New Jersey Cannabis Laws

Earlier this year, the New Jersey Cannabis Regulatory Commission opened the application process for consumption lounges for Social Equity designated retail businesses. On 2nd April, the application process was expanded to also include all other microbusinesses and Diversely-Owned dispensaries (minority-owned, woman-owned, disabled veteran-owned).

And on July 2nd, 2025, the CRC will open applications for all other Class 5 retail operators. Dispensary owners will need to already have their dispensary license, municipal approval, and comply with all of the regulations, including implementing odor control, air purification, noise reduction, etc to ensure safe consumption.

February 25, 2025: As part of his latest budget plan for 2026, New Jersey Governor Phil Murphy proposed increasing the cannabis social equity excise fee by 6 times, from $2.50 to $15 per ounce. This tax, paid by cultivators, aims to generate an additional $70 million for social service and violence intervention programs. Opponents argue a 500% increase in tax will only make legal cannabis even more expensive, hindering its competitiveness with the black market.

The Cannabis Regulatory Commission (CRC) had already hiked the tax from $1.24 to $2.50 an ounce in December, 2024. And over $6 million collected from this tax remains unspent, awaiting legislative allocation. Murphy also seeks to extend the tax to intoxicating hemp products.

New Jersey remains one of the few states that have legalized recreational cannabis but not home cultivation – and this could change in 2025. In the upcoming general election for governor, candidates from both sides have voiced their opinions.

On the Republican side, two candidates favor home cultivation exclusively for medical users, while two others extend their support to recreational cultivation as well. Among the Democrats, four candidates support home cultivation for both recreational and medical use, while one, former state Senator Steve Sweeney, explicitly backs it solely for medical patients.

Sweeney was the longest-serving Senate president in NJ's history and stated "it is time" to allow them to grow patients' own plants to keep prices affordable. All candidates are vying to succeed term-limited Governor Phil Murphy in the November 2025 election.

To help you navigate New Jersey's cannabis dispensary laws, here are some key laws and regulations you should be aware of:

• Minimum Age: Recreational cannabis sales can be sold to adults aged 21 and older. Medical patients under 21 years old may receive a prescription for cannabis and purchase or have their caregiver purchase cannabis from a medical dispensary.
• Medical Use: Medical marijuana has been legal in New Jersey since 2010 and allows patients and authorized caregivers to access cannabis for medical purposes, under the Jake Honig Compassionate Use Medical Cannabis Act.
• Recreational Use: Recreational cannabis became legal on January 1, 2021, following the approval of the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act.
• Purchase Limits: Dispensaries are allowed to sell up to the equivalent of 28.35 grams (1 ounce) of usable cannabis in each transaction. Adults 21 and above can possess up to 6 ounces of cannabis.
• Home Cultivation: New Jersey currently prohibits growing cannabis at home, in any form.
• Product Categories: A range of cannabis products can be sold, including dried flowers, edibles, concentrates, oils, tinctures, topicals, and more.
• Pricing and Tax: Prices vary by location and product, with transactions subject to a New Jersey sales tax of 6.625% and a social equity excise fee of 2.5%.
• THC Limits: The proposed regulations limit edibles to 10 milligrams of THC per serving and drinks to 5 milligrams. This ensures responsible consumption, especially with cannabis-infused beverages.
• Expansion of Ingestible Cannabis Products: The Cannabis Regulatory Commission (CRC) has proposed new rules to allow an expanded range of ingestible cannabis products, including baked goods, chocolates, butter, jams, and drinks, to be sold in both the medicinal and recreational markets.
• Safety Testing: All cannabis products, including edibles, will be required to undergo third-party testing, including testing for contaminants like salmonella and E. coli, before being sold.
• Consumer Safety: The CRC prioritizes consumer safety and confidence in the regulated cannabis market, taking time to research and ensure the safety of ingestible products.
• Product Regulations: These newly proposed products must adhere to strict regulations, including clear nutrition information, warning labels, expiration dates, child-resistant packaging with no appealing imagery, and must not contain alcohol or nicotine. Products must also be ready to consume and produced by staff trained in food safety.
• Anticipated Market Growth: The introduction of edibles is expected to attract new consumers who prefer alternative consumption methods. The global market for consumables is projected to grow significantly.
• Economic Impact: The expansion of product offerings is likely to drive investment into the state's cannabis industry, including partnerships between brands and existing operators in New Jersey's adult-use cannabis market.
• Market Potential: With the proper regulations, New Jersey has the potential to generate significant revenue from the sale of beverages and edibles, based on the growth of the global consumables market.

