The Maryland state senate approved medical cannabis access through Senate Bill 923 in 2014, marking the foundation of the state’s cannabis program. Since then, significant progress has been made. Adult-use cannabis legalization, initially projected for 2023, became a reality in July 2023, following the successful passage of House Bills 1 and 837. Recreational cannabis sales have quickly surpassed expectations, contributing significantly to Maryland’s economy.
As of December 2024, total cannabis sales in Maryland — including both medical and recreational — are estimated to have exceeded $700 million annually. This remarkable growth underscores the state’s strategic position in the Northeast, benefiting from proximity to densely populated metropolitan areas such as Washington, D.C., and Philadelphia.
This blog will provide a comprehensive guide to Maryland’s cannabis laws, license types, acquisition processes, tax rates, and other essential information for entrepreneurs looking to enter this lucrative market.
Can I Open A Dispensary In Maryland Right Now?
The Maryland Medical Cannabis Commission (MMCC) is currently not accepting dispensary license applications.
According to the MMCC website, they have already issued pre-approvals for cultivation, processing, and dispensary licenses. There are two stages of license approval and the pre-awardees are currently working through stage two of the approval process. The second stage includes undergoing background verification, completing regulatory requirements, getting local zoning approvals, and also constructing the facilities. The final voting on licenses will happen during public meetings on a rolling basis, as pre-awardees complete their regulatory requirements.
The MMCC, now renamed the Maryland Cannabis Administration (MCA), may announce plans to reopen the application process for new dispensary licenses in 2025. This can be part of an effort to expand access under Maryland’s recreational cannabis program, which launched successfully in 2023. Applicants would be required to meet stringent social equity guidelines, possibly prioritizing minority-owned businesses and applicants from communities disproportionately affected by past cannabis prohibition.
How Much Can You Buy?
Qualifying patients can possess 120 grams of usable cannabis (primarily dried flower) or 36 grams of THC as a 30-day supply. And you will be able to home-grow cannabis if House Bill 1 and 837 come to pass in the November 2022 ballot.
For Adult-Use Purchasers (21 and older):
- Up to 1.5 ounces of cannabis flower.
- Up to 12 grams of concentrated cannabis (e.g., oils, waxes).
- Up to 750 milligrams of THC in cannabis-infused products (such as edibles or tinctures).
Medical cannabis patients can purchase up to 120 grams (about 4.2 ounces) of cannabis flower per month. This limit can vary depending on medical necessity and the recommendations of their healthcare provider.
Additionally, it’s important to note that cannabis must be purchased from licensed dispensaries, and transporting cannabis across state lines or on federal property remains illegal, even within Maryland.
Current Cannabis Laws In Maryland
- Patients with qualifying medical conditions. As of now, adult-use cannabis is illegal.
- An individual can apply for ownership or have an interest in up to four dispensaries.
- The first term of a dispensary license is six years, and subsequent renewals are four years.
- The MMCC can inspect dispensaries and penalize or revoke licenses if found non-compliant.
- As of July 2023, Maryland has legalized recreational (adult-use) cannabis for individuals aged 21 and older. Adults can legally possess up to 1.5 ounces of cannabis flower, 12 grams of concentrate, and 750 milligrams of THC in infused products. Public consumption remains prohibited, and cannabis cannot be consumed in vehicles or on federal property.
- Maryland also has a comprehensive medical cannabis program. Patients with qualifying medical conditions can obtain medical marijuana with a prescription from a licensed physician. The limits for medical cannabis purchases are higher, with patients allowed to buy up to 120 grams of cannabis flower per month.
- Dispensary Ownership: An individual or business entity in Maryland can own or have an interest in up to four dispensaries. This regulation is designed to prevent monopolies and promote fair access within the cannabis market.
- Dispensary licenses are granted for an initial term of six years, with subsequent renewals every four years. All cannabis dispensaries must adhere to strict regulations, and the Maryland Cannabis Administration (MCA) can inspect dispensaries to ensure compliance. Non-compliant dispensaries may face penalties or have their licenses revoked
How Much Cannabis Can An Adult In Maryland Possess?
Patients can buy a 30-day supply of either 36 grams of THC or 120 grams of usable cannabis. The 30-day cycle works on a rolling basis rather than a monthly basis.
In Maryland, adults aged 21 and older can legally possess the following amounts of cannabis:
- Up to 1.5 ounces of cannabis flower.
