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These changes took effect on May 3, 2023.
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.
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.
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.
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.
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.
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:
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.
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.
If you are an adult-use cannabis products distributor or an adult-use cannabis products retailer, you must:
You must file online using the Tax Department’s Adult-Use Cannabis Products Tax Web File application. To file:
For important payment information, see Registration and tax payments.
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.
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.
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