Illinois Marijuana Tax Revenue 2025

What is the Tax Rate for Marijuana in Illinois?

In Illinois, various taxes are applied to cannabis products, both for medical and adult use. These taxes include the Cannabis Purchaser Excise Tax and the Retailers' Occupation Tax.

Sales Tax

Both medical and adult use cannabis are subject to the Retailers' Occupation Tax, with different rates and exemptions.

Medical Cannabis

• 1% State Retailers' Occupation Tax rate.
• Usually not subject to local retailers' occupation taxes, with the exception of those from the Regional Transportation Authority and the Metro-East Transit District.

Adult Use Cannabis

• 6.25% State Retailers' Occupation Tax rate.
• Subject to local retailers' occupation taxes similar to other general merchandise.
• Counties and municipalities may impose additional local taxes:
  • Municipal Cannabis Retailers' Occupation Tax: Up to 3%.
  • County Cannabis Retailers' Occupation Tax: Up to 3.75% in unincorporated areas and 3% in municipalities.

Cannabis Purchaser Excise Tax

Cannabis dispensaries must collect and remit the Cannabis Purchaser Excise Tax on all retail sales of adult-use cannabis. The tax rates are as follows:

• 10% of the purchase price for adult use cannabis with an adjusted THC level of 35% or less.
• 25% of the purchase price for adult use cannabis with an adjusted THC level above 35%.
• 20% of the purchase price for adult use cannabis-infused products.

Source: Illinois Department of Revenue