Ohio Marijuana Tax Revenue 2025

What is the Tax Rate for Marijuana in Ohio?

Marijuana businesses in Ohio operate under a unique tax structure that varies depending on whether the cannabis is for medical or recreational use. This differentiation in tax rates reflects the state's approach to managing and regulating the cannabis industry while also generating revenue for public services.

Medical Cannabis Taxation

For medical cannabis, the state sales and use tax rate stands at 5.75%. This base rate is consistent across Ohio and applies to all qualifying medical marijuana purchases. However, it's essential to note that counties and regional transit authorities within Ohio have the authority to levy additional sales and use taxes. This means that depending on the county or municipality where a purchase is made, the overall tax rate on medical cannabis could be higher than the state base rate.

Recreational Marijuana Taxation

Recreational marijuana, on the other hand, is subject to a different tax rate. Currently, the sales tax for recreational marijuana is set at 10%. This tax is specifically designed to manage the recreational market and ensure that adequate funds are collected to support regulatory activities, public health initiatives, and other state-funded programs.

Proposed Changes in Recreational Marijuana Excise Tax

In 2023, House Bill 86 proposed a significant change to the existing tax structure for adult-use marijuana. The bill suggests increasing the current excise tax on recreational marijuana from 10%to 15%. If enacted, this change would further boost the revenue generated from recreational marijuana sales and potentially enhance the funding available for various state programs and initiatives related to public health and safety.

Source: Ohio Department of Taxation