New Jersey’s legal cannabis market is still young, but its prices are among the highest in the country. As of 2025, the average cost for an ounce of high-quality cannabis in New Jersey is estimated at around $344. By comparison, consumers in Oregon pay roughly $210 for the same amount, while in Colorado the average is closer to $242. This pricing disparity has become a growing concern among consumers and industry analysts alike.

Several key factors are driving New Jersey’s elevated cannabis prices. One of the most significant is the high cost of doing business in the state. Licensing fees for dispensaries can reach six figures over time, with additional compliance costs required for testing, security, packaging, and environmental regulations. This creates a steep barrier to entry, discouraging small operators and limiting competition.

Taxation further compounds the issue. Cannabis sales in New Jersey are subject to a 6.625% state sales tax. Local municipalities can tack on additional excise taxes, pushing the total tax burden close to 20% in some areas. Additionally, the state imposes a Social Equity Excise Fee on cultivators, which increased from $1.24 to $2.50 per ounce in 2025. These added costs trickle down to the consumer, inflating retail prices.

Market dynamics also play a role. Unlike more established markets such as California or Oregon, New Jersey has a relatively limited number of licensed dispensaries and delivery providers. The slow rollout of licenses and a tightly controlled regulatory framework has allowed a handful of multi-state operators to dominate the retail landscape. With less competition, there is little incentive to lower prices.

Delivery services are also affected. In many cases, delivery adds an extra fee on top of already high product costs. Consumers have reported that delivery pricing in New Jersey can sometimes be nearly double what similar orders would cost in neighboring states or through illicit channels. This has raised concerns that legal prices are inadvertently encouraging black market activity, especially among price-sensitive consumers.

In comparison, states with more mature cannabis industries benefit from economies of scale and greater market saturation. Oregon, for instance, has significantly lower prices due to a surplus of cannabis supply and a less restrictive licensing environment. Colorado enjoys similar benefits, with robust competition and a streamlined regulatory system that supports lower operating costs.

For New Jersey to bring prices more in line with national averages, several steps could be considered. Streamlining the licensing process could attract more businesses and increase competition. Adjusting the state’s tax structure could also help ease costs for consumers while maintaining tax revenue. Additionally, implementing incentives for price reductions—especially for medical cannabis patients—could improve affordability and access.

Ultimately, the high cost of cannabis in New Jersey is not solely a supply issue—it’s the result of policy decisions, market structure, and regulatory strategy. As the industry matures, stakeholders will need to find a balance between state revenue goals and the need for a competitive, consumer-friendly market.