Illinois 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 Illinois, adult-use cannabis is regulated by the lllinois Cannabis Regulation Oversight Officer (CROO) and medical cannabis is regulated by the Department of Health. Illinois does not allow out-of-state medical patients to purchase from medical dispensaries.
METRC & Inventory
Illinois currently uses METRC as their seed-to-sale state traceability system. In Illinois, all inventory actions must be reported to the state system in real time. Additionally, medical patient information and purchases are also tracked in the Illinois Cannabis Tracking System.
Purchase Limits
Adult-use
- 60 g Flower
- 10 g Concentrate and
- 1000 mg of infused cannabis
- 30 g flower
- 5 g Concentrate and
- 500 mg of infused cannabis
Medical
- 2.5 Oz per 14 Days
- Minor Patients (under 18) are limited to only cannabis infused products (purchased by caregiver)
Taxes
Adult Use Sales Tax
Illinois taxes adult-use cannabis at retail with a sales tax that varies by product type and potency. A separate 7% cultivation excise tax applies at the wholesale level.
- Cannabis flower, inhalables including vapes and infused prerolls (Under 35% THC) - 10% Sales Tax
- Cannabis flower, inhalables including vapes and infused prerolls (Over 35% THC) - 25% Sales Tax
- Infused Cannabis Products (Edibles, tinctures, topicals, beverages) - 20% Sales Tax
- Local county taxes may also apply (which vary)
Medical Sales Tax
1% State Sales Tax.
Adult-Use and Medical Cultivation Taxes
The Cannabis Cultivation Privilege Tax is imposed at the rate of 7% of the gross receipts from the first sale of cannabis by a cultivator.
You may find information on cannabis taxation at the Illinois Department of Revenue page.
Delivery
Things to Note
- Drive-through and curbside pickup are now permitted for dispensaries.
- SB 3222 which was signed into law in June 2026 creates a dual licensing pathway: existing adult-use licensees may obtain a medical dispensing organization license at the same address
Privacy, HIPAA compliance:
- Consent Required to collect customer information - adult-use dispensaries are not permitted to retain customer information obtained from an customer’s identification without customer consent
- Illinois requires HIPAA compliance for medical dispensaries
State Resources
CROO compiles their rules and regulations here.
