The Agriculture Improvement Act, better known as the Farm Bill of 2018, allotted nearly $1 trillion dollars in funding, yet it is more famous for something else – legalizing CBD at the federal level. But even then, states still had the authority to regulate or even ban its sale and use within their borders.
This means that as of 2025, there is a complex and often confusing legal landscape that governs the sale and consumption of CBD products.
To help you navigate this legal environment, we have created a comprehensive guide to where CBD is legal in 2025 – complete with maps, state-by-state breakdowns, and insights for both consumers and aspiring cannabis retailers. Whether you’re planning your next trip or exploring where to launch a dispensary, this guide covers everything you need to know about the current CBD laws across the U.S. and Canada.
Also Read: Where is Weed Legal?
Disclaimer: This page is meant to educate readers and spread awareness only – it has been fact-checked and is current as of September 15, 2025. It is not intended to be, nor should be considered legal advice. Given the evolving nature of cannabis regulations, legal advice of any nature should be sought from legal counsel.
Where is CBD Legal in the United States
CBD is legal across the United States at the federal level if it is derived from hemp and contains less than 0.3% THC, but individual state laws determine how it can be sold and used. There are 35 states where hemp-derived CBD products are fully legal with no distinctive conditions or restrictions.
The table below provides a clear, state-by-state breakdown of where CBD is legal in the U.S. and under what conditions.
|
State |
Legality Conditions/Restrictions |
|
Alabama |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license for specific conditions. |
|
Alaska |
CBD is fully legal. |
|
Arkansas |
Hemp-derived CBD containing less than 0.3% THC is legal. |
|
Arizona |
Hemp-derived CBD containing less than 0.3% THC is legal. |
|
California |
CBD is fully legal. |
|
Colorado |
CBD containing less than 0.3% THC is legal. |
|
Connecticut |
Hemp-derived CBD containing less than 0.3% THC is legal. |
|
Delaware |
Hemp-derived CBD containing less than 0.3% THC is legal with a medical prescription. |
|
Florida |
Hemp-derived CBD containing less than 0.3% THC is legal with a medical prescription. |
|
Georgia |
Hemp-derived CBD containing less than 0.3% THC is legal. THC oil with up to 5% THC available for specific medical conditions. |
|
Hawaii |
Hemp-derived CBD containing less than 0.3% THC is legal with a medical prescription. |
|
Idaho |
Industrial hemp-derived CBD with 0% THC legal. |
|
Illinois |
CBD is fully legal. |
|
Indiana |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license. |
|
Iowa |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license for specific conditions. |
|
Kansas |
Hemp-derived CBD with 0% THC legal. |
|
Kentucky |
Hemp-derived CBD containing less than 0.3% THC is legal. |
|
Louisiana |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC CBD oil is available with a medical cannabis license for specific conditions. |
|
Maine |
CBD is fully legal. |
|
Maryland |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license. |
|
Massachusetts |
CBD is fully legal. |
|
Michigan |
CBD is fully legal. |
|
Minnesota |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license. |
|
Mississippi |
CBD containing less than 0.5% THC is available with a medical cannabis license for specific conditions. |
|
Missouri |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license. |
|
Montana |
CBD is fully legal. |
|
Nebraska |
Hemp-derived CBD containing less than 0.3% THC is legal. |
|
Nevada |
CBD is fully legal. |
|
New Hampshire |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license for specific conditions. |
|
New Jersey |
CBD is fully legal. |
|
New Mexico |
CBD is fully legal. |
|
New York |
CBD is fully legal. |
|
North Carolina |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license for specific conditions. |
|
North Dakota |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license. |
|
Ohio |
CBD is fully legal. |
|
Oklahoma |
Hemp-derived CBD containing less than 0.3% THC is legal. |
|
Oregon |
CBD is fully legal. |
|
Pennsylvania |
CBD is fully legal. |
|
Rhode Island |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license. |
|
South Carolina |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license for specific conditions. |
|
South Dakota |
Hemp-derived CBD containing less than 0.3% THC is legal. |
|
Tennessee |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license for specific conditions. |
|
Texas |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license for specific conditions. |
|
Utah |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license. |
|
Vermont |
CBD is fully legal. |
|
Virginia |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license. |
|
Washington |
CBD is fully legal. |
|
West Virginia |
CBD is fully legal. |
|
Wisconsin |
Hemp-derived CBD containing less than 0.3% THC is legal. Marijuana-derived CBD is available with a medical cannabis license. |
|
Wyoming |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license. |
|
Puerto Rico |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license. |
|
U.S Virgin Islands |
CBD containing less than 0.3% THC is legal. CBD containing more than 0.3% THC is available with a medical cannabis license. |
How Many States Have Legalized CBD?
