Texas Cannabis Laws

New Lawsuit Filed over Total THC Potency Calculation

20 Aug 2026 - A Travis County lawsuit filed in August 2026 challenges DSHS's authority to impose the total-THC formula. The hearing is scheduled for 28 August and the outcome could temporarily change what hemp products Texas stores can sell and what consumers can buy

Federal Court Refuses to Block the Delta-8 Ban

August 9 – U.S. District Judge Jeffrey Brown (Southern District of Texas) denied an emergency motion to pause the state's Delta-8 ban, finding plaintiffs were unlikely to succeed on their due process and Commerce Clause claims. The ban remains in effect while the federal lawsuit continues.

U.S. Senate Passes Stopgap with Hemp Delay Provision

August 8 - The Senate voted 90-6 to pass a funding measure that would delay the federal total-THC ban on natural hemp products from November 12 to December 11. This does not affect synthetic cannabinoids which remain banned.

Delta-8 Ban Takes Effect & Federal Lawsuit is Filed

July 31 – DSHS's reinstated controlled-substance definitions took effect, making Delta-8, Delta-10, HHC, THC-O, and THCP Schedule I substances in Texas. Possession of any amount is now a state jail felony carrying 180 days to two years in a state jail and a fine of up to $10,000, with escalating charges at higher quantities. On the same day, a group of hemp businesses filed suit in the U.S. District Court for the Southern District of Texas (Galveston Division) seeking a federal injunction against enforcement.

DSHS Publishes Reinstated Schedule I Definitions in the Texas Register

July 10 – Following the Supreme Court's May 1 ruling, DSHS published the 2021 controlled-substance definitions in the Texas Register, giving industry a 21-day runway to comply before the July 31 effective date.

15th Court of Appeals Lifts the Industry's Temporary Injunction

June 5 – The appellate court granted the State's motion to stay the temporary injunction, restoring every provision of the March 31 DSHS rules while the appeal proceeds: the Total THC standard, the fee hikes, transport restrictions, and daily-penalty authority.

Texas Supreme Court Rules on Delta-8 While Trial Court Grants Injunction

May 1 – The Texas Supreme Court ruled in DSHS v. Sky Marketing Corp. that DSHS validly classified manufactured Delta-8 THC as a controlled substance in 2021, ending nearly five years of injunction-protected sales and setting the stage for the July 31 ban.

Separately and on the same afternoon, Travis County Judge Daniella DeSeta Lyttle granted a temporary injunction blocking the March 31 DSHS rules after a three-day evidentiary hearing — a protection that would hold for only 35 days before the appeals court lifted it on June 5.

DSHS Rules Take Effect

March 31 – New consumable hemp rules under 25 TAC Chapter 300 went live, fundamentally reshaping the Texas market overnight. The rules introduced a Total THC testing formula that counts THCA (at 87.7% conversion), raised annual licensing fees from $155 to ~$5,150 for retailers and $258 to ~$10,300 for manufacturers, restricted interstate transport of certain hemp ingredients, and established daily penalty authority for violations. Smokable hemp and THCA flower became non-compliant the moment the rules hit.

How Texas Got Here (Previous Hemp Updates between 2025-26)

The regulatory back-and-forth of 2026 was set in motion by a year of legislative failure and executive improvisation:

• June 22, 2025 – Governor Abbott vetoed SB 3, a total ban on hemp-derived THC products that had passed both chambers, calling it constitutionally vulnerable and likely to be "dead on arrival in court."
• July – September 2025 – Abbott called two special sessions to craft a regulatory framework. Both failed when the House refused to pass the Senate's ban-oriented bills (SB 5 in the first session, SB 6 in the second), leaving the state without legislation.
• September 1, 2025 – SB 2024 took effect, banning the sale and marketing of all cannabinoid-containing vape products as a Class A misdemeanor (up to one year in jail, $4,000 fine per offense).
• September 10, 2025 – With the legislature deadlocked, Abbott issued Executive Order GA-56 directing DSHS, TABC, and DPS to impose a statewide 21+ purchase age, mandatory ID verification, and coordinated enforcement — the executive action that ultimately produced the March 31, 2026 DSHS rules.
• November 12, 2025 – President Trump signed the FY2026 Agriculture Appropriations Act (P.L. 119-37), which redefines "hemp" at the federal level to include total THC, with a 365-day implementation window ending November 12, 2026.

