Maryland has quickly emerged as one of the fastest-growing cannabis markets in the U.S. After the Maryland State Senate approved medical cannabis access in 2014 through Senate Bill 923, the industry steadily expanded.
In July 2023, Maryland legalized recreational (adult-use) cannabis following the passage of House Bills 1 and 837—and the state has already seen cannabis sales surpass $700 million annually.
If you’re an entrepreneur or investor exploring how to open a dispensary in Maryland, this guide will walk you through the state’s cannabis laws, licensing process, costs, and requirements so you can position yourself for success in this booming market.
Can You Open a Dispensary in Maryland Right Now?
At present, the Maryland Cannabis Administration (MCA)—formerly known as the Maryland Medical Cannabis Commission (MMCC)—is not accepting new dispensary license applications.
The last round of dispensary licenses was pre-approved, and applicants are currently completing stage two requirements, including:
- Background checks
- Regulatory compliance
- Local zoning approvals
- Facility construction
Future application windows are expected in 2025, with a strong emphasis on social equity licensing. This means priority will likely be given to minority-owned businesses and applicants from communities disproportionately affected by past cannabis prohibition.
👉 Tip: Preparing your business plan, funding, and compliance strategy now will give you a head start once applications reopen.
Maryland Cannabis Possession & Purchase Limits
Whether you’re planning to open a dispensary or become a consumer, it’s essential to understand Maryland cannabis possession limits:
For Adult-Use (21+):
- Up to 1.5 ounces of cannabis flower
- Up to 12 grams of concentrates (oils, waxes, etc.)
- Up to 750 mg of THC in infused products (edibles, tinctures, etc.)
For Medical Patients:
- Up to 120 grams (4.2 ounces) of cannabis flower per month, or
- Up to 36 grams of THC in a 30-day supply (based on medical need and physician recommendation)
⚠️ Cannabis must be purchased from licensed dispensaries. It remains illegal to consume cannabis in public, drive under the influence, or transport cannabis across state lines.
Current Cannabis Laws in Maryland
- Adults (21+) can legally purchase and possess recreational cannabis.
- Patients with qualifying conditions can access medical cannabis through MCA-approved dispensaries.
- Public consumption of cannabis is prohibited.
- Businesses or individuals can own or have an interest in up to four dispensaries.
- Dispensary licenses last six years initially, with four-year renewals.
- The MCA actively inspects dispensaries and can revoke licenses for non-compliance.
Maryland Cannabis Market Outlook
Maryland’s cannabis market is one of the most promising on the East Coast. Key stats:
- Medical cannabis sales reached $600M in 2021.
- Combined sales (medical + recreational) surpassed $700M in 2024.
- Industry analysts project sales could exceed $1.3B by 2025.
Maryland’s proximity to major cities like Washington, D.C. and Philadelphia gives it a strategic edge, attracting both in-state and out-of-state customers.
Types of Cannabis Licenses in Maryland
If you’re planning how to open a dispensary in Maryland, you’ll need to understand the available license types:
- Grower License – Cultivate cannabis commercially
- Processor License – Manufacture products like concentrates, edibles, topicals
- Dispensary License – Sell cannabis to medical patients and adult-use consumers
Fees:
- Stage 1 Application Fee: $1,000
- Stage 2 Application Fee: $4,000
- Licensing Fee (6 years): $80,000
- Estimated Startup Costs: $500,000+
Step-by-Step: How to Open a Dispensary in Maryland
Even though applications aren’t open yet, here’s what you need to prepare:
1. Understand Cannabis Laws
Familiarize yourself with Maryland cannabis regulations to ensure full compliance.
2. Develop a Scalable Business Plan
Your business plan should include:
- Market & competitive analysis
- Sales & marketing strategy
- Financial forecasts
- Brand positioning strategy
3. Build the Right Team
Hire a skilled team with expertise in cannabis compliance, operations, and retail.
4. Choose the Right Location
Dispensaries cannot be near schools, daycares, or churches, and must meet local zoning requirements.
5. Secure Technology & Security Infrastructure
A strong IT and security system is mandatory for compliance. This includes POS systems, cameras, biometric access controls, and cybersecurity.
Taxes on Cannabis in Maryland
- Medical cannabis purchases are exempt from state sales tax.
- Adult-use cannabis is taxed at 9% of retail price.
- Revenue funds community reinvestment, public health, and business assistance.
Final Thoughts: Preparing to Open a Dispensary in Maryland
The cannabis market in Maryland is rapidly expanding, with billions in projected revenue. If you’re wondering how to open a dispensary in Maryland, the key steps are:
- Stay updated on MCA licensing announcements for 2025.
- Build a solid business plan now.
- Understand compliance, tax, and social equity requirements.
- Secure funding and a strong team.
With preparation, you’ll be ready to seize opportunities as soon as Maryland reopens applications for new dispensary licenses.