Alabama Marijuana Tax Revenue 2026
- Alabama Cannabis
- Cannabis Business in Alabama
- Alabama Marijuana Tax Revenue
Alabama Medical Cannabis Taxes
Medical cannabis purchases in Alabama are subject to a special state medical cannabis tax instead of the normal state sales tax, plus any applicable local city or county sales taxes.
Medical Cannabis Taxes
State Medical Cannabis Tax: Retail medical cannabis sales are subject to a 9% state medical cannabis gross proceeds tax, administered by the Alabama Department of Revenue. This replaces Alabama’s standard 4% state sales tax on medical cannabis.
Local City/County Sales Taxes: In addition to the 9% state medical cannabis tax, local sales taxes may still apply depending on where the dispensary is located. These local rates vary by city and county.
Sample Medical Cannabis Purchases in Alabama (Jefferson County)
| Purchase Amount | Type of Customer | State Medical Cannabis Tax (9%) | Local City/County Sales Tax (~6%) | Total Taxes Paid | Total Cost |
|---|---|---|---|---|---|
| $100 | Medical | $9.00 | ~$6.00 | ~$15.00 | $115.00 |