Texas Medical and Recreational Purchase Rules 

An overview of the current marijuana and hemp-derived consumable laws in Texas as of 2026.

What hemp-derived products are still legal to sell and possess in Texas? 

As of August 28, 2026, the following remain legal for adults 21 and above:

• CBD tinctures, oils, topicals, and capsules (≤0.3% Total THC)
• Hemp-derived Delta-9 THC gummies, edibles, and beverages (≤0.3% Total THC on dry weight basis)
• CBG, CBN, and other non-THC cannabinoid products

The following are banned:

• Manufactured Delta-8, Delta-10, HHC, THC-O, THCP products – Schedule I felony (July 31, 2026)
• THCA flower and smokable high-THCA hemp – fails Total THC test (March 31, 2026 rules in effect)
• All cannabinoid-containing vapes – Class A misdemeanor to sell (SB 2024, September 1, 2025)

Editor's Note: Hemp-derived Delta-9 products at or below 0.3% total THC were never part of either the state-court or federal-court fight and remain legal. However, the federal November 2026 redefinition may impact these products if Congress does not act.

Who can buy hemp products in Texas?

Only adults aged 21 and older with a valid government-issued ID can purchase consumable hemp products. 

What is the Texas Compassionate Use Program (TCUP) and who qualifies?

Texas Compassionate Use Program (TCUP) is the state’s medical cannabis program. Following House Bill 46 (signed June 2025), the program was significantly expanded into a legitimate medical cannabis program – making Texas the 40th state to legalize cannabis for medical use.

Texas does not issue medical marijuana cards – the prescription is entered directly into the Compassionate Use Registry of Texas (CURT) by the physician. Qualifying conditions now include:

• Epilepsy and seizure disorders
• Cancer (all forms)
• PTSD
• Chronic pain and inflammatory bowel disease
• Crohn's disease
• ALS, MS, and other neurodegenerative diseases
• Autism
• Traumatic brain injury (TBI)
• Terminal illness
•  Hospice and palliative care 
• Spasticity

As of 2026, the state is expanding from three original licensees toward up to 15 dispensing organizations statewide, as required by HB 46.

Retail Cannabis & Hemp Licensing in Texas

Everything you need to know about opening a hemp or CBD retail location in Texas.

What licenses are required to sell hemp-derived products in Texas?

Potential operators can apply for a hemp license online at the DSHS website. Under the March 2026 rules, there are currently two licenses available:

• A DSHS Retail Hemp Registration for retailers with an annual fee of $5,150 per location (previously $155).
• A DSHS Manufacturer/Processor License for Manufacturers and Processors with an annual fee of $10,300 per facility (previously $258).

A single license is only an application for one physical location/facility.

What is the licensing process for getting a Retail Hemp Registration in Texas?

Here is what retail operators need to do, per DSHS's consumable hemp program:

• Confirm Eligibility: You cannot hold a registration if you owe outstanding fees to DSHS, or if you have been convicted of a felony related to a controlled substance within the past 10 years.
• Apply Online: Registrations are submitted through the DSHS Business and Professional Licenses portal. Each physical retail location requires its own registration. DSHS allows a single registrant to cover multiple locations under one filing.
• Prepare Required Documents: The application requires a legal description of your property and its GPS/GIS coordinates, a property owner consent letter, and the applicable registration fee of $5,150 per location.
• Re-apply Annually: Unlike retail licenses in other states, the registrations in Texas expire after one year and must be renewed. DSHS may inspect registered locations at any time, with or without advance notice.

For the full checklist, see the DSHS Consumable Hemp Product License Checklist (PDF).

Are there location restrictions for hemp retail stores in Texas?

No statewide buffer zone requirement exists for hemp retail. However, local municipalities have their own zoning ordinances, and enforcement priorities vary significantly by city. Confirm zoning requirements with your local planning office before signing a commercial lease.

