational purposes only. Always seek the advice of a physician or other qualified healthcare provider with any questions you may have regarding a medical condition.