- Up to 12 grams of cannabis concentrate (such as oils, waxes, and hash).
- Up to 750 milligrams of THC in cannabis-infused products (like edibles, tinctures, etc.)
Possession amounts above these limits are subject to legal penalties, and public consumption of cannabis remains prohibited. Additionally, cannabis cannot be consumed while driving or in public spaces.
Is Recreational Cannabis Legal In Maryland?
Adult-use cannabis is currently legal in Maryland.
What’s On The November 2022 Ballot For Maryland?
If House Bills 1 and 837 come to pass in November 2022, expect the following changes:
House Bill 1 proposes an amendment to the Maryland constitution that would legalize adult use and possession of cannabis. Even if the referendum is passed in November 2022, this law will come into force on or after July 1, 2023.
House Bill 837, specifies the criteria under which marijuana is permitted for recreational use in Maryland. House Bill 837 includes the following:
- Legal residents who are 21 years and up can purchase and have up to 1.5 ounces of marijuana
- Decriminalizes the possession of up to 2.5 ounces of marijuana.
- Legal residents will be able to home-grow up to 2 plants.
- Gifting cannabis from one legal adult to another will be legal.
Following the passage of House Bills 1 and 837, Maryland implemented its recreational cannabis program in July 2023. The program has already generated over $700 million in combined medical and recreational cannabis sales as of 2024. The state is also refining regulations around home cultivation and delivery services, with further updates expected in early 2025.
In accordance with House Bill 837, cannabis cultivation requires additional safety measures in addition to growing no more than two cannabis plants. Home growers cannot:
- Grow or place their cannabis plants in public view and away from minors.
- Seek permission from the landlord before growing cannabis plants
- Grow more than two cannabis plants in one house
Even if House Bill 1 and 837 are passed in November 2022, the sale of recreational cannabis, home cultivation of cannabis, decriminalizing possession of more than 2.5 ounces, and other laws will not come into effect before 2023.
Tax Rates In Maryland
In the state of Maryland, medical marijuana purchases made by eligible patients are exempt from state sales tax.
In Maryland, adult-use cannabis is taxed at a flat rate of 9% on the retail price, as established by the state legislature in 2023. This tax applies to all cannabis and cannabis products sold within the state. The revenue collected from this tax is allocated to various state funds, including community reinvestment, public health, and business assistance, as outlined under the Cannabis Reform Act.
Current Cannabis Market In Maryland
According to state regulators, Maryland medical cannabis sales reached about $600 million in 2021. It is estimated that cannabis sales can hit between $600 million-$725 million in 2022.
Maryland’s cannabis market is poised for rapid growth, especially after the legalization of recreational cannabis. The state’s strategic location, combined with a population exceeding 6 million, makes it a lucrative market for dispensary owners. The proximity to densely populated areas such as Washington, D.C., and Philadelphia further amplifies its potential. Analysts predict that Maryland’s cannabis industry could exceed $1 billion annually by the end of 2024, driven by increasing consumer demand* and regulatory advancements.
Recent reports even suggest that Maryland’s cannabis market is on track to exceed $1.3 billion in sales by the end of 2025, fueled by expanding product offerings and increased consumer adoption of recreational cannabis.
Types Of Cannabis Licenses In Maryland
Following are the types of medical cannabis licenses processed in Maryland:
Cultivator License
- Can grow cannabis in a commercial facility.
Types Of License
- Grower license
- Annual license fee: $125,000;
- Application Fee: Stage 1 – $2,000, Stage 2: $4,000
- Grower and dispensary license
- Annual license fee: $165,000,
- Application Fee: Stage 1: $3,000; Stage 2: $8,000
Dispensary
- Licensed to sell cannabis for medical use to patients and caregivers.
- Annual License fee: $40,000
- Stage 1: $1,000; Stage 2: $4,000
Processor
- Licensed to create new products like concentrates, topicals, and edibles.
- Annual license fee: $40,000
- Stage 1: $2,000; Stage 2: $4,000
How To Get A License
Here’s what we know about how to open a dispensary in Maryland so far:
- Pay an application fee
- Submit the legal name and address of the dispensary
- Each principal director or officer’s name, residence, and birthdate for the dispensary
- The operating procedures the dispensary will follow for the storage and security of the medicinal cannabis
- A strategy for the dispensary’s enforcement of Maryland’s medical marijuana or medical cannabis laws.
