Virginia lawmakers approved a two-year state budget on Monday, and buried in the $205 billion plan is the framework that finally puts a number on the Virginia cannabis tax. Retail weed sales start July 1, 2027, taxed at 6% by the state, with room for local add-ons. The Senate passed the budget 23-16 and the House 71-22. It now heads to Gov. Abigail Spanberger.
The budget does more than set a rate. According to Virginia Mercury, a Part 5 amendment makes the retail market permanent, so a future administration can't quietly let it lapse. After years of stop-and-start cannabis policy in Virginia, that is the piece operators have been waiting on.
What the Virginia cannabis tax actually looks like
The state rate starts at 6% when stores open in 2027 and climbs to 8% in 2029. On top of that, cities and counties can add their own tax of 1% to 3.5%. So a Richmond shopper could pay close to 10% once local rates and the standard sales tax stack up.
That keeps Virginia below the combined cannabis tax rates in states like California and Washington. Lawmakers framed the lower rate as a way to pull buyers out of the illicit market rather than price them back into it.
A capped market, launching in 2027
The plan limits the state to 350 retail stores. That is a hard cap, and it covers all of Virginia, not just Richmond or Northern Virginia. With roughly 8.8 million residents in the Commonwealth, those licenses will be competitive, and equity applicants are written into the framework.
Stores won't open the day the budget is signed. The Cannabis Control Authority still has to stand up a licensing process, and the framework routes support to small and equity-owned businesses so the market isn't captured by a few large operators on day one. Expect license activity well before any storefront opens.
The budget also sets a $250 civil penalty for public consumption, which doesn't take effect until 2027. Sen. Lashrecse Aird, D-Henrico, said the aim was enforcement that doesn't punish ordinary buyers or feed the illicit market.
The cannabis section was one piece of a budget that drew most of its headlines for a new tax on data centers. Lawmakers had been gridlocked for months, and passing the plan keeps state government funded past July 1. For the cannabis industry, the win is less about the rate and more about certainty. A permanent market with a known tax is something Virginia operators couldn't count on a week ago.
What it means for Richmond right now
Nothing changes today. Retail stores are still about two years out, and the rules around licensing, the Cannabis Control Authority, and local zoning all have to be built first. Until then, the legal path for adults in Richmond is hemp-derived THC, which is already sold and delivered across the city.
That gap is worth understanding. The 2027 market will tax and regulate marijuana sold in licensed stores. Hemp-derived delta 9 THC products operate under a different framework and are legal to buy in Richmond today. For most people that means delta 9 gummies and other edibles, not a trip to a dispensary that won't exist for two more years.
What to watch next
Spanberger can sign the budget, send back amendments, or veto line items, and the whole thing has to be settled by July 1, when the new budget takes effect. Watch for her response in the coming days. After that, the Cannabis Control Authority starts writing the rules that decide how 2027 plays out: who gets the 350 licenses, how delivery is handled, and whether Richmond-area localities add a tax of their own.
Richmond locals: the 2027 retail market is still two years off. CCC runs same-day THC delivery within a 15-mile radius of Monroe Park. Browse the menu at chestercanna.co.
