Florida’s medical marijuana program has been active for several years, but unlike many states with legalized recreational cannabis, Florida has not yet introduced a specific Florida cannabis excise tax. While there is currently no excise tax on medical cannabis, Florida’s existing excise tax policies on other goods—such as alcohol, tobacco, and certain vehicle transactions—offer a clear preview of how cannabis might be taxed in the future.
This guide covers five main areas to help you understand where things stand now, what might change, and how it compares to other excise taxes in Florida.
Does Florida Have Excise Tax?
The first question many people ask is does Florida have excise tax at all. The answer is yes—Florida imposes excise taxes on several categories:
- Alcohol – The Florida excise tax alcohol is charged per gallon, with different rates for beer, wine, and spirits.
- Tobacco Products – Cigarettes, cigars, and other tobacco items are subject to per-unit excise taxes.
- Fuel – Gasoline and diesel are taxed per gallon.
- Certain Vehicle Transactions – While not always labeled as such, some title, registration, and “use tax” fees function like a Florida excise tax vehicles system.
However, there is currently no Florida excise tax on cannabis because recreational marijuana is not legal as of 2025. Medical cannabis purchased by qualified patients is also exempt from sales and excise taxes.
Excise Taxes on Vehicles in Florida
A common point of confusion is whether there is a Florida excise tax on cars or a Florida vehicle excise tax similar to states like Massachusetts or Washington. Technically, is there an excise tax on cars in Florida? The answer is no—there is no recurring annual vehicle excise tax.
Instead, Florida has:
- Title & Registration Fees – Required when you purchase or bring a vehicle into the state.
- Initial Registration Fee – A $225 fee for first-time registrations.
- Use Tax – Collected when a vehicle purchased out of state is brought into Florida.
While these are not traditional excise taxes, they share the same principle: a targeted tax or fee applied to a specific product or transaction. This is why some residents informally refer to them as Florida excise tax on cars or Florida excise tax vehicles.
Understanding how Florida handles vehicle-related fees is important because it shows the state’s preference for flat or percentage-based charges that are simple to administer—an approach that could also be applied to cannabis in the future.
What a Florida Cannabis Excise Tax Could Look Like
If recreational cannabis is legalized, a Florida excise tax could be introduced in one of several formats:
- Retail Percentage – A set percentage of the retail price, much like how other states handle cannabis excise taxes.
- Weight-Based Tax – A per-ounce or per-gram rate, regardless of price.
- Potency-Based Tax – A charge based on THC content, with higher-potency products taxed more.
- Hybrid Model – Combining weight or potency charges with a retail percentage.
Given Florida’s approach to alcohol, the most likely structure is a retail percentage model, similar to the Florida excise tax alcohol system, where the tax is applied at the wholesale or retail stage and passed along to the consumer.
In a high-tourism state, this could mean substantial revenue, especially if combined with existing sales tax. For example, a 15% cannabis excise tax on top of standard sales tax could push total effective tax rates close to 20% in some areas.
Economic and Regulatory Impact
The introduction of a Florida excise tax on cannabis would have major economic and regulatory implications:
- Revenue Potential – Florida could generate hundreds of millions annually from cannabis taxes, similar to the revenue from alcohol and tobacco excise taxes.
- Tourism Boost – Visitors could significantly contribute to tax revenue, especially in regions like Miami-Dade and Orlando.
- Regulatory Oversight – Excise taxes would likely be collected at the distributor or retailer level, requiring strict compliance measures similar to those for alcohol.
- Price Impact – Just as vehicle registration fees or Florida excise tax vehicles charges increase the cost of ownership, a cannabis excise tax would raise retail cannabis prices, potentially affecting demand.
Preparing for Possible Cannabis Excise Taxation
While medical marijuana remains exempt from excise tax today, future legalization of recreational cannabis could change the tax landscape rapidly. Businesses, investors, and consumers can prepare by:
- Monitoring Legislation – Keeping an eye on bills and ballot measures.
- Learning from Other States – Understanding how different excise tax models impact pricing and compliance.
- Budgeting for Higher Costs – If you’re a potential cannabis business owner, factor in both sales tax and possible excise taxes when setting prices.
- Understanding Existing Tax Systems – Familiarity with how Florida handles Florida excise tax alcohol and vehicle fees will help anticipate how a cannabis tax might be administered.
Final Thoughts
There is currently no Florida excise tax on cannabis in 2025 because recreational marijuana is not legal. However, Florida’s established excise tax systems for alcohol, tobacco, fuel, and certain vehicle-related transactions offer clear guidance on what a future cannabis excise tax might look like.
Whether structured as a retail percentage, weight-based fee, or potency-based charge, a cannabis excise tax would add a significant cost to legal cannabis products and generate substantial revenue for the state. Until then, the question is there excise tax in Florida has a clear answer—yes, but not yet for cannabis.
If you want to be ready for a future Florida cannabis excise tax—before the rules even hit the books—reach out to Dimov Tax to model potential costs, plan your pricing, and build a compliance strategy that can scale with legalization.