• Cannabis is legal for both medical and recreational use in New Jersey.
• Recreational cannabis became legal in January 2021 after the passing of the Marijuana Legalization Amendment.
• On February 22, 2021, New Jersey Governor Murphy signed a constitutional amendment called the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act.
• Medical cannabis was legalized in 2010 via the Compassionate Use Medical Marijuana Act (CUMMA).
• The Medical Marijuana Program (MMP) was fully opened in August 2012 after a two-year delay.
• Licensed sales of recreational cannabis began on April 21, 2022.
• Adults 21+ in New Jersey can possess up to 6 ounces of cannabis.
• Cannabis can not currently be grown at home.

To help you navigate New Jersey's cannabis dispensary laws, here are some key laws and regulations you should be aware of:

• Medical Use: Medical marijuana has been legal in New Jersey since 2010, allowing patients to access cannabis for medical purposes.
• Recreational Use: Recreational cannabis became legal on January 1, 2021, following the approval of the Marijuana Legalization Amendment by voters in November 2020.
• Purchase Limits: Dispensaries are allowed to sell up to the equivalent of 28.35 grams (1 ounce) of usable cannabis in each transaction.
• Product Categories: A range of cannabis products can be sold, including dried flowers, edibles, concentrates, oils, tinctures, topicals, and more.
• Pricing and Tax: Prices vary by location and product, with transactions subject to a New Jersey sales tax of 6.625% and a social equity excise fee.

New Jersey residents who are at least 21 years of age or older and have a valid government-issued ID will be allowed to possess up to 6 ounces of cannabis.

So far, Medical patients were only allowed a purchase limit of 50 g or less and anything above that warranted harsh penalties, but changes will be enacted from Jan 2021, and now an adult can carry up to 170 g of marijuana at any time.

Patients with the following conditions can qualify for medical marijuana use:

• Addiction substitute therapy for opioid reduction
• Amyotrophic Lateral Sclerosis (ALS)
• Anxiety
• Cancer (includes associated chronic pain and/or severe nausea)
• Chronic pain
• Chronic visceral pain
• Crohn’s disease
• Dysmenorrhea (menstrual cramps)
• Epilepsy
• Glaucoma
• HIV/AIDS (includes associated chronic pain and/or severe nausea)
• Inflammatory bowel disease (IBD)
• Migraines
• Multiple Sclerosis
• Muscular Dystrophy
• Opioid dependency
• Post-Traumatic Stress Disorder
• Seizure and/or spasticity disorders
• Tourette’s syndrome

Any terminal illness if a doctor has determined the patient will die within a year Visit the Division of Medical Marijuana for more details.

No, Senate Bill 21 (S21) does not allow New Jersey residents to cultivate cannabis at home. The only legal cannabis in the state will be cannabis grown at a state-licensed cultivation facility, and there will remain stiff criminal penalties for home cannabis growers, as before.

Under New Jersey’s state law, cultivation of ten or more marijuana plants is a felony crime, punishable by a $150,000 fine or up to ten years in prison. However, several candidates running for Governor in the November 2025 general elections have expressed interest in legalizing home cultivation.

New Jersey marijuana users may only consume cannabis in private spaces (such as their homes). However, landlords may prohibit cannabis use on their property. Generally speaking, smoking cannabis is allowed where cigarette smoking is permitted, unless stated otherwise. Driving under the influence of cannabis is prohibited.

