Verify age, identity, and tax eligibility — all in one seamless, privacy-first platform. Grow your cannabis ecommerce business across state lines without tax headaches. Token of Trust automates excise and sales tax compliance so you can stay audit-ready, reduce risk, and scale faster.
A single product can trigger multiple tax rates — depending on what it is, where it's sold, and how strong it is. Excise tax. Sales tax. Use tax. Jurisdictional rules. Potency-based logic. Automation applies the right tax logic across every sale channel and keeps your business audit-ready.
See all industriesIn the cannabis and hemp industry, most transactions are taxed twice — through both excise tax and sales & use tax. Understanding how each works is key to staying compliant.
Cannabis-specific tax applied before or during the sale. Covers THC flower, concentrates, vapes, tinctures, and intoxicating hemp cannabinoids. Calculated by price, weight, or potency depending on the state — often built into the product price and remitted by the retailer or distributor.
Retail-focused tax added at checkout. Applies to most consumer purchases, including hemp-derived CBD, and is based on retail price — often stacked on top of excise tax. "Use tax" applies when sales tax isn't collected (e.g., out-of-state transactions).
Configure the same verification and compliance core for the rules of every state you sell in.
Confirm every buyer is eligible before checkout with privacy-first age and identity checks built for age-restricted retail.
Apply the right excise, sales, and use tax across products, jurisdictions, and channels — keeping calculations accurate and your business audit-ready.
256-bit SSL, minimal data retention, and GDPR-aligned handling — we never sell your data.
We look at your product catalog and state footprint to map how every SKU is defined and taxed in each jurisdiction.
We apply percentage-of-price, weight-based, and potency-based rules — plus local add-ons — so the right tax is calculated on every sale.
Verification and tax records are captured and retained, keeping you compliant and audit-ready as you scale across state lines.
Excise tax is cannabis-specific and may be based on price, weight, or THC potency. Sales tax applies broadly to retail purchases and is often stacked on top of excise tax. Many states require both.
Not always. Non-intoxicating CBD may be exempt in some states or taxed like a standard consumer product under sales tax. Intoxicating hemp cannabinoids (e.g., Δ8-THC, Δ10-THC) are often taxed like marijuana and may trigger excise tax.
Yes. Recreational cannabis typically carries full excise and sales tax, while medical cannabis may qualify for reduced or exempt rates depending on the state.
Cities and counties often add their own cannabis-specific excise taxes (2–5% of the sale price). These stack on top of state excise and sales taxes, creating multiple layers of compliance.
Use tax applies when sales tax wasn't collected at purchase — for example, an out-of-state CBD order shipped into a taxable state. Businesses are responsible for tracking and remitting it.
Let's take a look at your product catalog and state footprint. We'll show you how Token of Trust can simplify your tax compliance — and verify age and identity in the same flow.