What state agency oversees hemp retail licensing in Texas?

Four state agencies share overseeing hemp retail licensing and operations in Texas:

• The Texas Department of State Health Services (DSHS) issues retail registrations and sets compliance standards for consumable hemp products.
• The Texas Alcoholic Beverage Commission (TABC) has been granted co-enforcement authority and may conduct on-site inspections.
• The Texas Department of Agriculture (TDA) handles licensing for hemp cultivation.
•  The Texas Department of Public Safety (DPS) manages the Compassionate Use Program and can refer controlled substance violations for criminal prosecution. 

Texas Dispensary Laws

Learn how to remain compliant with Texas cannabis & hemp retail laws.

What hemp-derived products can currently be sold in Texas retail stores?

Hemp retailers are permitted to sell the following items to adults aged 21 and above, with a valid DSHS Retail Hemp Registration:

• CBD tinctures and oils (≤0.3% Total THC)
• Hemp capsules, softgels, and tablets
• CBD topicals and creams
• Hemp-derived Delta-9 THC gummies and edibles (≤0.3% Total THC on dry weight basis)
• Hemp-derived beverages (≤0.3% Total THC on dry weight basis)
• CBG, CBN, and other non-THC cannabinoid products 

As of August 28, the following products cannot be sold by Texas hemp/CBD retailers:

• Hemp flower, THCA flower, and pre-rolls
• Delta-8, Delta-10, HHC, THC-O, THCP products
• Any cannabinoid-containing vape product

What are the packing and labeling requirements for a hemp retailer in Texas?

Under 25 TAC §300.405, all consumable hemp products must be sold in packaging that is tamper-evident, child-resistant, and resealable (if the product contains multiple servings).

Labels on the outer packaging (25 TAC §300.402) must include the:

• product name
• batch number and date
• manufacturer name and contact information
• serving size in milligrams
• a URL linking directly to the product's COA in three or fewer clicks

Additionally, five mandatory warnings must also appear:

• the product should be kept out of reach of children
• it may cause a failed drug test
• all THCs have psychoactive properties
• pregnant or nursing women should consult a physician
• the product has not been FDA evaluated.

Finally, packaging design is also regulated (25 TAC §300.407). Any artwork, statement, or design that implies the product does not contain cannabinoids – or that it has a medical use – is prohibited.

What taxes apply to hemp product sales in Texas?

Hemp products are subject to the standard Texas state sales tax of 6.25%, plus local taxes up to 2%, for a combined rate of up to 8.25% in most Texas cities. There is no hemp-specific excise tax.

Conclusion

In 2025, Texas Governor Abbott vetoed a complete ban on hemp, choosing regulation over prohibition, but the lawmakers failed to agree on a regulatory framework. Governor Abbott then directed state agencies to act and the Texas Department of State Health Services (DSHS) issued sweeping new rules effective March 31, 2026.

The new rules ban cannabinoid vapes outright, effectively eliminate smokable hemp by a new Total THC testing standard, increase licensing fees by more than 3,000%, and mandate a hard 21+ age requirement statewide. And yet things aren’t set in stone just yet.

As the legal battle over smokable hemp continues in Travis County, staying informed is your best move for staying ahead. Subscribe to the Cova newsletter for real-time updates on Texas regulations and the technology you need to stay compliant.

• Where Is Cannabis Legal in North America in 2026?​​
• Texas Hemp Laws 2025: CBD License & Retailer Compliance
• Cannabis Dispensary Compliance Guide
• Certified Dispensary POS & Inventory Management System for Texas
• The Best POS Systems for Texas Hemp THC & CBD Stores
• Texas CBD and Hemp THC Retail Opportunities: Preparing for What’s Next
• Texas DPS – TCUP Licensing and Registration
• Texas DPS – TCUP Laws and Regulations
• Texas Health & Safety Code, Chapter 487 – Compassionate-Use Act
• Texas State Law Library – Cannabis & the Law Guide
• Texas State Law Library – Hemp
• NORML – Texas Laws and Penalties
• Marijuana Policy Project – Texas