Home
News & Updates
Breaking Down Medical vs. Recreational Cannabis Taxes

Breaking Down Medical vs. Recreational Cannabis Taxes

May 21, 2025
|
By Be.

When it comes to purchasing cannabis in New York, taxes play a bigger role than most people realize. For medical patients and recreational consumers, knowing how cannabis is taxed can help you better understand your options and potentially save you some money. Let’s break down how cannabis is taxed in New York and what it means for you as a consumer.

 

Medical Cannabis: Lower Taxes, Targeted Relief

If you’re a certified medical cannabis patient in New York, you’re already familiar with the difference that intentional, personalized care can make. One of the major added benefits is lowered taxes.

As of June 1, 2024, medical cannabis in New York is taxed at a 3.15% excise rate, which is significantly lower than the taxes on adult-use products. This reduced tax rate keeps cannabis accessible for patients who rely on it for relief for chronic pain, anxiety, sleep, or other qualifying conditions.

 

Recreational Cannabis: Higher Taxes, Broader Access

New York’s adult-use cannabis market is open to anyone 21 and older, and that broader access comes with a higher tax rate.

Recreational cannabis is taxed at 13% which is broken down into:

  • 9% for the state
  • 4% for local municipalities

 

On top of that, there’s a wholesale tax based on THC content, applied when products move from distributors to retailers. These taxes help fund important statewide initiatives, but they also mean that recreational customers will typically pay more at checkout than medical patients.

If you’re a frequent consumer or using cannabis for ongoing wellness needs, it might be worth exploring whether medical certification makes sense for you. At Be., we’re happy to answer questions and help you weigh your options.

Tax Revenue Allocations: Where the Money Goes

Every time you purchase cannabis in New York, you’re contributing to something bigger. Tax revenue from cannabis sales is reinvested into programs that uplift and support communities across the state.

Medical cannabis taxes help sustain and expand the state’s medical cannabis program, which supports infrastructure, education, and access for patients.

Recreational cannabis taxes are split three ways:

  1. 40% goes toward public education
  2. 40% is invested in community reinvestment grants
  3. 20% support drug treatment programs and public education campaigns

 

This tax revenue allocation helps New York move forward with equity and care, especially in communities that have been disproportionately affected by past cannabis laws. We’re proud to be a part of a system that’s working toward a more just and inclusive future.

 

Choosing Between Medical & Recreational: What’s Right for You?

In New York, both medical and recreational cannabis are legal. But which path is best for you comes down to your needs, goals, and how often you consume.

If you’re managing a qualifying health condition, medical cannabis may offer real advantages.

  • Lower taxes
  • Professional guidance
  • Access to targeted products make it a smart choice for patients who consume cannabis regularly for relief.

 

Plus, at Be., our team of pharmacists and trained staff is here to help every step of the way. They’ll guide you through anything, from getting certified to finding what works best for your body.

On the other hand, if you’re consuming cannabis occasionally and recreationally, adult-use can be a great option.

  • Convenient
  • Flexible
  • Available to anyone 21 or older.

 

Just keep in mind that you’ll pay more taxes at checkout, and you won’t have the same medical-specific support or product selection.

Not sure where you land? We’re here to talk you through it, judgment-free and focused on what feels right for you.

 

Navigating NY’s Cannabis Tax Landscape

Knowing about cannabis taxes in New York supports access, equity, and making informed choices that support your wellness. If you’re a medical patient looking for targeted relief or an adult-use consumer exploring what works for you, understanding the state’s tax structure can help you shop smarter and feel more confident in your decisions.

At Be., we’re here to make those decisions easier. Our pharmacists, Dispensary Agents, and support staff are ready to walk you through the process, explain your options, and help you figure out what makes the most sense for your lifestyle.

Have questions about switching to medical? Want to understand more about how taxes affect your purchase? Come visit us at a New York dispensary near you. With locations in Staten Island, Brooklyn, and the Hudson Valley, we’re always just a quick stop away! We’re always here to help you feel informed, supported, and empowered.

The contents of this blog are intended for informational purposes only. Always seek the advice of a physician or other qualified healthcare provider with any questions you may have regarding a medical condition.

Copyright © 2026 Be. All rights reserved. United States
Please consume responsibly. The contents of this site have not been evaluated or approved by the U.S. FOOD AND DRUG ADMINISTRATION nor reviewed by any other government or official body. All content contained on or available through this site is provided for general informational purposes only. The information contained herein is not intended or implied to diagnose, cure, or prevent any disease or disorder of any kind, and is not intended or implied to be a substitute for professional medical advice, diagnosis, or treatment. If you have any concerns or questions about your health, you should always consult your physician or other qualified health care professional. Do not disregard, avoid, or delay obtaining medical or health-related advice from your physician or other qualified health care professional because of the information you have read on this site. The information on this site is provided “as is” without any representations or warranties, expressed or implied, and is subject to change without notice. There is limited information on the side effects of using cannabis and there may be associated health risks. Cannabis use during pregnancy and while breastfeeding may pose potential harm. All products containing cannabis or its derivatives should be kept out of the reach of children.
Select a store

Be. Ithaca

700 W Buffalo Street Ithaca, NY 14850

Open hours

APPOINTMENT ONLY

Welcome to our website!

Please, verify your age to enter.
By entering this site you are agreeing to the Terms of Use and Privacy Policy.