Acknowledging the cannabis sales tax New Jersey rules have a significant importance for both consumers and dispensary owners. It is true that recreational cannabis is taxed differently than medical cannabis. In addition, there are separate fees that apply at distinct stages of the cannabis supply chain.
Current NJ Cannabis Tax Rates
We present a quick breakdown of what you can expect to pay or collect:
| Tax Type | Rate / Amount | Who Pays | Notes |
| Sales Tax on Recreational Cannabis | 6.625% | Consumers | Added at the point of sale on recreational cannabis purchases. |
| Medical Cannabis | 0% (Tax-Exempt) | Consumers | No sales tax or excise fees apply. |
| Cannabis Excise Tax NJ (SEEF) | $2.50 per ounce | Cultivators | Paid monthly; not charged directly to consumers. |
| Local Transfer Tax | Up to 2% | Cannabis businesses | Set by municipalities on specific cannabis activities. |
Example: If a consumer buys $100 worth of recreational cannabis, they will pay an additional $6.63 in state sales tax. Moreover, any local tax if applicable.
Who Pays These Taxes
- Consumers: Responsible for the 6.625% sales tax at checkout.
- Cultivators: Pay the Social Equity Excise Fee (SEEF).
- Dispensaries: Collect sales tax and submit relevant payments through Form ST-50 to the New Jersey Division of Taxation.
The Reason Behind These Taxes
Funds generated through these taxes are used to:
- Support programs with social focus especially for communities impacted by past cannabis laws.
- Contribute to local government services, covering public infrastructure and law enforcement.
- Grow state revenue through general fund contributions.
Stay Fully Compliant with Professional Help
Dispensaries should stay current with evolving NJ marijuana tax compliance rules. Working with a cannabis business CPA NJ like Dimov Tax can simplify New Jersey cannabis tax reporting and make sure of precise. If you need professional support, reach out to our dedicated team in order to prevent costly penalty payments.