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Adult-use cannabis products tax

Adult-Use Cannabis Products Tax Web File is here

To get ready to file, watch our demo: Adult-Use Cannabis Products Tax Web File demo.

When you’re ready, see Filing returns and paying tax for instructions and important debit block information.

If you're an adult-use cannabis products distributor, you must pay tax on your sales of adult-use cannabis products to adult-use cannabis products retailers. If you’re an adult-use cannabis products retailer, you must pay a retail tax on the adult-use cannabis products you sell or transfer to retail customers.

Before you begin distributing or selling adult-use cannabis products, you must register with the Tax Department and receive your Adult-Use Cannabis Certificate of Registration. If you're not a licensed distributor or retailer, you must first apply for an adult-use cannabis license with the New York State Office of Cannabis Management.

An adult-use cannabis products distributor cannot sell adult-use cannabis products to adult-use cannabis products retailers who have not received their Adult-Use Cannabis Certificates of Registration or who have had their certificates suspended or revoked.

Licensing, registration, and renewal

Step 1: Apply for a license with the Office of Cannabis Management

You must apply for—and receive—an adult-use cannabis license with the Office of Cannabis Management that allows you to distribute adult-use cannabis products or sell adult-use cannabis products at retail to persons 21 years of age and older, before you register with the Tax Department and begin doing business.

Step 2: Register with the New York State Tax Department

To register, apply online for an Adult-Use Cannabis Certificate of Registration. The application fee is $600. If you have fixed and final New York State liabilities, you must resolve them before we can approve your application. You may contact the Tax Department to determine if you have any outstanding liabilities, or view them in your Online Services account. To pay any outstanding liabilities, see: Pay a bill or notice.

To apply:

  1. Log in to your Business Online Services account (or create one).
  2. Select the ≡ Services menu in the upper-left corner of your Account Summary homepage.
  3. Select Registrations and account updates, then select Business registrations from the expanded menu.

Once your application is approved, the Tax Department will email you instructions on how to print your Form MT-222.7, Adult-Use Cannabis Certificate of Registration.

Log in to register

Renewing your Adult-Use Cannabis Certificate of Registration

An Adult-Use Cannabis Certificate of Registration is valid until the date printed on it, unless it has been suspended or revoked earlier. You must renew your registration prior to the printed expiration date. The renewal fee is $600.

Step 3: Determine if you need to register for a sales tax Certificate of Authority

If you sell any tangible personal property anywhere in New York State, you must register with the Tax Department and obtain a Certificate of Authority, collect tax, and report these sales as instructed on your sales tax returns. Examples of tangible personal property subject to sales tax when sold to customers include, but are not limited to:

  • lighters
  • rolling papers, and
  • pipes.

For more information, see Tax Bulletin Do I Need to Register for Sales Tax? (TB-ST-175) and Tax Bulletin How to Register for New York State Sales Tax (TB-ST-360).

Note: Adult-use cannabis products are exempt from sales tax, but are subject to the adult-use cannabis products tax imposed on a distributor or retail seller who sells adult-use cannabis.

Tax rates

The tax is imposed at the following rates:

If you make retail sales of adult-use cannabis products, a retail tax of 13% on the amount charged for the sale or transfer is imposed.

Filing returns and paying tax

If you are an adult-use cannabis products distributor or an adult-use cannabis products retailer, you must:

  • file quarterly tax returns showing the total amount of tax due for the quarters ending May, August, November, and February;
  • file and pay the tax due no later than the 20th day of the month following the end of each quarter; and
  • file a return even if there are no sales during the quarter.

You must file online using the Tax Department’s Adult-Use Cannabis Products Tax Web File application. To file:

  1. Log in to your Business Online Services account.
  2. Select the ≡ Services menu in the upper-left corner of your Account Summary homepage.
  3. Select Other taxes, then choose Adult-use cannabis products tax web file from the expanded menu.

Log in to file

For important payment information, see Registration and tax payments

Reporting periods and due dates
Quarterly period Filing due date
March 1–May 31 June 20
June 1–August 31 September 20
September 1–November 30 December 20
December 1–February 28 (29 if leap year) March 20

If the due date falls on a Saturday, Sunday, or legal holiday, the return is due on the next business day.

Registration and tax payments

If you have debit blocks on your bank account, you must communicate with your bank to specifically authorize adult-use cannabis registration and adult-use cannabis products tax payments, even if you have already authorized payments for other taxes to the Tax Department. Your bank will process only these authorized transactions.

Note: The Tax Department’s ACH company ID and name for adult-use cannabis registration and adult-use cannabis products tax are different. You must provide your bank with both to avoid payment processing issues.

To find ACH company IDs and names, see ACH debit block information.

Information

Demo: Adult Use Cannabis Registration Demonstration

Demo: Adult Use Cannabis Registration Demonstration
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