How cannabis tax revenue is divided in New Jersey is fundamental for dispensary owners in addition to cannabis business operators. With the growth of the recreational market, recognizing where the money goes can be a helping hand for establishments in the scope of NJ marijuana tax compliance as well as community funding efforts.
Revenue Streams
New Jersey collects cannabis-related revenue simply through three main sources:
| Revenue Source | Rate / Amount | Who Pays | Purpose / Notes |
| State Sales Tax | 6.625% | Consumers | Applied to all retail sales of recreational cannabis. Revenue flows into the state’s general fund, similar to other retail taxes. |
| Cannabis Excise Tax (SEEF) | $2.50 per ounce of usable cannabis (2025 rate) | Cultivators | Paid monthly by cultivators via Form SF-100. Funds are earmarked for social programs. |
| Municipal Transfer Tax | Up to 2% (up to 1% for wholesalers) | Cannabis businesses | Optional local tax set by municipalities. Revenue remains within the municipality to support public services as well as infrastructure in addition to other local programs. |
Recent Revenue Figures
In 2024, New Jersey generated over $64.5 million in cannabis tax revenue:
- $61 million from retail sales tax
- $3.48 million from the SEEF
- Municipal taxes are reported separately and vary by location.
The abovementioned figures highlight how the cannabis sales tax New Jersey contributes both to state operations and to programs custom-designed to focus on communities most impacted by past cannabis policies.
Final Note for Businesses
For dispensaries and cultivators, acknowledging the mentioned taxation streams is important for smart tax planning practices and full compliance with the legislations. Partnering with a cannabis business CPA NJ or leveraging a trusted cannabis tax filing service can be helpful in terms of:
- Precise reporting of state and local taxes
- On-time payments as per specific deadlines
- Professional documentation for audits and smart-financial planning
As the market expands and proposals to raise the NJ cannabis tax rate are considered, new updates would aid establishments adapt easily and proceed to satisfy dispensary tax requirements NJ. If you are unsure about your distinct tax obligations, contact Dimov Tax for full cannabis tax compliance.