Maryland Dispensary Fees
| Type of Fee | Amount |
| Stage 1 Application Fee | $1,000 |
| Stage 2 Application Fee | $4,000 |
| Licensing Fee (valid for 6 years, after renewal license valid for 4 years) | $80,000 |
| Initial buildout fee and start-up expenditures | $500,000 |
What Else Do You Need to Open a Dispensary in Maryland?
Step 1
Understand Cannabis Laws In Maryland
Cannabis laws vary from state to state in the United States. Therefore, be sure you fully comprehend the rules and legislation before submitting an application for a marijuana license in Maryland. You’ll be able to maintain compliance and increase your likelihood of having your license authorized.
Step 2
Create A Scalable Business Plan
Typically, the first step in transforming an idea into a real business is to create a plan of action. As you write, your thoughts begin to form a plan and a path forward becomes clearer. But business plans aren’t just for new companies; they may also be revised by established companies.
In any instance, written documentation can provide the required clarity to motivate employees, entice investors, or influence future decisions. Your business plan needs to take into account the following factors to guarantee funding and strategic growth:
Competitive Analysis
Along with describing the factors that make you stand out from the competition, it is crucial to give a thorough analysis of your rivals.
The operations, finances, history, leadership, and distribution strategies of your direct and indirect competitors should be the main subjects of this analysis. It should analyze the value propositions of these rivals and discuss how you might compete with them.
Sales Strategy
Describe your sales strategy and, if applicable, the process you plan to use. Investors can learn about your experience by seeing your sales prowess, as sales are what sustain and generate revenue for your business. Sales are the fuel for a corporate journey.
You should give a detailed account of how you plan to market and sell your cannabis products, even if you are unsure of how things will turn out in terms of sales and marketing or which distribution channels will be the most lucrative.
This is due to the fact that preparation shows that you are thinking ahead and that you have faith in your abilities.
Marketing Plan
The success of any business depends on having a thorough marketing plan. Reviewing your marketing plan at least once a year is essential because your marketing strategies and methods will change year after year.
Financial Plan
This is the section of the plan you should pay the most attention to. Based on your current financial condition and a map of where you will need money, this part will summarize your financial strategy and estimates.
Brand Positioning
The business strategy helps you establish your brand’s position in the cannabis industry. This portion will provide you the opportunity to succinctly introduce the business and its brand to customers, investors, and business partners. Utilizing the market, consumer, and competitive intelligence you get throughout the business planning phase, you may determine how to position your brand most effectively.
Step 3
Choosing the best team for your Dispensary in Maryland
A successful team is the foundation of any business. Both new businesses and established companies benefit the most from it. A strong team allows an organization to scale, grow, and succeed in ways that would be hard for one person to accomplish alone.
The first step in creating a successful team is to hire the right people—those that value teamwork, are goal-oriented, and respect the hierarchical structure that most organizations demand.
Step 4
Choose Your Location With Care
Cannabis sellers are no different from other retailers in that they are aware of how important location is to their success. Finding the ideal location is crucial, but you must also abide by the many rules and legislation imposed by the state and that particular municipality.
Like other states, some location requirements for Maryland include:
- Must not be near schools/daycares/churches.
- It can’t include an outdoor area.
Step 5
Tech Integration with Leading Technology Partner
Every successful cannabis business is built on a solid security and IT infrastructure. As a result, you must contact Cure8 IT experts as soon as your license has been approved and you are ready to open your store. Your store can be completely designed and developed by us. From Wi-Fi to tablets, scanners, printers, security cameras, and more, we offer everything you need to complete your store’s IT infrastructure.
How Can Cure8 Help?
Cure8 is a one-stop tech solution provider that offers cannabis security solutions in Maryland, tailored to meet the unique needs of dispensary operations. By investing in cannabis dispensary security for Maryland, you not only ensure compliance with state regulations but also build trust among your customers.
Cure8 also offers comprehensive dispensary security solutions in Maryland, integrating advanced technologies such as biometric access control and AI-enhanced video analytics to provide state-of-the-art protection for dispensaries. A well-rounded dispensary security plan for Maryland also includes cybersecurity measures to protect customer data and transaction records, ensuring the safety of both physical and digital assets.
Check out more about our solutions here.
