CBD sales tax by state falls into three patterns: most states apply their ordinary sales tax to hemp-derived CBD the same way they tax vitamins or lotion, five states charge no statewide sales tax at all, and a smaller group layers a hemp-specific excise tax on top that can push the total past 17 percent at the register. Because the federal government imposes no national sales tax, every dollar you pay in tax on a CBD purchase is set by state and, often, local governments.1Cornell Law Institute. Sales Tax The 2018 Farm Bill made hemp-derived CBD federally legal when delta-9 THC stays below 0.3 percent on a dry weight basis, which is what opened the door for states to treat it as a normal retail product.2Food and Drug Administration. Hemp Production and the 2018 Farm Bill
States That Apply Their Standard Sales Tax
In most of the country, CBD is taxed at the same rate as any other retail item. Forty-five states levy a statewide sales tax, with rates running from roughly 2.9 percent up to 7.25 percent before local additions. Florida’s statewide rate is 6 percent, and most counties add a discretionary surtax on top of that.3Florida Department of Revenue. Florida Sales and Use Tax Texas starts at 6.25 percent statewide with up to 2 percent in local add-ons. California begins at 7.25 percent, and city and county surtaxes push the total higher in many places.
Local variation matters more than most buyers notice. The same tincture bought in an unincorporated rural county might carry only the state rate, while the identical bottle bought downtown in a big city can cost several percentage points more once city and county surtaxes are added. Tax follows the point of sale, so two stores across a city line can charge you different amounts for the same product.
States That Add a Hemp Excise Tax
A growing number of states have decided hemp-derived cannabinoids deserve their own targeted tax on top of the ordinary sales tax. These are the states where your total tax bill gets noticeably larger.
Tennessee
Tennessee imposes a 6 percent privilege tax on retail sales of products containing a hemp-derived cannabinoid under Tennessee Code ยง 67-6-232.4Justia. Tennessee Code 67-6-232 – Tax Levy for Hemp-Derived Cannabinoid Products That tax stacks on top of the state’s 7 percent standard sales tax. A $50 CBD purchase in Tennessee carries both, for an effective rate of 13 percent before any local additions.
A separate wholesale tax took effect January 1, 2026 under Public Chapter 526. The wholesale rates are $0.02 per milligram of cannabinoid content, $50 per ounce for hemp flower, and $4.40 per gallon for liquid products.5Tennessee Department of Revenue. Notice 25-11 – Taxability of Hemp-Derived Cannabinoid Products That cost gets built into the shelf price before the retail privilege tax and sales tax are calculated, which puts Tennessee’s total tax burden on CBD among the highest in the country.
West Virginia
West Virginia charges an 11 percent tax on the retail sales price of hemp-derived cannabinoid products, in addition to all other applicable taxes.6West Virginia State Tax Department. Hemp-derived Cannabinoid or Kratom (HKT) Tax Frequently Asked Questions Combined with West Virginia’s 6 percent general sales tax, a buyer can face a 17 percent total rate. The same tax applies to kratom products.
Other States Moving in the Same Direction
Connecticut charges a per-milligram tax on THC content in edible cannabis products, and several other legislatures are actively looking at hemp excise taxes, particularly for delta-8 and delta-9 THC products sold under the hemp umbrella. This part of the map is changing quickly, so a rate that was accurate last year may not be accurate now. Check your state’s revenue department page before assuming what you’ll pay.
States With No Sales Tax on CBD
Five states impose no statewide sales tax on any retail purchase, and CBD is no exception: New Hampshire, Oregon, Montana, Delaware, and Alaska.1Cornell Law Institute. Sales Tax The sticker price is the total price. Alaska is a partial exception within the exception: while the state itself collects no sales tax, some local jurisdictions do, so a CBD product bought in certain Alaskan boroughs may still carry a local charge.
Buying from a retailer in a no-sales-tax state does not permanently keep you tax-free. If you order online and live somewhere that does charge sales tax, the seller usually has to collect your state’s tax once its sales into your state cross a threshold. That is covered next.
Medical CBD Tax Exemptions
Some states remove sales or excise tax when the buyer holds valid medical documentation, but the requirements are strict. In Washington State, registered medical patients are exempt from the state’s cannabis excise tax only if they appear in the Department of Health registry and present a valid registration card at the point of sale.7Washington State Liquor and Cannabis Board. Cannabis Excise Tax Exemption for Medical Patients Telling a cashier you use CBD for a health condition does not qualify you. The exemption depends on paperwork the retailer can verify and store for a later audit, which is why many stores will not remove the tax without the card in hand.
Tax on Online CBD Purchases
Where you live drives the tax on a mail-order CBD purchase, not where the seller sits. The Supreme Court’s 2018 decision in South Dakota v. Wayfair ended the old rule that a state could only require tax collection from sellers with a physical presence inside its borders.8Supreme Court of the United States. South Dakota v. Wayfair, Inc. After Wayfair, states can require out-of-state sellers to collect their sales tax once the seller crosses an economic threshold.
Most states set that threshold at $100,000 in annual sales revenue into the state, or 200 or more separate transactions with residents of that state. A growing number of states have dropped the transaction count and now use only the revenue test. Once a seller crosses the line, it registers in that state and charges tax on every future order shipped there.
The rate charged is the rate for your shipping address, not the seller’s. An online CBD company based in Oregon, which has no sales tax, still has to collect Tennessee’s 7 percent sales tax and its 6 percent hemp privilege tax on orders sent to Tennessee buyers. That is why an out-of-state website may charge you the same total tax you would pay at a local shop.
What Changes on November 12, 2026
A federal law signed in November 2025, P.L. 119-37, rewrites the legal definition of hemp itself, and the new definition takes effect November 12, 2026.9Congressional Research Service. Change to Federal Definition of Hemp and Implications for Federal Law Three changes will reshape which products qualify for hemp tax treatment. The THC limit will apply to total THC concentration rather than just delta-9 THC, which trips up many full-spectrum products that passed the old test. Final hemp-derived cannabinoid products are capped at 0.4 milligrams of THC per container, a very low threshold that effectively removes most intoxicating hemp items from legal sale. And any cannabinoid synthesized or manufactured outside the plant is excluded, which targets products such as delta-8 THC that are typically converted from CBD in a laboratory.
For a buyer, the tax question after November 2026 becomes secondary for many products currently on shelves: a product that no longer qualifies as hemp under federal law can’t legally be sold as hemp, and state excise taxes written around “hemp-derived cannabinoid products” would no longer reach it. The FDA is required to publish lists of naturally occurring cannabinoids and THC-class cannabinoids within 90 days of the law’s enactment to clarify where the boundary sits. If you buy products such as delta-8 gummies or high-milligram full-spectrum tinctures, expect the shelf and the tax rules around it to look different by late 2026.
One Federal Boundary Worth Knowing
Paying state sales tax on a CBD product does not make the product federally compliant in every respect. The FDA still considers it a violation of federal food and drug law to sell CBD as a dietary supplement or as an added ingredient in food, even though enforcement has been limited in practice.10Food and Drug Administration. FDA Regulation of Cannabis and Cannabis-Derived Products, Including Cannabidiol (CBD) The tax you pay at checkout reflects a state decision to treat CBD as taxable retail, not a federal endorsement of every product on the shelf.