The Cannabis Regulatory Commission oversees the licensing for all cannabis businesses in New Jersey including new cannabis retail licenses as well as medical marijuana.

The Cannabis Regulatory Commission (CRC) issues licenses for both medicinal and recreational cannabis business operations in New Jersey. To apply, individuals or entities must generally:

• Be registered to do business in New Jersey registered to do business in New Jersey by the Division of Revenue and Enterprise Services in the Department of the Treasury.
• Possess both federal and state taxpayer-identification numbers.
• Comply with all provisions of N.J.S.A. 24:6I-31 through 56 and N.J.A.C. 17:30 for license applicants.
• Individuals with ownership or decision-making authority listed on the application must be 21 years of age or older.
• At least one significantly involved person in the business must have resided in New Jersey for at least two years as of the date of application.

As of June 2025, New Jersey allows individuals and entities to integrate vertically by applying for different license types. This means that an entity can have a combination of any of the licenses below at the same time:

• a cultivator license
• a manufacturer license
• a retailer license
• a delivery service license

Alternatively, an entity may hold a wholesale and a distributor license simultaneously.

That said, all recreational license holders can only have one business in each specific license class, this means that a single entity cannot have two retailer licenses.

Obtaining an adult-use marijuana retail (Class 5 Cannabis Retailer) license in New Jersey involves a multi-step online application process through the Cannabis Regulatory Commission (CRC) on a continuous, rolling acceptance basis.

We’re broken down this entire process in 5 key phases:

Documentation and Eligibility. You'll need to prepare a robust business plan, detailing your financial strategy, security measures, and operating procedures. Crucially, all key individuals involved in your business must meet eligibility requirements, including passing thorough background checks. Certain criminal convictions can be disqualifying, so it's vital to confirm all team members qualify before proceeding.

Local Municipality Approval: New Jersey law mandates local support, so you must secure your dispensary location with proof of ownership or lease and ensure it complies with local zoning ordinances. Your application, or at least a copy, will be reviewed by the municipality you choose, and their approval (often a resolution or letter) is essential before the CRC grants final state licensure.

Submitting Your Application: The CRC provides an online portal for submitting your application including a lengthy guide with step-by-step instructions on how to navigate the portal.

Review and Approval: The CRC will evaluate your application based on social equity qualifications, the strength of your business plan, and overall regulatory compliance. The review period varies, as it may involve public hearings or requests for additional documents.

The CRC offers two main pathways: a Conditional License or an Annual License. A Conditional License is an interim approval that gives you 120 (or 165 with extension) days to finalize your site and municipal approvals, then convert to an Annual License. The Annual License pathway requires all these elements to be in place at the time of initial application.

Dispensary License: The CRC will conduct a final inspection of your ready dispensary and upon successful review, you'll get your Class 5 Cannabis Retailer License.

It's highly beneficial to engage with the local community throughout this process to foster relationships and ensure all necessary local permits are in order. This also helps to avoid "Cure Letters" (requests to fix application errors), which can delay the process, even for priority applicants. Remember, while there's no deadline, getting your application right the first time is the fastest path to legal operation.

Also Read: How to Open a Dispensary in New Jersey

Editor’s Note: The CRC will open applications for all other Class 5 retail operators on July 2, 2025

The fees for an adult-use cannabis retail license as a Standard Business (non-microbusiness) in New Jersey are as follows:

• Licensing Fee (Class 5 Cannabis Retailer): $10,000
• Application & Approval Fees (Annual License): $2,000, which includes a:
• Application Submission Fee: $400
• Application Approval Fee: $1,600

Applicants can also apply for a retailer license as a microbusiness, the fees for which are:

• Licensing Fee (Class 5 Cannabis Retailer): $2,000
• Application & Approval Fees (Annual License): $1,000, which includes a:
• Application Submission Fee: $200
• Application Approval Fee: $800

Also Read: The Cost of Opening a Dispensary in New Jersey

Like many states, New Jersey has taken significant steps to address historical harms caused by cannabis prohibition and promote inclusive participation in the legal market. One of the primary ways the state does this is through Priority Applications. Businesses that qualify for Priority Applications receive priority review and approval in the application process, regardless of when they apply.

