Tennessee Marijuana License

Marijuana remains illegal in Tennessee for both medical and adult use, and there are no marijuana business licenses. The state allows only very limited cannabis oil possession for certain seizure patients.

The business opportunity is in hemp-derived cannabinoid products (HDCPs). Starting January 1, 2026, the Tennessee Alcoholic Beverage Commission (TABC) took over licensing from the Department of Agriculture, with a three-tier system of retailers and wholesalers similar to alcohol.

• HDCP retailer (21+ businesses, package stores and liquor-by-the-drink licensees; not grocery, convenience or drug stores)
• HDCP wholesaler
• No marijuana business licenses

• Sales to adults 21+ with ID checks for every customer
• Wholesalers must show at least $750,000 in cash, a bond or a line of credit
• No delivery, self-checkout or vending machine sales

• Retailer: $500 application fee and $1,000 annual license fee
• Wholesale tax: 2 cents per milligram of hemp-derived cannabinoid ($4.40 per gallon for liquids), replacing the 6% retail tax

1. Confirm your business type qualifies under the new law.
2. Apply to the TABC for a retailer or wholesaler license.
3. Set up ID checks, compliant products and recordkeeping.

• Marijuana possession is illegal
• Hemp-derived products must meet state testing and labeling rules
• Vaping or smoking HDCPs is banned in restaurants and bars

• Tennessee has no medical marijuana card program
• Limited low-THC cannabis oil possession is allowed for certain seizure conditions

1. No state application exists.
2. Talk with your doctor about FDA-approved options.