Interactive Tool · Cannabis Tax Stack Calculator · Cycle 47
Calculate Your True Federal + State Cannabis Tax Burden
§280E doesn't work alone. Input your revenue, state, entity structure, and §471(c) election status — get your combined federal + state stacking effective rate, cash-flow impact, and Bob Hoban's restructuring recommendation.
Federal §280E Layer
21–35%Plant-touching businesses cannot deduct ordinary business expenses — only COGS. §471(c) election can reduce this burden for qualifying operators.
State Excise + Income Layer
0–37%State cannabis excise taxes, sales taxes, and income taxes stack on top of federal. §280E state conformity varies widely — some states fully decouple.
Combined Stack
21–72%The combined effective rate is what you actually pay. For most plant-touching operators without §471(c), this exceeds 50 cents per dollar of revenue.
What is your annual cannabis revenue?
State Tax Comparison
Compare excise rates, §280E conformity, and market size across states — side-by-side matrix for multi-state operators.
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IRS Compliance Hub
Every IRS ruling, audit initiative, and §280E update affecting cannabis operators — curated by Bob Hoban.
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§471(c) Safe Harbor Qualifier
Check whether your business qualifies for the §471(c) small business taxpayer election and estimate the federal rate reduction.
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Ready to Restructure?
Your tax stack estimate is the starting point — not the verdict
Entity restructuring, §471(c) elections, accounting method changes, and state selection can materially reduce your effective rate. Hoban Law Group reviews your specific structure and recommends an action plan.