Maine Advances Cannabis Tax Hike From 10% to 14% Amid Steady Retail Demand

By A.J. Herrington, Featured Writer

Maine lawmakers have approved a bill that would raise the state’s adult‑use cannabis tax rate and create a new excise structure for pre‑rolls, setting up one of the most significant policy shifts the market has seen since legalization. The measure, House Bill 1942, cleared both chambers in early April and now awaits the governor’s action. If signed, the state’s sales tax on adult‑use cannabis products will increase from 10% to 14% beginning January 1, 2026.

The bill also extends the 14% rate to potentially intoxicating hemp products starting in 2027, according to a report from Marijuana Herald. Lawmakers narrowed the proposal during the committee process, focusing on marijuana taxes, hemp‑derived intoxicating products, and updated excise reporting rules.

The Senate later adopted an amendment that reshaped the pre‑roll excise plan. Instead of the original flat $143‑per‑pound tax, the final version applies Maine’s existing excise structure based on the amount of flower and trim in each pre‑roll. The amendment also expands the definition of a pre‑roll to include infused products.

Supporters argue that the changes will bring more consistency to the state’s tax system and help Maine keep pace with evolving product categories. The bill also adjusts the filing schedule for cultivation facility licensees. Through the end of 2026, excise tax returns remain due on the fifteenth of each month. Beginning in 2027, the deadline moves to the last day of the month.

The House first passed the bill on March 26 with an 89-55 vote. The Senate approved it 23-9 after adopting its amendment, and the House later concurred. With the measure now on the governor’s desk, businesses are watching closely to see how the higher tax rate and new excise structure might affect pricing, margins, and consumer behavior once the changes take effect.

State Reports Strong Retail Sales as Prices Fall

The tax debate comes at a moment when Maine’s adult‑use market continues to show strong demand even as prices fall. Newly released state data shows that licensed retailers generated more than $19.1 million in sales in March. Regulators reported $19,163,666 in adult‑use transactions for the month across nearly 390,000 purchases. That total is only slightly below the roughly $19.5 million recorded in March 2025, despite a notable drop in average prices.

The average price per gram of flower in March was $6.10, down from $6.87 a year earlier. That is a decline of a little more than 11%, continuing a multi‑year trend of lower prices in Maine’s maturing market. Even so, overall sales have remained relatively stable, suggesting that increased purchasing volume and consistent consumer demand are helping offset the lower cost per gram.

Through the first quarter of 2026, Maine has recorded nearly $60 million in adult‑use cannabis sales and more than 1.2 million transactions. The average price per gram for the year so far is $6.18.

With retailers and cultivators already operating in a tightening market, the combination of falling prices and steady demand provides important context for the tax bill now awaiting the governor’s signature. A higher sales tax and a new excise tax on pre‑rolls could add pressure, though the full impact will depend on how businesses adjust and how consumers respond in 2026 and 2027.