The tax on weed in Washington comes in two parts: a flat 37% state cannabis excise tax that is already built into the shelf price, and standard retail sales tax added at the register, which runs from 6.5% up to roughly 10.5% depending on where you shop.1Washington State Legislature. Washington Revised Code 69.50.535 – Cannabis Excise Tax2Washington Department of Revenue. Sales and Use Tax Rates Registered medical patients can skip both taxes on qualifying products. The way the two taxes interact is a little unusual, so it helps to see how each piece works on its own.
The 37% Cannabis Excise Tax
Every retail cannabis purchase in Washington carries a 37% excise tax on the selling price. Retailers are required by law to fold this tax into the shelf price and any advertised price, so the number on the label already includes it.1Washington State Legislature. Washington Revised Code 69.50.535 – Cannabis Excise Tax You won’t see it added as a separate line the way sales tax is. It shows up itemized on your receipt after the transaction, since the statute requires the excise tax to be “separately itemized from the state and local retail sales tax.”
The 37% applies to cannabis concentrates, usable flower, and infused products sold at licensed retail stores. Only the final sale to a consumer triggers it, not transactions between growers, processors, and retailers. Retailers collect the tax on behalf of the Washington State Liquor and Cannabis Board.3Washington Department of Revenue. Taxes Due on Cannabis
Sales Tax at the Register
Cannabis is also subject to Washington’s standard retail sales tax. The state base rate is 6.5%, and cities and counties add their own local rates on top.2Washington Department of Revenue. Sales and Use Tax Rates In most parts of the state the combined rate falls somewhere between 7.5% and 10.5%. Seattle tends to land near the high end.
One detail changes the math in your favor: the 37% excise tax is specifically excluded from the price that sales tax applies to.1Washington State Legislature. Washington Revised Code 69.50.535 – Cannabis Excise Tax Sales tax is calculated on the base product price, not the higher shelf price shown on the label. The two taxes don’t compound.
What Your Total Actually Looks Like
Say a product has a base price of $73 before any tax. The retailer adds the 37% excise tax, about $27.01, which brings the shelf price to roughly $100. That $100 is what you see on the label.
At the register, sales tax is calculated on the $73 base, not the $100 shelf price. In a location with a combined sales tax rate of 10.25%, that’s about $7.48. Your total out the door is roughly $107.48. Your receipt will typically break out the base price, the excise tax, and the sales tax as separate lines.
Medical Patient Exemptions
Registered medical patients can buy cannabis in Washington without paying either tax, but the two exemptions have different rules.
Sales Tax Exemption
Qualifying patients and their designated providers who hold a valid recognition card are exempt from the retail sales tax when they purchase from a dispensary that carries a medical cannabis endorsement.4Washington State Legislature. Washington Revised Code 82.08.9998 – Exemptions, Cannabis The exemption covers concentrates, usable cannabis, and infused products. It also extends to low-THC, high-CBD products identified by the Department of Health as medically beneficial, which any customer can buy sales-tax-free at a medically endorsed retailer.
Excise Tax Exemption
Since mid-2024, registered patients and designated providers are also exempt from the 37% excise tax, but only when three conditions are all met:5Washington State Department of Health. Medical Cannabis Excise Tax Exemption HB 1453 FAQ
- You must be listed in the Department of Health’s Medical Cannabis Authorization Database and present a valid recognition card at purchase.
- The store must hold a current medical cannabis endorsement from the Liquor and Cannabis Board.
- The specific product must meet the Department of Health’s testing and labeling standards under WAC 246-70 (a “DOH-compliant” product).
If any one of those conditions is missing, the 37% applies as usual. The excise tax exemption is scheduled to expire on June 30, 2029.6Legal Information Institute. Washington Administrative Code 314-55-090 – Medical Cannabis Patient Excise Tax Exemption The sales tax exemption does not carry the same sunset date.
For a registered patient buying a DOH-compliant product at an endorsed retailer, the savings add up fast. On a product with a $100 shelf price, you’d skip roughly $27 in excise tax and about $7 in sales tax, paying only the $73 base price.