In order to be eligible for Priority Applications, a business must fall into one of these three categories:

• Social Equity Businesses: These are businesses owned by individuals who have a direct connection to communities disproportionately impacted by past cannabis prohibition, including people who have lived in Economically Disadvantaged Areas (low-income areas) for a significant period and meet certain income thresholds, OR individuals with past marijuana-related convictions (even if expunged).
• Diversely Owned Businesses: These are businesses with a certification from the NJ Department of the Treasury as a minority-owned, woman-owned, or disabled veteran-owned business.
• Impact Zone Businesses: These are businesses that are either located within an "Impact Zone" (municipalities identified by law as having higher rates of unemployment, poverty, or past cannabis-related law enforcement activity), OR are owned by residents of an Impact Zone, OR commit to hiring a significant percentage of their employees from Impact Zones.

In addition to Priority Applications, New Jersey has created several social equity rules to help alleviate competitive pressures on disadvantaged businesses and individuals including:

• Social Equity Excise Fee (SEEF): A fee on cannabis cultivators when they sell or transfer products. The revenue from the SEEF is to be used for initiatives such as educational support, economic development, and social support services for those persons and communities harmed by cannabis prohibition. For 2025, the SEEF rate is $2.50 per ounce for both usable and unusable cannabis for manufacturing.
• Grant Programs: The New Jersey Economic Development Authority (NJEDA) has launched grant programs, such as the Cannabis Business Development (CBD) Grant Program ($5 million initiative), to provide financial support to eligible cannabis businesses, with a focus on channeling funds to small businesses and those in Impact Zones.
• 5% of CBD Grant Program funding is made available for businesses operating in NJ-CRC designated Impact Zones. The CBD Grant Program also provides one-time reimbursements of $75,000.
• Office of Diversity and Inclusion: Within the NJ-CRC, this office is charged with establishing practices and procedures to promote inclusion of diverse populations in the cannabis industries and implementing programs to promote equitable inclusion.

Each municipality has its own laws and regulations regarding this, and although the state of New Jersey has legalized recreational cannabis, municipalities are allowed to implement the law as they please. For instance, local regulations may require cannabis businesses to be a certain distance from places of worship, schools, playgrounds, parks, or child daycare facilities.

In addition to location, municipalities can also regulate hours of operation for cannabis businesses in New Jersey.

Licensed adult-use marijuana retailers may sell cannabis to adults aged 21 and older, with a valid government-issued identification card, and employees are required to check purchasers’ IDs before making the sale.

Marijuana stores may sell cannabis, cannabis resin, cannabis products and cannabis extracts, but seedlings, immature marijuana plants and marijuana paraphernalia are prohibited.

Cannabis item packaging is laid out in N.J. Admin. Code § 17:30-16.2 and the regulations stated that all cannabis items will be packaged in fully enclosed child-resistant packaging. The label must include the following information:

• a summary of the product testing results
• any ingredients used in cultivation or production of the cannabis item
• the serving size
• and any warnings required by law

Labels must contain health warnings for consumers urging them to avoid driving or operating heavy machinery while using cannabis, potentially avoid use altogether when pregnant or breastfeeding, and will note that high potency products may present risks to mental health.

For cannabis flower, in addition to the potency from the test results, labels will note whether the flower is high-, moderate-, or low-THC and whether it is high-, moderate-, or low-CBD, consistent with its chemotype.

Packaging and labelling will be prohibited from containing any false or misleading statements, or any imagery that could be attractive to kids, and once established, will contain a universal warning symbol designated by the Commission. will be prohibited from containing any false or misleading statements, or any imagery that could be attractive to kids, and once established, will contain a universal warning symbol designated by the Commission.

Adult-use sales would be taxed at 7%. Municipalities could charge local sales taxes of up to 2%.

The CRC has also levied a Social Equity Excise Fee, which as of June 2025, is set at $2.50 per ounce on marijuana growers.

