Florida’s cannabis industry is operating in a unique tax environment compared to many other states. As of 2025, only medical marijuana is legal, which means tax obligations differ significantly from states with recreational cannabis markets. For patients, business owners, and investors, understanding cannabis sales tax Florida rules and broader Florida cannabis company taxes is essential for compliance and strategic planning.
This guide covers how the Florida cannabis tax system works today, the tax obligations for cannabis companies, and what to expect if recreational cannabis becomes legal in the future.
Current Cannabis Tax Structure in Florida
Unlike states such as California or Colorado, Florida does not impose a dedicated Florida cannabis tax on medical marijuana sales. Under state law, cannabis purchased by qualified medical marijuana patients from licensed Medical Marijuana Treatment Centers (MMTCs) is treated as prescription medicine, making it exempt from standard state sales tax.
This means that cannabis sales tax Florida for medical marijuana is effectively 0% for patients—no sales tax and no excise tax are applied. However, other products sold by dispensaries, such as branded merchandise, smoking accessories, and non-prescription CBD products, are taxable under normal state sales tax rules.
Cannabis Sales Tax in Florida
Since there is no recreational cannabis market yet, cannabis sales tax Florida only applies in limited situations. If recreational cannabis is legalized, it would almost certainly be subject to:
- State Sales Tax – Currently 6% at the state level.
- Local Discretionary Sales Surtax – Ranging from 0.5% to 2.5%, depending on the county.
- Potential Cannabis-Specific Excise Tax – A new tax lawmakers might introduce to generate revenue from adult-use sales.
For example, in a county with a 1% surtax, recreational cannabis could face a combined sales tax rate of 7% before adding any new cannabis-specific taxes. Other states with legal recreational markets often set excise taxes between 10% and 37% of the retail price, which could make Florida’s total rate quite high.
Florida Cannabis Company Taxes
While patients may not be paying sales tax on medical marijuana, licensed cannabis businesses are still responsible for several types of Florida cannabis company taxes. These include:
- Corporate Income Tax – Florida’s corporate income tax rate is currently 5.5%, though it has been temporarily reduced in certain years. Cannabis companies organized as C corporations are subject to this tax.
- Federal Income Tax (Section 280E) – Because cannabis is still federally illegal, Internal Revenue Code Section 280E prevents cannabis businesses from deducting most ordinary business expenses, significantly increasing their effective tax rate.
- Payroll Taxes – Employers must withhold and remit federal payroll taxes for employees.
- Property Taxes – Real estate owned by a cannabis business is subject to local property taxation.
- Sales Tax on Non-Exempt Items – If a dispensary sells taxable merchandise or accessories, it must collect and remit sales tax to the Florida Department of Revenue.
This means that even without a state cannabis excise tax, Florida cannabis company taxes can be substantial due to corporate, payroll, and federal restrictions under 280E.
Future Outlook for Florida Cannabis Tax Policy
If recreational cannabis becomes legal, the Florida cannabis tax framework will likely expand significantly. Based on trends in other states, possible changes could include:
- Cannabis Excise Tax – A flat percentage applied at the retail level, in addition to sales tax.
- Weight or Potency-Based Taxes – Charged per ounce or per milligram of THC, potentially leading to higher rates for concentrates and edibles.
- Special Local Taxes – Certain counties may introduce local cannabis business taxes to fund infrastructure, law enforcement, or community programs.
- Additional Licensing Fees – Higher application and renewal fees for cannabis businesses, functioning as a form of indirect taxation.
Florida could generate hundreds of millions annually from recreational cannabis taxes, given its large population and strong tourism market. This would make cannabis sales tax Florida a major source of new public revenue.
Compliance and Tax Planning for Cannabis Businesses
For cannabis entrepreneurs, managing taxes is one of the most critical aspects of running a compliant and profitable operation. Best practices for navigating Florida cannabis company taxes include:
- Separate Taxable and Non-Taxable Sales – Clearly distinguish between exempt medical marijuana sales and taxable merchandise.
- Plan for 280E Limitations – Structure operations to maximize cost of goods sold (COGS) deductions and reduce taxable income.
- Stay Updated on Law Changes – Monitor legislative developments related to Florida cannabis tax policy, especially proposals for recreational legalization.
- Use Accurate Accounting Systems – Implement cannabis-compliant POS and accounting software to track taxes by product type and jurisdiction.
- Work with Cannabis Tax Professionals – Partner with accountants and tax advisors experienced in cannabis compliance and IRS 280E strategies.
Final Thoughts
Right now, the Florida cannabis tax system is straightforward: medical marijuana is exempt from sales and excise taxes, and only taxable merchandise is subject to cannabis sales tax Florida. However, the situation will change dramatically if recreational cannabis is legalized, potentially adding sales tax, excise tax, and other business-specific taxes to the mix.
For cannabis entrepreneurs, understanding and preparing for Florida cannabis company taxes—from corporate income tax to federal 280E compliance—is essential for long-term success in this evolving industry. Whether you’re a patient, a business owner, or an investor, staying informed on Florida’s tax landscape will ensure you’re ready for the next phase of cannabis regulation in the Sunshine State.
If you’re launching, scaling, or investing in a Florida cannabis business and want a clear plan for 2025 taxes and beyond, reach out to Dimov Tax for tailored guidance on corporate tax, 280E strategy, and compliant sales tax setup.