| State | Tax Type | Tax Rate | Note |
|---|---|---|---|
| Alabama | Sales Tax | 4.0% | No license required to sell hemp in Alabama |
| Arizona | Privilege Tax | 5.6% | You do not need a license issued by the Department if you are selling, manufacturing, or marketing any post-processed hemp materials. |
| Arkansas | Sales & Use Tax | 6.5% | 2022 Hemp Processor/Handler Application |
| California | CBD products made from industrial hemp are subject to California sales and use tax. | 7.25% | You must apply for and maintain an IHEO Authorization issued by CDPH to manufacture, pack, or hold IH products in California. |
| Colorado | State Sales & Use Tax | 2.9% | Industrial Hemp farmers are not required to be licensed to sell hemp products they produce. |
| Connecticut | State Sales & Use Tax | 6.35% | Under Connecticut law, a person does not need a license to sell low THC hemp-derived CBD products at retail, as long as the person is not processing or manufacturing hemp into CBD. |
| Florida | State Sales & Use Tax | 6% | Any establishment that manufactures, processes, packs, holds, prepares or sells hemp extract intended for human consumption is considered a hemp food establishment and is required to have a food establishment permit from the Division of Food Safety to operate in Florida. |
| Georgia | State Sales & Use Tax | 4% | Require a hemp processor license. |
| Idaho | States Sales & Use Tax | 6% | A producer license or handling license required. |
| Illinois | State Sales & Use Tax | 6.25% | You need a license from the Indiana Board Of Pharmacy to sell CBD products. |
| Indiana | State Sales & Use Tax | 7% | A license to grow hemp is required. |
| Iowa | State Sales & Use Tax | 6% | It is legal to process, manufacture and sell for retail consumable hemp for human consumption. Farmers must have a license from the Iowa Department of Agriculture and Land Stewardship to grow hemp. |
| Kansas | State Sales & Use Tax | 6.50% | License required to produce or cultivate hemp. |
| Kentucky | State Sales & Use Tax | 6% | License required. |
| Louisiana | An excise tax upon each retail sale of industrial hemp-derived CBD consumable hemp products within the state | 3% | All persons, corporations shall be required to complete an application and obtain a permit before selling or engaging in business of selling any products containing CBD produced from hemp. |
| Sales & Use Tax | 4.45% | ||
| Massachusetts | State Sales & Use Tax | 6.25% | License Not required. |
| Maryland | State Sales & Use Tax | 6% | Licensed required by growers and processors. |
| Maine | State Sales & Use Tax | 5.50% | Need to register with the department of Agriculture, Conservation, and Forestry (DACF). |
| Michigan | State Sales & Use Tax | 6% | Processor handler license. |
| Minnesota | State Sales & Use Tax | 6.88% | License not required. |
| Missouri | State Sales & Use Tax | 4.23% | License required. |
| Mississippi | N/A | N/A | Producers need to obtain a hemp license from the U.S. Department of Agriculture (USDA) under the USDA Domestic Hemp Production Program |
| New Jersey | State Sales & Use Tax | 6.625% | |
| Nevada | State Sales & Use Tax | 4.60% | License Required. |
| New Mexico | State Sales & Use Tax | License Required | |
| New York | State Sales & Use Tax | 4% | Licensed Required. |
| North Carolina | State Sales & Use Tax | 4.75% | Hemp processor license required however, selling hemp or hemp products does not require a license. |
| North Dakota | State Sales & Use Tax | 5% | A person growing or processing hemp requires a license. |
| Pennsylvania | State Sales & Use Tax | 6% | License not required. |
| Oklahoma | State Sales & Use Tax | 4.5% | License Required. |
| Oregon | No license required to sell hemp products. However, other kinds of license may be required depending on type of product you sell. | ||
| Rhode Island | State Sales & Use Tax | 7% |
If sold in cigarette/RYO form, taxed as cigarette |
| South Carolina | State Sales & Use Tax | 6% | License not required. |
| South Dakota | State Sales & Use Tax | 4.5% | License not required. |
| Tennessee | State Sales & Use Tax | 7% | License not required. |
| If hemp cigarettes or herbal cigarettes contain any tobacco, those products are subject to the tobacco tax. | |||
| Texas | State Sales & Use Tax | 6.25% | Licensed required. |
| Utah | State Sales & Use Tax | 4.85% | Cultivators, processors, or sellers of hemp products must be licensed by the Utah Department of Agriculture and Food. |
| Virginia | State Sales & Use Tax | 5.3% | License not required. |
| Vermont | State Sales & Use Tax | 6% | Vermont hemp growers and handlers must be registered and licensed with the state. |
| Washington | State Sales & Use Tax | 6.5% | Need a license from the Washington State Liquor Control Board |
| Business & Occupation Tax | 0.471% of your gross receipts. | ||
| West Virginia | State Sales & Use Tax | 6% | License not required |
| Wisconsin | State Sales & Use Tax | 5% | Sellers permit from state department of revenue |
| Wyoming | State Sales & Use Tax | 4% | Need to apply for a Hemp Extract Registration Card |