How the tax works
Arizona charges 16% marijuana excise on an adult-use retail sale. A retailer also owes state, county and city transaction privilege tax for the marijuana business category, which it may pass through to the buyer. Qualifying medical marijuana sales have the transaction tax but not the 16% adult-use excise. The excise is removed from the transaction-tax receipts, so this estimate calculates both on the same discounted pretax selling price. On $100, the 5.6% state transaction-tax portion gives an adult-use minimum of $121.60 or a medical minimum of $105.60; county and city amounts may add more.
Use the Arizona DOR rate lookup for the purchase date and store location, with marijuana business code 420 for adult-use or 203 for medical. Enter the full state, county and city transaction rate. A generic retail rate may be different. No city preset is offered because a current cannabis-specific combined location rate was not verified. This tool estimates a separately passed-through transaction tax; confirm the store receipt.
Use a pretax retail price after discounts, excluding separately stated taxes. Tax-inclusive advertised prices must be converted to a pretax price first. Store fees, delivery charges and receipt rounding can change the amount owed; this estimate does not resolve their tax treatment.
Sources and limits
- Arizona DOR: adult-use marijuana tax FAQ
- Arizona DOR: marijuana filing and excise deduction
- Arizona DOR: state 5.6% transaction tax
- Arizona DOR: current monthly rate tables
Rates and eligibility can change. Check the official sources, your transaction type and location before relying on a checkout estimate. This is general information, not tax or legal advice.