Illinois legalized medical cannabis in 2013 under the Compassionate Use of Medical Cannabis Program Act and adult-use cannabis on January 1, 2020, through the Cannabis Regulation and Tax Act (Public Act 101-0027), making it the first state to legalize adult-use cannabis via legislative action rather than ballot initiative. The Illinois Department of Financial and Professional Regulation (IDFPR) licenses dispensaries, while the Department of Agriculture oversees cultivation and processing. As of mid-2025, approximately 363 adult-use licenses have been issued, with 260 operational dispensaries. Illinois has generated over $1 billion in annual adult-use sales. The state imposes a tiered excise tax based on THC content: 10% for products under 35% THC, 20% for infused products, and 25% for products over 35% THC, plus a 7% wholesale tax. Social equity is a centerpiece of the program.
Ask the Expert about IllinoisCannabis Regulation and Tax Act (410 ILCS 705) — Public Act 101-0027
Illinois Department of Financial and Professional Regulation (IDFPR)