New York Cannabis Product Potency Tax

Updated by Admin CG

New York licensed adult-use cannabis distributors shipping to adult-use cannabis products retailers are required to collect a tax based on the item's potency. If you are an operator in this state, you will see this potency tax or cannabis product tax on the outbound order.

  • Products must have an associated COA (Lab Test Result)
  • Products must have a state-approved category (see below)
  • The order lines must be allocated.
  • If these aren't met, you will see the warning below, for example:

Tax Details
  • five-tenths of one cent ($0.005) per milligram of the amount of total THC for cannabis flower;
    • Categories: Kief, Whole Flower
  • eight-tenths of one cent ($0.008) per milligram of the amount of total THC for concentrated cannabis; and
    • Categories: Liquid Marijuana RSO, Marijuana Extract for Inhalation, Rosin/Resin
  • three cents ($0.03) per milligram of the amount of total THC for cannabis edible product.
    • Categories: Capsule/Pill/Tablet, Marijuana Infused Topicals, Solid Marijuana Infused Edible, Tincture, Transdermal, Transmucosal Infused Extract.
  • THC means Delta-9-tetrahydrocannabinol; Delta-8-tetrahydrocannabinol; Delta-10-tetrahydrocannabinol; and the optical isomer of such substances.
  • Total THC means the sum of the percentage by weight or volume measurement of tetrahydrocannabinolic acid multiplied by 0.877, plus the percentage by weight or volume measurement of THC.

Item Set-Up

In anticipation of the BioTrack STS launch, the state-approved classes and categories are as follows. If you need to update your item categories, use the item bulk update feature.

Item Class

Item Category




Mature Plant

Other Material

Plant Tissue



Lot Products

Flower Lot

Kief Lot

Other Material Lot

Wet Flower

Intermediate Products

Bubble Hash

CO2 Hash Extract

Ethanol/Alcohol Extract

Food Grade Solvent Extract


Hydrocarbon Extract

Pressed Extract

End Products



Liquid Marijuana RSO

Marijuana Extract for Inhalation

Marijuana Infused Topicals


Solid Marijuana Infused Edible



Transmucosal Infused Extract

Whole Flower


On the outbound order, you can see the tax next to the "Est. Tax" line under the "Subtotal."

Click the icon to get more details.

Invoice PDF


If the inventory does not meet the requirements above, you will see the warning on the"Est. Tax" total:

To resolve this, please do the following:

  1. Click the red icon to see the message.
  2. Resolve the issues.

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