It should be recognized that New Jersey has a clear tax structure for recreational cannabis. It simply combines both state-level sales tax and a special excise fee. These rates have a fundamental importance for dispensary owners and cultivators as well as consumers in order to establish fully compliant status with state rules and local obligations.
NJ Cannabis Taxes
| Tax Type | Rate / Amount | Description |
| State Sales Tax | 6.625% | Applied to recreational cannabis at the point of sale. |
| Cannabis Excise Tax (SEEF) | $2.50 per ounce | Paid by cultivators in order to support social programs. |
| Local Transfer Tax | Up to 2% | Imposed by municipalities on specific cannabis business activities like retail sales or cultivation transfers. |
It should be noted that Medical cannabis remains completely tax-exempt and presents patients with affordable access without additional fees.
Who Pays Each Tax?
| Tax Type | Who Pays | Details |
| State Sales Tax (6.625%) | Consumers | Applied at the point of sale for recreational cannabis purchases. |
| Cannabis Excise Tax (SEEF – $2.50 per ounce) | Cultivators | Paid directly to the state and included in wholesale pricing, not a percentage of sales. |
| Local Transfer Tax (up to 2%) | Cannabis Businesses | Managed by dispensaries or other operators in municipalities that impose this tax. |
Full Compliance
Dispensary owners should perform the below actions in order to prevent compliance issues:
- Register with the New Jersey Division of Taxation and file Form ST-50 quarterly.
- Establish precise records of sales and invoices for reporting.
- Monitor updates on proposed changes. For example: Governor Murphy’s 2025 plan to increase the SEEF to $15 per ounce.
The NJ cannabis tax rate should be taken into consideration by businesses in order to prevent penalty payments and make sure of smooth operations. No matter if you’re running a dispensary or growing cannabis, professional support from a cannabis business CPA NJ can streamline compliance practices. If you require expert assistance, reach out to our dedicated team at Dimov Tax.