Arizona Cannabis Laws & Dispensary Compliance Guide
Last reviewed: June 14, 2026
Dutchie does not provide compliance advice. Merchants are responsible for their own compliance. External Dutchie compliance documentation may be updated from time to time and has been prepared for informational purposes only, is not intended to provide, and should not be relied on for, tax, legal or compliance advice. Merchants should consult their own tax, legal and compliance advisors to determine how best to operate within the cannabis industry.
Market Type
In Arizona, cannabis is regulated by the Department of Health Services (ADHS). Medical and adult-use cannabis is allowed. Arizona state law allows a visiting qualifying patient with a registry identification card or its equivalent, issued by the qualifying patient's home state, to possess or use marijuana. However, a visiting patient is not authorized to purchase marijuana from an Arizona dispensary because the dispensary is required in statute to access a state verification system before dispensing marijuana.
Inventory & Sales Tracking
Arizona uses the medical marijuana electronic verification system to track medical sales history and to verify medical patient and caregivers have active registrations. However, Arizona does not use any state seed-to-sale traceability system to track adult-use sales or inventory actions. Licensees are free to use their own software to track sales, inventory and other business actions. In lieu of a state traceability system, licensees submit a monthly MET-1 report to the Arizona Department of Revenue (AZDOR).
Purchase Limits
- One [1] ounce of flower, with not more than five [5] grams being concentrate
- Two and a half [2.5] ounces of marijuana in a 14 calendar day period.
Equivalencies
Concentrates and edibles are 1:1 based on weight.
Taxes
Adult-use
5.6% Transaction Privilege Tax (Sales Tax)
16% Excise Tax
Medical
5.6% Transaction Privilege Tax (Sales Tax)
(local tax may apply)
Delivery
- Transactions must be performed in real-time at the point in time and location at which transaction occurs.
- Transactions must be recorded in the licensee’s POS and the medical marijuana electronic verification system at the time dispensary relinquishes possession of the medical marijuana to patient/cg regardless of location
- All sale requirements apply to delivery (ex. verify ID and patient registration, record info required to be entered in electronic verification system, etc) and a dispensary should verify this information one more at the time and location of the delivery
- Cannabis paraphernalia cannot be delivered
Things to Note
- Retailers are required to display the price of each item purchased visibly to the public at each check out location. In other words, when a customer is at the check out register, they must be able to see the price of each item scanned by, or input into, the check out register to allow the customer an opportunity to inquire about a specific price if it does not appear as expected.
State Resources
The ADHS compiles their adult-use rules and regulations here and their medical rules and regulations here.
