Naomi Granger, CPA, MBA
The Definitive Resource for Cannabis Financial Professionals in Massachusetts
The Massachusetts cannabis industry has evolved into a robust market since legalization, generating billions in revenue while continuing to refine its regulatory framework. Today, we’re excited to announce our comprehensive guide to Massachusetts Cannabis Accounting & Tax Guide: Regulations, 280E & Compliance [2025]. Just in time for NECANN Boston!
Since legalization, Massachusetts has built one of the nation’s most successful regulated cannabis markets, with sales reaching an unprecedented $1.64 billion in 2024 alone. Our guide provides an in-depth analysis of the state’s regulatory landscape, licensing requirements, and tax frameworks that accounting professionals must navigate to effectively serve cannabis clients.
A major development for cannabis businesses in Massachusetts is the state’s decision to decouple from IRC Section 280E, providing substantial tax relief at the state level. This change dramatically reduces the effective tax rate for cannabis operations in the Commonwealth, creating significant opportunities for strategic tax planning and improved profitability.
Key Takeaways
- Market Performance: Massachusetts surpassed $4 billion in cumulative adult-use cannabis sales, with Worcester County emerging as the “cannabis capital,” accounting for $1.4 billion in sales since 2018.
- License Landscape: The state has approved approximately 700 cannabis businesses across various license categories, with three new social consumption license types planned for mid-2025.
- Tax Structure: Cannabis businesses face a multi-layered tax structure, including a 10.75% excise tax, a 6.25% state sales tax, and up to a 3% local tax, while medical sales remain tax-exempt.
- 280E Decoupling: Massachusetts now allows cannabis businesses to take normal business deductions for state tax purposes, potentially reducing the effective tax rate from 68% to around 29%.
- Compliance Requirements: All licensed businesses must use Metrc for seed-to-sale tracking, with new testing protocols effective April 1, 2025, to enhance product safety and prevent “lab shopping.”
- Banking Solutions: Despite federal challenges, several financial institutions now offer specialized services for cannabis businesses in Massachusetts.
Expert Support Available
Need a cannabis-specialized accountant who understands Illinois’ unique regulatory landscape? Check out our certified professionals linked directly on the blog
Kenneth Mason, CPA, MBA & Monique Swansen
Or browse our directory of professionals who can help you navigate financial complexities and optimize your business strategy.
Accounting Professionals
Ready to expand your expertise in this rapidly growing industry? Contact support@nacatpros.org to learn about specialized training, resources, and networking opportunities that will position you as a leader in cannabis accounting.
