Illinois 2nd Highest Cannabis Taxes in the U.S. – Fuels Black Market


With an average tax rate of 41.25% on cannabis, Illinois is beat out only by Washington in the amount it taxes its citizens for weed. As pointed out in a video on Fox 32 Chicago, the six layers of tax on cannabis in Chicago will no doubt bolster black market sales. In the video, Austin Berg, VP of Marketing for the Illinois Policy Institute, says that politicians in Illinois simply don’t understand that their tax policies will serve to drive the illicit cannabis market.

Cannabis Taxes

Neighboring Michigan has a far lower tax rate on cannabis, so those Illinois residents who don’t mind driving over the border will find better deals there. The states with the highest tax rates on cannabis break down like this:

  • Washington State: 47.1%
  • Illinois: 41.25%
  • Colorado: 24.81%
  • Massachusetts: 20%
  • Oregon: 20%

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