North Dakota Marijuana Tax Revenue 2025

What is the Tax Rate for Marijuana in North Dakota?

Marijuana businesses in North Dakota are subject to state sales tax. Here are some key points regarding the taxation:

• Tax Rate: Medical marijuana is subject to a 5% state sales tax, consistent with the rate applied to most retail sales.

While prescription drugs are typically exempt from sales tax, this exemption does not apply to medical marijuana. As a result, all purchases of medical marijuana, even when prescribed, incur the standard sales tax. In contrast, medicines bought without a prescription are also taxed at the same 5% rate. This classification of medical marijuana as a taxable item aligns it with other non-exempt retail goods in North Dakota.

Source: North Dakota Office of State Tax Commissioner