Minnesota Cannabis Tax going up

June 18, 2025

Cannabis

ST. PAUL, Minn. – Cannabis Taxes in Minnesota are on the rise.

They’re sitting at 10-percent now, but will go up to 15-percent on July 1, 2025.

The 10-percent rate was from July 1. 2023 to June 30. 2025.

All sales and purchases of taxable cannabis products are subject to the new tax rate.

RELATED: Minnesota issues first cannabis business license

Retail sales of the following products are subject to the Cannabis Tax:

  • Cannabis-derived products
    • Flower – harvested flower, bud, leaves, and stems of the cannabis plant
    • Concentrate and products containing cannabis concentrate
    • Products infused with cannabinoids, including THC
  • Hemp-derived products
    • Items intended for human or animal consumption that contain either:
      • Hemp plant parts
      • Hemp concentrate or artificially derived cannabinoids in combination with other ingredients
    • Lower-potency hemp edibles – THC products intended to be eaten or consumed as a beverage by humans, containing hemp concentrate or artificially derived cannabinoids
  • Vaping solution products that contain cannabis or hemp-derived products
  • Substantially similar products
    • Any product that is substantially similar to vaping solution products, cannabis-derived products, and hemp-derived products is also subject to Cannabis Tax

Those taxes are special cannabis taxes.

Cannabis products are also subject to both the the 6.875% state general rate sales tax along with any applicable local sales taxes based on where the transaction takes place.