North Dakota Cannabis Taxes & Fees

Medical cannabis sales subject to North Dakota’s 5% state sales tax + applicable local sales tax (up to ~3.25%). NO excise tax on medical cannabis. Tax revenue flows to general fund / county / municipal coffers like any sales tax. Program funded by patient/licensee fees (FY2024: $623,275 fees vs. $930,257 expenses). Fees post-October 2023 N.D. Admin. Code 33-44-01: manufacturer application $3,000 + biennial certification $75,000; dispensary application $2,000 + biennial certification $60,000; production-only manufacturer $40,000.

Legal Disclaimer: This information reflects North Dakota cannabis law as of June 2026 and is for educational purposes only. It is not legal advice. Laws and regulations change — always verify current rules with the North Dakota Department of Health and Human Services (NDDHHS) Division of Medical Marijuana or a qualified attorney. Cannabis remains illegal under federal law.

Last verified: May 2026

State and Local Sales Tax

North Dakota imposes a 5% state sales tax on medical cannabis purchases. Counties and municipalities may impose additional local sales tax up to ~3.25%, depending on jurisdiction. Effective tax rate ranges from 5% to ~8.25% depending on dispensary location. Tax revenue flows to the state general fund and county/municipal coffers like any other sales tax.

No Excise Tax

Unlike most adult-use cannabis programs (Colorado 15% retail + 15% wholesale; Washington 37%; California ~30% effective; Missouri ~14.475%), North Dakota imposes no excise tax on medical cannabis. The 5% state sales tax + local sales tax is the entire tax burden on consumers. Program funded by patient and licensee fees, not by tax revenue.

Patient Fees (per 2025 SB 2294)

Patient application fee: $40 (raised from $25 by SB 2294).
Card validity: 2 years (extended from 1 year).
Caregivers: not charged.
Some pre-2024 sources cite $50; this reflected pre-2024 amounts and certain duplicate-card scenarios.

Licensing Fees (post-October 2023 N.D. Admin. Code 33-44-01)

The October 2023 amendment to N.D. Admin. Code 33-44-01 substantially reduced licensing fees:

Manufacturing facility application fee: $3,000.
Manufacturer biennial certification fee: $75,000 (every two years).
Dispensary application fee: $2,000.
Dispensary biennial certification fee: $60,000 (every two years).
Production-only authorized manufacturer: $40,000.

⚠️ Older sources (pre-2023) cite higher pre-amendment fees: $5,000 application, $90,000 dispensary certification, $110,000 manufacturer fee. Verify current fee against the live administrative code before relying.

FY2024 Program Finance

Total dispensary sales: $22.42 million.
Program revenue (fees): $623,275.
Program expenses: $930,257.
Cumulative FY2020-FY2024 sales: ~$85.7 million.
Program operates at fee-revenue deficit; supplemental funding from state.

Comparison to Neighboring Adult-Use Programs

Minnesota adult-use: 10% retail tax + state/local sales tax (~7.875% Twin Cities).
Montana adult-use: 20% excise tax + 0% state sales tax.
Manitoba/Canada: 25% federal excise + provincial markups + 13% HST.
South Dakota medical only: state sales tax + local; no excise.

ND’s relatively low tax burden on medical cannabis reflects the program’s policy posture as therapy rather than revenue-generating market.

Workers’ Compensation Coverage

Per N.D.C.C. § 65-05-07(8)(l), Workforce Safety & Insurance (WSI) does NOT pay for medical cannabis. Patients pay out-of-pocket. Health insurance coverage of medical cannabis is unavailable due to federal Schedule I status (pending Schedule III rescheduling).