Home delivery guidelines for cannabis retailers in New Jersey are laid out in NJ Admin Code 17:30-14.8(b). The regulations allow delivery of cannabis products to consumers through their own personnel or through a courier with a “Class 6 Delivery” license.

If using their own personnel for home delivery, the retailer must submit documentation and a letter requesting permission to the CRC.

There is no restriction on where delivery services may deliver but retailers must let the NJ-CRC know where they intend to provide service, and to make that information available to customers.

Delivery of medical marijuana to patients is allowed as well, but the health department requires anyone delivering cannabis to have a GPS tracking system on their vehicles.

The general advertising and marketing restrictions for New Jersey cannabis retailers are laid out in N.J. Admin. Code § 17:30-17.2. We’ve provided a brief summary of these restrictions:

• All advertisements must have reliable evidence that at least 71.6% of the audience is 21 years or older.
• Any advertisement for a cannabis product must include a specific health warning.
• Advertising is prohibited if it targets or appeals to individuals under 21, including using depictions of minors or cartoon characters.
• Ads are not allowed on television or radio between 6:00 A.M. and 10:00 P.M. (online advertising has no hour restrictions).
• No advertising is permitted within 200 feet of any elementary or secondary school grounds, except on the cannabis retailer's own premises.
• Advertisements directed towards location-based devices require an easy opt-out feature and age warnings.
• Billboards are only allowed on the cannabis business's own property.
• Signs in arenas, stadiums, shopping malls, or arcades are only permitted if the site is adult-only.
• Advertisements must not falsely disparage competitors or deceptively claim products are safe solely due to regulation or testing.
• Promoting rapid or overconsumption of cannabis is prohibited, as is any false or misleading statement.
• Cannabis businesses cannot display exterior advertisements for cannabis products (only identifying signage), use commercial mascots outside, or display cannabis visible from outside the premises.
• Price advertising is limited to catalogues, printed lists, or company websites.
• Producing promotional items like T-shirts or novelty items bearing cannabis symbols is generally prohibited, except for cannabis paraphernalia sold to consumers.
• Cannabis businesses must keep records demonstrating their advertising compliance, including audience descriptions and publication venues.

Dispensaries and cannabis stores must track and trace all of their cannabis products for regulatory and compliance reporting requirements. This includes keeping records for:

• identifying the source of each ingredient, including the date of receipt of the ingredient
• vendor’s name and address, name of the ingredient, etc.
• The vendor’s batch number
• lot number of the product and control number used to identify all components in the marijuana product(s)
• the grade and quantity, also mentioned in inventory reports

New Jersey has chosen Metrc as the Adult Use and Medical Seed-to-Sale Tracking System for all cannabis retailers.

Cova's Cannabis Dispensary POS Software and inventory management system includes all the features needed to keep cannabis retailers compliant and is one of the leading cannabis retail POS systems in New Jersey – adhering to all reporting requirements of the state, including:

• ID scanner for age and patient card verification
• Integrated inventory and sales tracking and reporting
• Built-in product equivalency conversions and purchase limit enforcement

• How to Open a Cannabis Dispensary in New Jersey
• How to Apply for a Cannabis Retailer License in New Jersey
• How Much Does it Cost to Open a Cannabis Dispensary in New Jersey?
• Case Study: Pharmacists and Women-Owned Dispensary in NJ
• How to Open a Dispensary in New Jersey Webinar

New Jersey's journey from medical to adult-use cannabis legalization has been marked by constant effort to establish a robust and equitable market. The goal of building a comprehensive regulatory framework is now mostly in place with applications being actively reviewed. However, not every decision was received with excitement and open arms – some, like the proposed six-fold tax increase for 2026 and the ongoing ban on home cultivation, have met with public and industry opposition.

While the CRC has prioritized social equity and established clear pathways for licensure, staying informed about evolving regulations, local ordinances, and market dynamics will be crucial for success in this burgeoning industry. As New Jersey continues to refine its cannabis landscape, ongoing vigilance and adaptability will be key for all stakeholders.