We use cookies for certain features and to improve your experience. See our Cookie Policy and Privacy Policy to learn more

Leafly

Shop legal, local weed.

Open
advertise on Leafly
ShopDeliveryDispensariesDealsStrainsBrandsProductsCBDDoctorsCannabis 101Social impact
  • Sign in
  • Create account
  • Strains
  • Shop
  • Shop
  • Delivery
  • Deals
  • Dispensaries
  • CBD Stores
  • Brands
  • Products
  • Learn
  • Cannabis 101
  • News
  • Leafly Learn
  • Science of cannabis
  • Doctors
  • Social impact
  • Lab partners
  • Download the Leafly App
  • Advertise on Leafly
    • Leafly.comUSA flag
    • Leafly.caCanadian flag
    • Leafly.deGerman flag
  • Help
  • News
  • Lifestyle
  • Strains & products
  • Industry
  • Growing
  • Health
  • Science & tech
  • Leafly USA
  • Podcasts
  • Learn
Industry

Recreational Cannabis Sales Tax Coming Soon to Oregon

Lisa RoughPublished on December 31, 2015 · Last updated July 28, 2020

Oregon recreational consumers have been living the high life since October, enjoying easy access, no sales tax, and the best Oregon-grown cannabis they could ask for. Unfortunately, the harsh reality of recreational legalization is about to crack down on the green utopian landscape Oregonians have come to love in the form of a 25 percent tax increase.

Starting January 4th, 2016, all recreational purchases of marijuana will be taxed at 25 percent, increasing the cost significantly. On a small scale, it’s not so bad – a $10 gram will only jump up to $12.50. However, on a larger scale, the cost is a bit more jaw-dropping — for a $125 ounce, customers will end up shelling out over $30 in sales tax.

Before you Oregon cannabis lovers jump to the worst conclusion and swear off your new favorite dispensary, don’t forget that the revenue from these sales will be going to an excellent cause (and also provided a convincing argument for legalization to begin with). Recreational marijuana sales tax will be disbursed to the following programs after July 1, 2017:

  • 40 percent to the Common School Fund
  • 20 percent to mental health, alcoholism, and drug services
  • 15 percent to the Oregon State Police
  • 10 percent to city law enforcement
  • 10 percent to county law enforcement
  • 5 percent to the Oregon Health Authority for alcohol and drug abuse prevention, early intervention, and treatment services
  • Dispensaries are allowed to keep up to 2 percent of taxes collected

Dispensaries will need to register with the Oregon Department of Revenue’s Marijuana Tax Program and submit quarterly tax returns in addition to monthly tax payments.

In preparation for the influx of cash coming from the retail industry, the Department of Revenue has stepped up its security and employee training for the handling of large cash sums, and hired an additional team specifically for cannabis-related tax payments.

Another upside to consider is that although the tax jump is extreme, it’s also only temporary. Once the program is off the ground and firmly established, the tax rate will decrease back down to a much more reasonable 17 percent permanent sales tax. Not only that, but Oregon medical marijuana patients will continue to be tax-exempt.

Recreational Cannabis is Now Legal in Oregon: 13 Frequently Asked Questions About the New Law

Shop highly rated dispensaries near you

Showing you dispensaries near
See all dispensaries
  • Loading...
    Loading...Loading...
    Loading...
    Loading...Loading...
    Loading...Loading...
  • Loading...
    Loading...Loading...
    Loading...
    Loading...Loading...
    Loading...Loading...
  • Loading...
    Loading...Loading...
    Loading...
    Loading...Loading...
    Loading...Loading...
  • Loading...
    Loading...Loading...
    Loading...
    Loading...Loading...
    Loading...Loading...
  • See all dispensaries
See all dispensaries
adult-use cannabisOregon
Lisa Rough
Lisa Rough
Lisa is a former associate editor at Leafly, where she specialized in legislative cannabis policy and industry topics.
View Lisa Rough's articles

The latest in Industry

  • Delivered Inc.: A dispensary at your doorstep image
    Delivered Inc.: A dispensary at your doorstep
    Leafly Staff
  • Green Flash: Delivering Boston’s cannabis future image
    Green Flash: Delivering Boston’s cannabis future
    Leafly Staff
  • Celebrate 420 weekend with cannabis, community, and creativity at MARY FEST NYC image
    Celebrate 420 weekend with cannabis, community, and creativity at MARY FEST NYC
    Leafly Staff
  • America’s top cannabis events of 4/20 2025 image
    America’s top cannabis events of 4/20 2025
    Amelia Williams
Get good reads, local deals, and strain spotlights delivered right to your inbox.

By providing us with your email address, you agree to Leafly's Terms of Service and Privacy Policy.



Stay In Touch

Receive updates on new products, special offers, and industry news.

Something went wrong, please try again.

By providing us with your email address, you agree to Leafly’s Terms of Service and Privacy Policy.

Leafly mobile app
Get high for less.
Download the Leafly app.
Download Leafly: Marijuana Reviews on the App StoreDownload Leafly Marijuana Reviews on Google Play

Business Solutions
  • List your store
  • List your CBD store
  • List your brand
  • List your practice
  • Business log in

About Leafly
  • About us
  • Careers
  • Newsroom
  • Investor relations
  • Contact us
  • FAQs
  • Accessibility

Dispensaries in
  • Los Angeles
  • Seattle
  • Portland
  • San Francisco
  • Toronto
  • Detroit

Privacy & Terms
  • Terms of use
  • Commercial terms of use
  • Privacy policy
  • Do not sell my personal information

* Statements made on this website have not been evaluated by the U.S. Food and Drug Administration. These products are not intended to diagnose, treat, cure or prevent any disease. Information provided by this website or this company is not a substitute for individual medical advice.


© 2025 Leafly, LLC
Leafly and the Leafly logo are registered trademarks of Leafly, LLC. All Rights Reserved.