Illinois Marijuana Tax Revenue 2025
- Illinois Cannabis
- Cannabis Business in Illinois
- Illinois Marijuana Tax Revenue
What is the Tax Rate for Marijuana in Illinois?
Key Points
Illinois cannabis transactions are all taxed:
Medical cannabis patients pay a reduced of 1 to 2.25 percent.
Recreational consumers pay up to 40%, depending on the product type and THC level.
Medical Cannabis Taxes
Medical marijuana patients benefit from much lower tax rates. Purchases are only subject to the 1% State Retailers’ Occupation Tax (the same reduced rate applied to prescription drugs).
- Typically, medical cannabis is not subject to local occupation taxes, except in special transit districts such as the Regional Transportation Authority or the Metro-East Transit District.
- In those areas, the total effective rate is 2.25% (1% state tax + 1.25% local transit tax). Patients can check the exact tax rate in their city or county by using the Illinois Tax Rate Database
Adult-Use Cannabis Taxes
Recreational cannabis purchases face a stacked system of taxes that includes both sales taxes and special cannabis excise taxes. Here’s the breakdown:
State Sales Tax – 6.25% applied to the purchase price (may appear as 7.25% in some cities with local add-ons).
Municipal Cannabis Retailers’ Occupation Tax – Cities may impose up to 3%. In Chicago, this appears on receipts as “Home Rule Tax” (1.25%).
County Cannabis Retailers’ Occupation Tax – Counties may impose up to 3% in municipalities, or 3.75% in unincorporated areas. In Cook County, this appears on receipts as “County Home Rule Tax” (1.75%).
Retailers’ Occupation Tax (ROT) – An additional 3% tax specific to cannabis sales.
Cannabis Purchaser Excise Tax – Based on THC content or product type:
10% on cannabis with THC ≤ 35%
25% on cannabis with THC > 35%
20% on cannabis-infused products (edibles, tinctures, etc.)
Comparison of Taxes on Medical and Adult-Use Cannabis Purchases in Illinois
Sample Medical Marijuana Purchases (City of Chicago)
| Purchase Amount | Type of Customer | State + Local Tax (2.25%) | Total Taxes Paid | Total Cost |
|---|---|---|---|---|
| $100 | Medical | $2.25 | $2.25 | $102.25 |
Sample Adult-Use Marijuana Purchases (City of Chicago)
| Purchase Amount | Type of Customer | State Sales Tax (7.25%) | City Taxes (1.25% + 1.75%) | County Tax (3%) | ROT (3%) | Excise Tax | Total Taxes Paid | Total Cost |
|---|---|---|---|---|---|---|---|---|
| $100 | Adult-use (≤35% THC) | $7.25 | $3.00 | $3.00 | $3.00 | $10.00 (10%) | $26.25 | $126.25 |
| $100 | Adult-use (>35% THC) | $7.25 | $3.00 | $3.00 | $3.00 | $25.00 (25%) | $41.25 | $141.25 |
| $100 | Adult-use (Infused) | $7.25 | $3.00 | $3.00 | $3.00 | $20.00 (20%) | $36.25 | $136.25 |
Other Illinois Cannabis Tax Resources
Cannabis Cultivation Privilege Tax
Statutory: (410 ILCS 705/60-1 et seq.)
Regulation: (86 Ill. Adm. Code Part 422)
Cannabis Purchaser Excise Tax
Statutory: (410 ILCS 705/65-1 et seq.)
Regulation: (86 Ill. Adm. Code Part 423)
County Cannabis Retailers' Occupation Tax
Statutory: (55 ILCS 5/5-1006.8)
Regulation: (86 Ill. Adm. Code Part 424)
Medical Cannabis Cultivation Privilege Tax
Statutory: (410 ILCS 130/1 et seq.)
Regulation: (86 Ill. Adm. Code Part 429)
Municipal Cannabis Retailers' Occupation Tax
Statutory: (65 ILCS 5/8-11-23)
Regulation: (86 Ill. Adm. Code Part 425)
Retailers' Occupation Tax
Statutory: (35 ILCS 120/1 et seq.)
Regulation: (86 Ill. Adm. Code Part 130)
Use Tax
Statutory: (35 ILCS 105/1 et seq.)
Regulation: (86 Ill. Adm. Code Part 150)
