OTCOTC Help Center — Medical Marijuana Tax
7% medical marijuana tax on gross receipts
TaxesLast verified Nov 7, 2026
The medical marijuana tax is 7% of the total gross receipts from medical marijuana sales, reported on the medical marijuana return. Sales tax is reported separately on the sales tax return, based on the store's location. 100% disabled veterans are exempt from sales tax but not from the 7% medical marijuana tax.
Why it matters
Two separate returns: the 7% tax and local sales tax are filed and calculated differently.
Applies to Grower/Processor/Dispensary/Transporter/Lab
Connected rules
- Dispensaries need an OTC sales/medical marijuana tax permit — Permit needed to file
- Retail excise tax — OMMA tax rule
Sources