Mississippi Cannabis Tax Guide: 2025 Edition

Updated July 1, 2025

Key Points

• No Adult‑Use Program Yet
  Mississippi has not legalized recreational cannabis as of 2025, so no excise tax or sales tax applies to adult‑use products.

• 5 % Excise Tax on Cultivators
  All medical cannabis cultivators owe a 5 % excise tax on their first sale or transfer of flower or trim to a dispensary or related entity.

• 7 % State Sales Tax at Dispensaries
  Dispensaries must collect the standard 7 % state sales tax at the point of sale; Jackson and Tupelo may impose additional local levies.

• Mandatory Seed‑to‑Sale Tracking
  Every licensee must use the statewide seed‑to‑sale system maintained by the Department of Health for inventory control and tax reporting.

• Monthly E‑Filing Required
  All cannabis‑related taxes (excise and sales) must be filed electronically on a monthly basis—even if you report zero sales.

• Penalties for Noncompliance
  Late filings, unpaid tax, or failures in tracking can trigger fines, interest, audits, license suspension, or revocation.

1. Excise Tax

• Rate & Applicability
  5 % of the sales price (or fair‑market value, if there is common ownership) on the first sale or transfer from a cultivation facility to a medical cannabis establishment.

• Who Pays
  Only cultivators pay this excise tax; dispensaries and patients are exempt.

• Fair‑Market Value Notices
  MDOR publishes fair‑market values twice a year (effective July 1–Dec 31, Jan 1–June 30) to calculate excise tax when entities share ownership.

2. Sales Tax

• State Rate
  7 % applies to all retail medical cannabis sales.

• Local Add‑Ons
  Jackson and Tupelo may impose special sales‑tax levies in addition to the 7 % state rate Flowhub.

• Exemptions
  No sales tax applies to transfers between licensees or to non‑cannabis items sold by dispensaries.

3. Reporting & Filing

• Frequency: Monthly (20th day of the following month).

• Method: Electronic filing via TAP (Taxpayer Access Point).

• Zero‑Sales Filings: Still required to maintain compliance.

• No Quarterly Option: Cannabis taxes must be filed monthly.

4. Record‑Keeping & Tracking

• Seed‑to‑Sale:

  • Enter daily inventory, harvests, transfers, sales, disposals, remediation, and ending inventory in the state’s tracking system.

  • Retain backup records for audits.

5. Penalties & Audits

• Late Filing/Penalties: Late fees, interest, and administrative penalties apply.

• License Risk: Repeated or egregious noncompliance can lead to suspension or revocation.

• Audit Exposure: MDOR and Department of Health conduct routine and ad‑hoc audits.

6. Key Industry Associations

• Mississippi Cannabis Trade Association (MSCTA)

• Mississippi Independent Cannabis Association (MICA)

• The Health Coalition of Mississippi

• Minority Cannabis Business Association (MCBA)

• National Cannabis Business Association (NCIA)

7. Government Contacts

Mississippi Department of Health – Medical Cannabis Program

• Phone: (601) 206-1540

• Address: 570 E. Woodrow Wilson Ave., Jackson, MS 39216

• Patients, caregivers or practitioners: MCRegistration@msdh.ms.gov

• Work permits (agents) or business licenses (cultivation, processing, disposal, commercial transportation, testing facilities): MCLicensing@msdh.ms.gov
• E-mail updates about the Mississippi Medical Cannabis Program: Subscribe

Mississippi Department of Revenue

• Cannabis Taxes Website: industry-specific tax information.

• Phone: (601) 923‑7700

• Administers: Excise tax, sales tax, income tax.

8. Quick‑Reference Tax Calendar

Disclaimer: This guide is informational only. Always verify rates, deadlines, and procedures with the Mississippi Department of Revenue and Mississippi Department of Health before making compliance decisions.