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Governor Phil Murphy • Lt. Governor Tahesha Way

Division of Taxation

License Information

Individuals or Businesses that wish to engage in the New Jersey Recreational Cannabis industry must be registered with the New Jersey Division of Revenue and Enterprise Services (DORES) and obtain a license from the Cannabis Regulatory Commission.

Depending on your business structure, you may need to register for New Jersey Corporation Business Tax or Partnership Tax. If you plan on having employees you will also be required to register for Employer Withholding Tax.

The Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization (CREAMM) Act, established six classes of licenses for Recreational Cannabis businesses. You must file and pay all of your New Jersey tax obligations to remain in good standing and maintain your license. Businesses that hold a Class 1, Class 5, or Class 6 license will be required file and pay additional taxes and fees.

Recreational Use Licenses Authorized Activity Tax Responsibilities
Class 1 - Cannabis Cultivator Grow recreational use cannabis. Social Equity Excise Fee (SEEF)
Class 2 - Cannabis Manufacturer Produce recreational use cannabis.
Class 3 - Cannabis Wholesaler Store, sell, or transfer recreational use cannabis items between cannabis cultivators, wholesalers, or retailers.
Class 4 - Cannabis Distributor Transport cannabis items in bulk between cannabis cultivators, manufacturers, or retailers within the State of New Jersey.
Class 5 - Cannabis Retailer Purchase recreational use cannabis from licensed cultivators, manufacturers, or wholesalers and sell those items to consumers in a retail store. Sales Tax
Class 6 - Cannabis Delivery Transport a consumer's purchases of recreational use cannabis and related supplies from the retailer to that consumer. Sales Tax

Last Updated: Monday, 04/25/22