New Mexico legalized medical cannabis in 2007 under the Lynn and Erin Compassionate Use Act and adult-use cannabis in 2021 through the Cannabis Regulation Act (HB 2), signed by Governor Lujan Grisham on April 12, 2021, with retail sales beginning April 1, 2022. The Cannabis Control Division (CCD), within the Regulation and Licensing Department, regulates all commercial cannabis activity. As of 2026, over 1,000 licensed cannabis retailers serve a population of approximately 2.1 million. New Mexico has no license caps and offers micro-producer licenses for small operators, resulting in a highly competitive and accessible market. The state imposes a 12% cannabis excise tax that increased to its full rate in July 2025. License types include producer, manufacturer, retailer, testing laboratory, transporter, and vertically integrated microbusiness.
Ask the Expert about New MexicoNew Mexico Statutes Chapter 26, Article 2C — Cannabis Regulation Act
Cannabis Control Division (CCD), New Mexico Regulation and Licensing Department