Updated July 1, 2025

A 3D topographic map of the state of Georgia is displayed on a wooden surface, showing terrain elevations with green, yellow, and orange gradients. Below the map, bold white 3D text reads "GEORGIA CANNABIS TAX GUIDE."

Key Points

  • Adult‑use cannabis remains illegal in Georgia.

  • Only state‑approved low‑THC oil (≤ 5% THC; max 20 fl oz per patient) is authorized — and only to registered patients.

  • There is no special excise tax on medical cannabis in Georgia.

  • All medical cannabis oil sales are subject to Georgia’s general sales tax: 4% state rate + any local add‑ons.

  • Hemp-derived beverages are legal, and although No Hemp Tax exists, sales tax still applies.

  • Sales‑tax returns (Form ST‑3) are due monthly by the 20th and must be filed online via the Georgia Tax Center, even if you had no sales.

1. Deductions & 280E

  • Georgia conforms to federal IRC § 280E.

  • Medical cannabis businesses may not deduct ordinary business expenses (rent, payroll, marketing, etc.) against state income tax beyond cost of goods sold.

2. Taxed Products & Rates

What’s taxed?

  • Only low‑THC oil dispensed through licensed medical cannabis dispensaries.

  • All other forms of cannabis (flower, edibles, full‑strength extracts) remain prohibited.

Sales Tax

  • State rate: 4%

  • Local add‑ons: Varies by city/county

    • Atlanta – 8.9% total

    • Savannah – 7.0% total

    • Augusta – 8.0% total

  • Sales tax applies to the entire purchase price (product, fees, etc.), computed exactly as for any other tangible good.

3. Filing & Payment

  • Return Form: ST‑3 (Sales Tax)

  • Frequency: Monthly (even with zero sales)

  • Due Date: 20th of the month following each reporting period

  • Filing Method: Online only via the Georgia Tax Center

  • Quarterly Option: Small‑volume sellers may request quarterly sales‑tax filing — contact DOR to apply.

4. Penalties & Compliance

  • Late Filing/Payment: Subject to interest and penalties.

  • Non‑Compliance: Repeated mistakes or failures can trigger audits, fines, or suspension/revocation of your medical cannabis license.

  • Record‑Keeping: Maintain detailed sales records, patient registry checks, and transaction documentation for each sale.

5. Government Contacts

Georgia Department of Revenue

  • Administers sales tax and state income tax

Georgia Department of Public Health – Medical Cannabis Program

  • Manages patient registry and dispenser licensing

Georgia Board of Pharmacy

  • Oversees dispensing rules and facility inspections

Georgia Secretary of State

  • Handles business registration and licensing

6. 2025 Financial Calendar

Tax Type Rate / Details Applies To Filing Frequency Due Date (2025)
Sales Tax 4% state + local add‑ons Dispensaries Monthly* 20th of the following month
State Income Tax IRC 280E conformity (only COGS deductible) All cannabis businesses Annually April 15

*Quarterly sales‑tax filing available for eligible small‑volume sellers (sales tax only).

7. Industry Associations

Disclaimer: Tax laws and local rates change frequently. Always verify current rates with the Georgia Department of Revenue and consult a qualified tax advisor before making any business, tax, or compliance decisions.