Tennessee Imposes Additional Tax on Hemp-Derived Cannabinoid Products

By | Updated on July 4, 2023

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Starting July 1, a 6% “privilege” sales tax will be imposed on all hemp-derived cannabinoid products sold in Tennessee. This tax will be in addition to the existing 7% state sales tax, as per the announcement made by the state Department of Revenue.

Tennessee is among the few states in the U.S. that don’t allow either recreational or medical marijuana. As a result, there’s increased demand for hemp-derived cannabinoid products, including CBD, delta-8, delta-9, and delta-10 THC. All these products — and indeed any cannabinoid product derived from hemp — will be affected by the newly introduced tax. 

Earlier this year, Tennessee introduced new regulations for hemp-derived cannabinoid products, which include:

  • Limiting the sale of such products to people 21 and up
  • Packaging, labeling, and testing requirements
  • Require businesses to have a license to sell hemp cannabinoid products

Tennessee’s efforts present a reasonable middle ground, unlike many other states, which have chosen to either leave hemp-derived products unregulated or introduced bans on delta-8 THC and similar products.

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