01
What's the cannabis tax rate in Minnesota?
10% gross receipts tax on adult-use cannabis retail sales under MN Statute 295.81 (Cannabis Tax Act). The 10% rate replaces — not adds to — the standard 6.875% Minnesota state sales tax. (MN Stat 295.81)
MN Statute 297G — gross receipts cannabis tax
Cannabis Tax in Minnesota (2026)
Minnesota levies a 10% gross receipts tax on cannabis retail sales under MN Statute 297G / 295.81. The 10% rate replaces (not adds to) the 6.875% state sales tax. Local option sales tax may apply. Tribal retail under state-tribal compact follows compact tax structure.
Minnesota imposes a 10% gross receipts tax on cannabis retail sales under Minnesota Statute 297G (Cannabis Tax Act) — codified in part at MN Stat 295.81. The 10% rate replaces — not adds to — the standard 6.875% Minnesota state sales tax. Local option sales taxes (city or county) may apply on top, varying by jurisdiction. Tribal cannabis retail under state-tribal compact (Waabigwan Mashkiki and other tribal enterprises) follows compact-specific tax allocation; the customer-facing rate matches the actual sale. This guide explains how the cannabis tax works, who collects it, and how the customer-facing receipt should display it.
- Cannabis tax rate
- 10%
- Replaces state sales tax
- 6.875%
- Statute
- MN Stat 295.81 / 297G
- Remitted to
- MN Dept of Revenue
10% gross receipts rate
Minnesota Statute 295.81 (Cannabis Tax) imposes a 10% tax on the gross receipts of retail sales of cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products. 'Gross receipts' means the total amount received for the sale before any sales tax.
- Cannabis tax rate
- 10%
- Applies to
- Gross receipts
- Replaces
- 6.875% state sales tax
“A tax of 10 percent of the gross receipts on retail sales is imposed on a retail sale of cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products by a person required to be licensed under chapter 342.”
Tax replacement, not addition
Cannabis retail sales are exempt from the standard 6.875% Minnesota state sales tax. The 10% gross receipts tax stands in place of state sales tax — not in addition to. This is a structurally important distinction: a $100 cannabis purchase is taxed at $10 (10% total), not $16.875 (10% + 6.875% combined).
Local option sales taxes
Minnesota cities and counties may impose local option sales taxes on top of the 10% cannabis tax. These vary by jurisdiction — for example, Saint Cloud, Moorhead, and other municipalities may have local addons. Customer-facing receipts will itemize the local option tax separately when applicable. Tribal cannabis retail under state-tribal compact (Waabigwan Mashkiki) follows compact-specific tax structure that may include tribal-state revenue allocation; the customer-facing rate matches the actual sale.
Who collects + remits the tax
Licensed Minnesota cannabis retailers — MN OCM-licensed and state-tribal-compact tribal enterprises — collect the cannabis tax at point of sale and remit to the Minnesota Department of Revenue. The Minnesota Department of Revenue publishes guidance and forms at revenue.state.mn.us. Tribal cannabis tax under compact may have a different remittance pathway per the specific compact terms.
- Collector: licensed cannabis retailer
- Remitted to: Minnesota Department of Revenue
- Tribal compact retailers: per compact terms
Customer-facing receipt display
Customer receipts at a licensed Minnesota cannabis retailer will display the cannabis tax separately from the pre-tax subtotal. Example: $100 flower subtotal + $10 cannabis tax = $110 total. If a local option sales tax applies, it appears as an additional line item.
Tax-exempt categories
Medical cannabis sold under the Minnesota Medical Cannabis Program is exempt from the 10% gross receipts cannabis tax. Hemp-derived products that fall under the 'lower-potency hemp edibles' definition are subject to the same 10% tax as adult-use cannabis retail.
Frequently asked
02
Is cannabis subject to the 6.875% Minnesota sales tax?
No. Cannabis retail sales are exempt from the 6.875% MN state sales tax. The 10% gross receipts cannabis tax replaces it. A $100 cannabis purchase is taxed at $10 total, not $16.875.
03
Do local cities or counties add cannabis tax?
Some Minnesota cities and counties impose local option sales tax on top of the 10% cannabis tax. Local rates vary by jurisdiction. Receipts itemize local option tax separately when applicable.
04
Does Waabigwan Mashkiki charge the same 10% cannabis tax?
Tribal cannabis retail under state-tribal compact follows compact-specific tax structure that may include tribal-state revenue allocation. The customer-facing rate at Waabigwan Mashkiki matches the actual sale and is itemized on the receipt. (MN Tribal-State Cannabis Compact)
05
Is medical cannabis taxed differently?
Yes. Medical cannabis sold under the Minnesota Medical Cannabis Program is exempt from the 10% gross receipts cannabis tax.
06
How is the cannabis tax collected and remitted?
Licensed cannabis retailers collect the tax at point of sale and remit to the Minnesota Department of Revenue. Forms and guidance are at revenue.state.mn.us. Tribal-compact retailers follow compact-specific remittance. (Minnesota Department of Revenue)
07
What about hemp-derived products?
Hemp-derived 'lower-potency edibles' fall under the same 10% gross receipts tax as adult-use cannabis retail under MN Stat 295.81. (MN Stat 295.81)