How Much is the Tax on Marijuana in Arizona?
Updated: Mar 30, 2023
In Arizona, Marijuana is taxed differently depending on if it is Medical Marijuana or Recreational Marijuana. In this post we will break down the taxes for you as well as explain if it makes financial sense for you to have a Medical Marijuana Card.
Medical Marijuana
To purchase medical marijuana, the only tax a patient must pay is sales tax. Sales tax includes state, county, and city tax and varies by jurisdiction. This is the tax you typically pay on goods and products that you buy in stores. In Chandler, for example, the sales tax is 7.8%.
Recreational Marijuana
To purchase Recreational Marijuana, an individual must pay sales tax and an excise tax of 16%. In Chandler, for example, an individual would pay 23.8% tax on Recreational Marijuana. So for $50 of product, that is an additional $11.90.
So what does this additional tax go towards? The excise tax is distributed first to pay for DHS services to administer the marijuana program. Remaining funds will mostly go towards community colleges.
Cost Breakdown
The current cost of a Medical Marijuana Card at our clinic can be found here. The cost of a Medical Marijuana Card is composed of 2-3 fees. The fee to the state of Arizona ($150 every 2 years, discounted for SNAP recipients), the fee for the appointment with a doctor to receive your recommendation ($100 at our office), and the physical exam fee, if needed ($25 at our office).
Assuming you pay $250 - $275 every 2 years to have a medical marijuana card, if you purchase and average of $75 worth of product a month, the card pays for itself in tax savings. We will now break down the math.
$75/month = $1,800/2 years
16% EXTRA tax on $1,800 = $288
Current cost of Medical Marijuana Card at Green Leaf = $250-$275
As you can see from the math above, the card pays for itself. The financial savings is one of the top reasons to continue to have your medical marijuana card now that recreational marijuana is legal. To see other reasons, please visit our post on 5 Reasons You Should Still Get a Medical Marijuana Card Now that Arizona Legalized Marijuana.
How to Get a Medical Marijuana Card
To learn about the process to obtain your medical card, please go to our page How To Get Medical Card in Arizona. To learn about Qualifying Conditions recognized by the state of Arizona, go Here. If you are ready to obtain your Medical Marijuana Card, please call our office at 480-656-1098 or Book Online.
