The Missouri marijuana tax is 6% on recreational purchases and 4% on medical purchases, but those are only the cannabis-specific rates. Regular state and local sales taxes apply on top of them, and many jurisdictions add a further 3% local marijuana tax on recreational sales. In practice, a recreational buyer often pays 14% or more in combined taxes, and in the most heavily taxed areas the total can push past 17%.
The 6% Recreational Rate
Missouri voters approved Amendment 3 in November 2022, writing a 6% tax on adult-use marijuana into the state constitution.1Missouri Revisor of Statutes. Missouri Constitution XIV Section 2 – Marijuana Legalization, Regulation, and Taxation The dispensary calculates the tax on the retail price and collects it at the register. The Department of Revenue keeps no more than 2% of total collections, or its actual administrative costs if lower, before depositing the rest into the state’s dedicated marijuana fund.2Missouri Budget Project. Overview of Missouri’s Recreational Marijuana Tax Revenue
The rate is the same whether you’re buying flower, edibles, or concentrates, and the same regardless of the size of your purchase. It does not apply to medical marijuana dispensed to a registered patient or caregiver.
The 4% Medical Rate
Medical marijuana is taxed at 4% of the retail price. The rate came out of Amendment 2 in 2018 and sits in Article XIV, Section 1 of the Missouri Constitution.3Missouri Revisor of Statutes. Missouri Constitution XIV Section 1 – Right to Access Medical Marijuana To get the medical rate, you need a valid state-issued patient or caregiver card. Dispensaries check your status in the state’s tracking system before ringing the sale up as medical. If your card has lapsed, the purchase either can’t go through as a medical transaction or defaults to the recreational rate.
All revenue from the 4% tax goes into the Missouri Veterans’ Health and Care Fund.3Missouri Revisor of Statutes. Missouri Constitution XIV Section 1 – Right to Access Medical Marijuana
Regular Sales Tax Applies on Top
This is where the headline numbers mislead. The Department of Revenue has confirmed that both medical and adult-use marijuana are subject to all regular state and local sales taxes, the same as any other retail goods.4Missouri Department of Revenue. Marijuana Facilities Industry Guidance
Missouri’s base state sales tax is 4.225%.5Missouri Department of Revenue. Sales/Use Tax Local jurisdictions add their own rates on top. The DOR’s own guidance walks through a concrete example: in an area with a combined 8.45% general sales tax rate (4.225% state plus 4.225% local), the total tax on a medical purchase works out to 12.45%, and the total on a recreational purchase is 14.45%.4Missouri Department of Revenue. Marijuana Facilities Industry Guidance
Your effective rate depends heavily on where the dispensary sits. One in a low-tax jurisdiction will ring up noticeably less than one in a high-tax city, even on the same product at the same shelf price.
The Optional 3% Local Marijuana Tax
Separate from the regular local sales tax, Article XIV, Section 2 lets cities, towns, and counties impose an additional tax of up to 3% specifically on adult-use marijuana sold within their borders.6Missouri Department of Revenue. Marijuana This local marijuana tax does not apply to medical purchases. Some jurisdictions have adopted it; others have not.
Whether both a city and a county can charge that 3% at the same store was the subject of a major ruling. In July 2025, the Missouri Supreme Court held 6-1 that local governments cannot stack the tax. The court read the constitutional amendment to define “local government” as a single entity for any given dispensary location: the city, village, or town in incorporated areas, and the county in unincorporated ones. Before the ruling, more than 70 areas across the state had both a city and a county collecting 3%, effectively double-taxing the sale.
In the most heavily taxed jurisdictions where the add-on applies, a recreational buyer still faces the 6% state marijuana tax, regular state and local sales taxes that can total 8% or more, and the 3% local marijuana tax. That stack can push total taxation above 17% of the purchase price.
Where the Money Goes
Marijuana tax revenue in Missouri cannot flow to the general fund. The constitution directs it to specific uses.
The 4% medical tax funds the Missouri Veterans’ Health and Care Fund. After the Department of Health and Senior Services covers the cost of running the medical program, the balance goes to the Missouri Veterans Commission for healthcare and related services for veterans and their families.3Missouri Revisor of Statutes. Missouri Constitution XIV Section 1 – Right to Access Medical Marijuana
The 6% adult-use tax flows into the Veterans, Health, and Community Reinvestment Fund. The state first pays administrative costs for operating the marijuana program and expenses tied to criminal record expungement. What’s left is split into equal thirds among the Missouri Veterans Commission, drug treatment programs administered through the Department of Health and Senior Services, and the Missouri Public Defender System.1Missouri Revisor of Statutes. Missouri Constitution XIV Section 2 – Marijuana Legalization, Regulation, and Taxation
If You Run a Marijuana Business
Operators face a different set of tax questions than buyers.
Federal 280E and the Missouri Workaround
Marijuana remains a federally controlled substance, and Internal Revenue Code Section 280E bars businesses trafficking in controlled substances from deducting ordinary expenses like rent, payroll, and marketing on federal income tax returns. That pushes the effective federal tax rate on cannabis companies well above other industries. Missouri has decoupled from 280E at the state level, so cannabis businesses can deduct standard business expenses on their Missouri state income tax returns. A Missouri dispensary still carries the 280E restriction on its federal return but gets relief on the state side.
Cash Reporting on Form 8300
Limited banking access leaves many marijuana businesses handling significant cash. The IRS requires any business that receives more than $10,000 in cash from a single transaction or related transactions to file Form 8300 within 15 days. The business must also give the payer a written statement by January 31 of the following year, and keep copies of each Form 8300 for five years. Late filing or failure to file can trigger penalties. Businesses that file 10 or more information returns of other types during the year must submit Form 8300 electronically.7Internal Revenue Service. Form 8300 and Reporting Cash Payments of Over $10,000