Indiana
Medical program active
Last verified: March 2026 · editorial-team
Possession Limit
N/A
Flower (adult use)
Concentrates
N/A
Per transaction
Home Grow
Not permitted
Personal cultivation
Delivery
Not allowed
Licensed delivery
License Types
Other
No cannabis licenses exist in Indiana. The state permits hemp cultivation under the USDA framework, regulated by the Office of Indiana State Chemist. Hemp processors must register but there are no dispensary, cultivation, or manufacturing licenses for THC cannabis.
Est. Fees
Hemp license: $100 application + $500 registration
Processing Time
30–60 days for hemp license only
Tax Structure
Excise Rate
No cannabis excise tax — no legal market exists
Sales Tax
Not applied
Effective Total
N/A
Indiana has no legal cannabis market and therefore no cannabis-specific tax structure. CBD products derived from hemp (under 0.3% THC) are subject to standard 7% Indiana sales tax.
Regulatory Body
Key Statutes
Indiana Code Title 35, Article 48 — Controlled Substances
IC 35-48-4Cannabis remains a Schedule I controlled substance. Possession of any amount is a Class B misdemeanor (up to 180 days jail, $1,000 fine). Prior offenses or possession over 30g elevates to a Class A misdemeanor or felony.
Senate Enrolled Act 516 — Hemp Legalization
IC 15-15-13Legalized hemp cultivation and CBD products with up to 0.3% THC in 2019, aligning with the federal Farm Bill. Does not extend to smokable hemp flower, which Indiana attempted to ban.
HB 1224 — Low-THC Cannabis Oil (Expired)
IC 16-44-2Allowed limited use of CBD oil for treatment-resistant epilepsy. Extremely narrow — never expanded into a broader medical program. Effectively superseded by the hemp law.
For Operators
No legal cannabis market
Indiana has no medical or recreational cannabis program. Period. The state legislature has introduced medical cannabis bills repeatedly — most recently SB 0263 in 2024 — and they keep dying in committee. Republican leadership has blocked floor votes even when polls show majority support among Indiana residents.
The hemp and CBD market operates under the USDA framework, managed by the Office of Indiana State Chemist. Smokable hemp has been a contentious issue — the state tried to ban it in 2019 but backed off after industry pushback and a court challenge. CBD product sales at gas stations and retail shops are widespread but unregulated for quality.
Border dynamics
Indiana sits between Illinois (fully legal) and Michigan (fully legal). This creates significant cross-border traffic. Illinois dispensaries near the Indiana border — especially in Danville, Effingham, and the Chicago suburbs — report heavy Indiana customer traffic. Michigan's market along the northern border sees the same pattern. Indiana residents spend hundreds of millions annually in neighboring states' cannabis markets.
For Consumers
Cannabis is illegal in Indiana
Possession of any amount of marijuana is a crime in Indiana. Even a small amount — a joint, a cartridge, an edible — can result in a Class B misdemeanor: up to 180 days in jail and a $1,000 fine. If you have a prior conviction or possess more than 30 grams, charges escalate to Class A misdemeanor or felony territory.
Concentrates carry heavier penalties
Indiana law treats concentrates (hash, wax, vape cartridges) under hash oil statutes, which can trigger felony charges even for small amounts. A single THC vape cartridge purchased legally in Illinois can result in a Level 6 felony if found on you in Indiana. This is not theoretical — it happens regularly at traffic stops on I-65 and I-70.
CBD is legal but buyer beware
Hemp-derived CBD products with under 0.3% THC are legal. You'll see them everywhere — gas stations, grocery stores, supplement shops. But Indiana doesn't require third-party testing for retail CBD products, so quality varies wildly. If you're buying CBD in Indiana, look for products with a certificate of analysis from an independent lab.
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