Most states in the United States have legalized hemp-derived CBD after the 2018 Farm Bill, but a handful still limit or ban it. In total, 35 states allow CBD without major restrictions, while the rest apply tighter controls — limiting CBD to medical patients, enforcing stricter THC thresholds, or restricting certain product forms.
The majority of states in the United States legalized hemp-derived CBD with the farm bill, although there were some that introduced conditions for legality and others that banned it outright.
CBD Legality Map
The map below provides a clear visual guide showing where CBD is fully legal, conditionally legal, or restricted – a state-by-state breakdown for the entire United States.
Source: Cannabis Laws for Dispensaries in U.S. by State
How Farm Bill Affects CBD Retail Businesses?
By removing hemp from the Controlled Substances Act and legalizing hemp and its derivatives such as CBD, the Farm Bill opened up new avenues for commerce and paved the way for a multi-billion dollar CBD retail industry – from agricultural production to interstate shipping and retail sales. Today, CBD products can be found everywhere from small mom & pop stores to major retailers like Walgreens and CVS.
But the bill wasn’t a free-for-all. It created a new federal regulatory framework under the USDA, mandating that hemp be tested for THC content and that producers be licensed. Yet at the same time, the bill created, what many consider to be, a loophole that has become a source of contention. The Farm Bill’s definition of hemp, based on a 0.3% delta-9 THC dry weight limit, inadvertently allowed for the proliferation of intoxicating products derived from other cannabinoids like delta-8 THC, which are synthesized from legal hemp.
This has prompted a backlash from both state and federal lawmakers. In Texas, for example, there have been multiple legislative efforts to ban most consumable hemp-derived THC products. On September 10, 2025, Texas Gov. Greg Abbott, who vetoed Senate Bill 3, (which would have banned many hemp-derived THC products completely), favors regulation over a total ban.
On September 10, 2025, he issued an executive order to regulate the hemp market. Although the timeline isn’t clear, the executive order includes the following key changes:
- Requiring liquor-style ID checks.
- Ban sale (and possibly entry into business) to people under 21.
- Mandate THC potency testing.
- Establish new labelling requirements and distance restrictions from schools.
Most of these requirements already exist in the broader cannabis industry, and CBD retailers in Texas can stay ahead by using integrated POS and compliance software like Cova, with built-in ID scanner, age verification, and more.
There is some push to close the "hemp loophole." on the federal level as well. One proposed legislation seeks to redefine hemp based on a total THC content (including all isomers and THCA), which would effectively make many of these low-dose psychoactive products illegal.
That said, less than a handful of states have challenged hemp regulations and while legislative changes are on the table, the push for change is a response to growing consumer demand. In other words, while businesses may have to adapt to narrowing gray areas in the industry, both hemp and CBD are here to stay.
Where is CBD Legal in Canada
CBD oil is legal everywhere in Canada, provided it is purchased from an authorized retailer. Legally, it is treated the same way as other cannabis products, including seeds, plants, and dried cannabis.
|
USA |
Canada |
|
|
Federal Status |
Legal, if derived from hemp with ≤0.3% THC |
Legal, but production and distribution is strictly regulated |
|
Source |
CBD from marijuana is federally illegal. |
No distinction between hemp- and marijuana-derived CBD. |
|
Retail Sales |
Widely available (online/offline) but legality depends on state laws. |
Available (online/offline) through government-authorized retailers. |
|
THC Level |
Federally, THC must be ≤0.3% but some states allow more. |
THC content varies depending on the license type. |
|
Governing Law |
Farm Bill 2018 |
Cannabis Act of 2018 |
The key difference from the U.S. is that in Canada, all CBD is regulated the same way, whether it comes from hemp or marijuana – meaning the legal status of CBD is not determined by its source. Everything falls under the Cannabis Act of 2018.
