Minnesota levies a 15% gross receipts tax on cannabis retail sales under MN Statute 295.81 (raised from 10% on July 1, 2025). The 15% tax is in addition to the 6.875% state sales tax, plus any applicable local sales taxes. Tribal retail under state-tribal compact follows compact tax structure.
Minnesota imposes a 15% gross receipts tax on cannabis retail sales under Minnesota Statute 295.81 (Cannabis Tax Act), raised from 10% effective July 1, 2025. The 15% tax applies in addition to — not in place of — the standard 6.875% Minnesota state sales tax. Local option sales taxes (city or county) may also 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.
Minnesota Statute 295.81 (Cannabis Tax) imposes a 15% tax on the gross receipts of retail sales of cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products (raised from 10% effective July 1, 2025). 'Gross receipts' means the total amount received for the sale before any sales tax.
“A tax of 15 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.”
Cannabis retail sales are subject to the 15% cannabis gross receipts tax AND the standard 6.875% Minnesota state general sales tax — the cannabis tax is in addition to sales tax, not in place of it. Local option sales taxes may also apply on top. This is a structurally important distinction: a $100 cannabis subtotal is taxed roughly $21.88 before any local tax ($15 cannabis tax + $6.88 state sales tax), not $15 alone.
Minnesota cities and counties may impose local option sales taxes on top of the 15% 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.
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.
Customer receipts at a licensed Minnesota cannabis retailer will display the cannabis tax separately from the pre-tax subtotal. Example: $100 flower subtotal + $15 cannabis tax + $6.88 state sales tax = $121.88 total. If a local option sales tax applies, it appears as an additional line item.
Medical cannabis sold under the Minnesota Medical Cannabis Program is exempt from the 15% gross receipts cannabis tax. Hemp-derived products that fall under the 'lower-potency hemp edibles' definition are subject to the same 15% tax as adult-use cannabis retail.