What Is the Montana Weed Tax?
Montana’s cannabis tax system is built around excise taxes, not general sales tax. That means when you see a $35 eighth on the shelf, your final total depends on which category you’re in:
On top of that, counties can vote to add a
3% local-option tax on medical, adult-use, or both. Some do, some don’t, and that’s where totals start shifting from place to place.
That means your buddy in Missoula might pay more than your cousin in Billings for the same eighth. It also means medical patients, veterans, and fixed-income shoppers often stretch their budgets further by holding a med card.
Here’s the kicker: Montana has
no general state sales tax.
So unlike Washington or Oregon, every extra cent you see on the receipt comes straight from cannabis excise taxes, not sales tax.
At
Elevated, we’ve built a reputation for being transparent about totals. Budtenders walk you through “out-the-door” math, explain county-by-county differences, and help you decide whether medical savings make sense long-term.
Because in a state where every dollar counts, clarity is more than good service, it’s part of trust.
How the Montana Weed Tax Works
Think of it as a stack:
- Menu price (the base cost of the product).
- State cannabis tax (20% or 4%).
- Local-option tax (0–3%, depending on county).
Example:
A $40 eighth in Yellowstone County (adult-use + 3% local tax) =
- $40 + $8 (20%) + $1.20 (3%) →
$49.20 out the door.
Same product in a county without the local tax?
$48 flat.
Who the Weed Tax Applies To (and Who It Doesn’t)
- Everyone buying cannabis legally in Montana pays either the 20% or 4%, plus any local tax where applicable.
- Medical cardholders consistently save thanks to the lower rate, making the card especially valuable for frequent shoppers, veterans, and fixed-income patients.
- Tourists sometimes get tripped up, expecting a “normal” sales tax like in their home state. But Montana doesn’t have one, so it’s cannabis excise only.
State Tax Rates: The Baseline
Montana keeps it simple at the state level:
- 20% on adult-use cannabis.
- 4% on medical cannabis.
This baseline applies everywhere, no matter what county you’re in. For most shoppers, that’s the biggest driver of the final price.
No General Sales Tax: Montana’s Quirk
One reason tourists get confused is that Montana has no statewide sales tax. In many states, cannabis gets hit with both excise
and sales tax. Here, it’s just cannabis excise + local-option add-ons.
That’s good news for clarity: when you see the tax line on your receipt, you know it’s all cannabis-specific.
County-by-County Variation
Prices can vary across
Elevated locations simply because counties set their own tax rules. For example:
- Billings (Yellowstone County): 20% + 3% adult-use.
- Helena
(Lewis and Clark County): 20% adult-use, no 3% add-on.
- Missoula County: 20% + 3% adult-use, plus 3% on medical.
Two shoppers can buy the same product and pay different totals, just because of county lines Montana’s cannabis tax revenue isn’t just pocketed by the state. Funds are distributed into:
- State parks and trails.
- Wildlife habitat programs.
- Veterans’ services.
- Substance-use treatment initiatives.
But these allocations are under constant debate. Lawmakers continue to push and pull over “who gets what,” which means the way your weed tax dollars are spent could change in future sessions.
How Discounts Interact With Taxes
One of the biggest questions at checkout:
“Does my discount apply before or after the cannabis tax?”
- Discounts reduce the base menu price first.
- The 20% or 4% tax is then calculated on that discounted amount.
- Any county 3% add-on is stacked at the end.
So if your $50 cart has a 10% promo ($45), the adult-use tax is $9 (20%), plus $1.35 if you’re in a 3% county. Final total = $55.35, not $60.
Receipts Decoded
Montana dispensary receipts might look confusing at first glance. Here’s what to expect:
- Base price = menu price or discounted subtotal.
- State tax line = 20% (adult-use) or 4% (medical).
- Local tax line = 0–3%, county-dependent.
- Total due = all stacked together.
Pro tip: If your total looks higher than expected, check if your county has a local tax approved. That’s often the difference between two
Elevated locations.
Medical vs. Recreational: The Real Savings
Medical patients consistently save thanks to the 4% rate. Let’s compare on a $100 cart:
- Adult-use, no local tax: $120 out the door.
- Adult-use, 3% county:
$123.
- Medical, no local tax:
$104.
- Medical, 3% county:
$107.
For frequent shoppers, that 16%+ difference adds up fast, often justifying the cost of holding a medical card.
Out-the-Door Math, Simplified
While most guides list rates,
Elevated actually shows you the
real totals. Our budtenders walk customers through out-the-door math:
- Menu price
- Discount applied
- State tax (20% or 4%)
- County tax (0–3%)
That way, no one’s blindsided at checkout, whether they’re locals budgeting weekly or visitors comparing states.
Why Elevated’s Approach Works
