Maryland cannabis businesses pay a 12% state cannabis sales tax on adult-use retail sales (raised from 9% effective July 1, 2025 under the FY26 budget), plus up to 3% local cannabis tax depending on jurisdiction. Medical cannabis is fully exempt from this tax with a valid MCA card. All cannabis tax obligations are administered by the Comptroller of Maryland in coordination with the Maryland Cannabis Administration (MCA) for licensing compliance. Federal 280E still applies to adult-use operations, but state-licensed medical operations gained 280E relief on April 23, 2026 through federal rescheduling.

On April 23, 2026, state-licensed medical cannabis was rescheduled from Schedule I to Schedule III federally, lifting Section 280E restrictions for qualifying medical operators. For Maryland medical operators, this means ordinary business expenses may now be deductible on federal returns for tax year 2026. Treasury and the IRS have announced that detailed guidance is forthcoming. Combined with Maryland's state-level 280E decoupling (effective tax year 2022 under HB 837), Maryland medical operators effectively have ordinary-business-expense deductibility on both federal and state returns. Adult-use cannabis remains on Schedule I and fully subject to 280E. Operators holding both medical and adult-use licenses must now maintain accounting systems that segregate expenses by license type. A broader DEA hearing to consider rescheduling all cannabis begins June 29, 2026.

Yes. Maryland decoupled from federal Section 280E for state income tax purposes effective tax year 2022, under House Bill 837 (signed without signature in April 2022). Maryland cannabis businesses can deduct ordinary and necessary business expenses when calculating their state taxable income, even though those expenses may not be deductible federally for adult-use operations. Combined with the April 2026 federal rescheduling of medical cannabis to Schedule III, qualifying Maryland medical operators now have one of the more favorable cannabis tax positions in the country.

Maryland cannabis businesses face a 12% state cannabis tax, up to 3% local tax, MCA compliance requirements, federal 280E limitations on adult-use, and the financial complexity of managing both medical and adult-use license types. A cannabis-specialized CPA helps operators navigate all of these simultaneously while building financial reporting infrastructure that satisfies the MCA, the Comptroller of Maryland, investors, and the IRS. Generic accounting workflows retrofitted for cannabis consistently underperform in this regulatory and tax environment.

Maryland cannabis operators should maintain inventory records reconciled with MCA seed-to-sale tracking, point-of-sale data with medical and adult-use sales clearly separated, COGS documentation, payroll records, bank statements, and all state and local cannabis tax filings. Multi-location operators need consolidated financial reporting with both location-level and company-level visibility for management, investor reporting, and MCA compliance purposes.

We serve Maryland cannabis businesses statewide, including Baltimore, Rockville, Gaithersburg, Silver Spring, Frederick, Annapolis, Columbia, and all other markets. Our services are delivered remotely with full coverage for every Maryland cannabis operator regardless of location.