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How Medical Marijuana is Taxed in Illinois


 Medicine.

Last summer, Illinois Governor Pat Quinn Illinois Department of Revenue amended several regulations to account for it.

Medical cannabis and cannabis infused products sold by a registered dispensing organization are considered prescription and nonprescription medicines and drugs in Illinois and are subject to the following:

On the other hand, paraphernalia associated with medical marijuana is subject to the general sales and use tax rate of 6.25%.

The department notes that medical marijuana is also subject to the following:

  • The Metro East Mass Transit District Retailers’ Occupation Tax (as provided in 70 ILCS 3610.5.01)
  • The Regional Transportation Authority Retailers’ Occupation Tax (taxed at the rate established for prescription and nonprescription medicines in Cook County and at the rate established for general merchandise in all other areas of the metropolitan region that are subject to the tax as provided in 70 ILCS 3615/4.03).

The amended regulations are 86 Ill. Adm. Code §§ 130.311, 130.745, and 130.801.

Cultivation

The privilege of cultivating medical marijuana in Illinois is also taxed, at a rate of 7% of the sales price per ounce. Learn more about the Medical Cannabis Cultivation Privilege Tax.

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photo credit: prensa420 via photopin cc


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.