This also means that only licensed producers can grow, extract, and manufacture CBD products under stringent rules, either from industrial hemp or other cannabis sources. Additionally, different licenses allow different amounts of THC in CBD.
Once extracted and manufactured, authorized retailers can sell products containing CBD oil as one of the 5 cannabis classes that can be legally sold in Canada as of 2025.
States with Easy Access to CBD: Hemp-Friendly States for Shoppers
Based on current trends and industry insights, the following states are generally considered among the best for purchasing legal CBD-based products in 2025:
-
Oregon: Like other states with fully legal CBD, Oregon offers high-quality CBD derived from both hemp and marijuana, at low prices in numerous retail stores spread throughout the state.
-
California: Despite more regulations surrounding CBD than some other CBD-friendly states, the sheer amount of accessibility (and acceptability) of CBD stores in California makes it one of the best states for shoppers.
Also Read: California Cannabis Laws
-
Colorado: Shoppers can find a wide variety of CBD products at low prices for both medical and recreational use, including smokable hemp, supplements, dietary supplements, and even cosmetic products.
Also Read: Colorado Cannabis Laws
Best States to Start a CBD Business: Opportunities for CBD & Hemp Retailers
Despite most states making CBD legal in some form, the decision on where to launch your CBD business is much more nuanced. Taking into consideration local politics, market maturity, and licensing availability, here are the top CBD-friendly states that you should keep an eye on:
1. Illinois: Perhaps not as talked about as some other states, CBD in Illinois is fully legal regardless of where it’s derived from (although it must be made in the state itself). And other than a recent transition from BioTrack with Metrc, Illinois’ regulatory landscape is relatively stable too.
Also Read: Illinois Cannabis Laws
2. Minnesota: Minnesota recently introduced a more structured licensing process for CBD and hemp retailers. The new Chapter 342 rules bring greater clarity and legitimacy to the industry, giving compliant businesses a reliable path into a rapidly expanding THC and CBD market.
Also Read: Minnesota Hemp Licensing & Registration Changes 2025: A Guide for CBD & Hemp Retailers
3. New Mexico: New Mexico has consistently been a top performer in Cova market studies, and even with larger companies moving into the market in 2025, there is still room for new entrants in the CBD space who can offer something unique.
Also Read: New Mexico Cannabis Laws
4. Michigan: Michigan already leads the country in monthly cannabis sale,s but there’s still room for more. Michigan also offers relative stability, business-friendly legislation (including low taxes), and a large market of CBD users.
Also Read: Michigan Cannabis Laws
5. Texas: Gov. Greg Abbott’s executive order signals a shift to regulation over prohibition. The proposed rules, like ID-based age checks, become easy with integrated POS software such as Cova – and may ultimately strengthen the CBD market by eliminating non-compliant operators.
Overall, CBD consumption trends paint an encouraging picture for business owners. Almost every state has retail opportunities in some form, even states historically tough on cannabis like Texas and North Carolina.
While regulations in these markets may seem stricter, the higher barriers to entry prevent overcrowding. For entrepreneurs who adapt quickly, invest in compliance tools, and stay ahead of shifting laws, the reward can be a larger market share and long-term profitability – high risk, higher returns.
That said, regardless of which state you choose to start your CBD business in, one thing that all retailers need is a seamless and reliable shopping experience.
With almost a decade of experience working with countless cannabis dispensary owners across North America, Cova Software has now made POS & Payments available for CBD & Hemp retailers. Our award-winning tech offers secure, fast, and compliant point of sale and payment processing for high-risk businesses.
Learn more or schedule your demo today. Our team of experts will help you understand the capabilities of our award-winning POS system and how it can meet (and exceed) your business’s unique needs.