What it calculates
Use the result as a scenario, not a black box
Cannabis tax structures differ dramatically by state and city, so this tool never guesses a jurisdictional rate. You enter the rates and choose the calculation method. The output separates each tax component and shows the effective total tax burden on the entered price.
How the math works
Additive method: sales tax = base × sales rate, excise tax = base × excise rate. Compounded method: excise tax = base × excise rate, then sales tax = (base + excise tax) × sales rate. Final total = base + both taxes.
Example
On a $50 item with 8.25% sales tax and 15% excise tax, the additive estimate is $4.13 sales tax plus $7.50 excise tax, for a $61.63 checkout total. Compounding produces a slightly higher total because sales tax is applied after excise tax.