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Cannabis is quickly being legalized on a state-by-state basis in the US. To date, 24 states have legalized adult use, and 38 states have legalized medical cannabis. Pennsylvania is one of the states where medical cannabis is legal. The process took effect in April 2016 when Governor Tom Wolf signed Senate Bill 3 to allow the legal consumption of medical cannabis. The Medical Marijuana Advisory Board, a branch of the state’s Department of Health, oversees the program.
On March 7th, 2023, the governor of Pennsylvania put forth a proposal to legalize and tax adult-use marijuana as a constituent of his budget request for the 2023–2024 fiscal year. The executive budget includes a suggestion to enforce a 20 percent tax on the wholesale price of marijuana products traded through the regulated production and sales system once the substance is legalized. Assuming that sales begin on January 1, 2025, the budget anticipates that the state will generate approximately $16 million in cannabis tax revenue in that year. Subsequently, this amount is expected to increase to $64 million in 2026, $132.6 million in 2027, and $188 million in 2028.
On April 12th, 2024, Act 63 of 2023, signed into law by Governor Shapiro on December 14, 2023, became effective. This legislation allows qualified independent Medical Marijuana Organizations (MMOs) to apply for either a grower/processor (G/P) permit or a dispensary permit. Under this act, an independent G/P may apply for one dispensary permit, and an independent dispensary may seek one G/P permit.
Senate Bill 1051 was enacted on October 29, 2024, as Act 123 of 2024 in Pennsylvania. It allows licensed medical marijuana dispensaries to claim state-level business expense deductions previously disallowed under federal tax law and establishes a formal tax appeals settlement process.
While Pennsylvania has seen growing public support and repeated proposals to legalize adult-use cannabis, multiple legislative efforts have stalled in recent years. Lawmakers introduced several bills aiming to establish a regulated retail market, permit home cultivation, and provide a framework for cannabis farming and processing. Despite multiple attempts and growing public interest, none of the proposed bills have passed or moved forward. On May 2nd, 2023, House Bill 1080, which would let individuals 21 and older possess, use, produce, and purchase cannabis via a state retail system overseen by the Liquor Control Board, was officially introduced by Rep. David Delloso (D). Meanwhile, House Bill 1082, which attempts to establish a regulatory procedure for farmers to grow cannabis for marijuana grower-processors following legalization, was submitted on the same day by Rep. Melissa Shusterman (D) and 13 cosponsors.
On July 6th, 2023, SB 846 was filed, a bill seeking to legalize marijuana in Pennsylvania. This proposed legislation comes after their initial announcement on May 19th, 2023, to collaborate on reform initiatives. If enacted, individuals aged 21 and above would be authorized to lawfully buy, own, and even gift up to 30 grams of cannabis.
On February 1st, 2024, a poll showed that 63% of Pennsylvania voters supported marijuana legalization. In response, on February 6, 2024, the governor proposed a budget to legalize and regulate cannabis for adults over 21, following Ohio’s approach.
Pennsylvania House lawmakers introduced a bill on April 9, 2024, that emphasized safety and social equity. The bill set the consumption age at 21, strengthened DUI enforcement, banned marketing to children, and allowed home cultivation for medical patients. It also prioritized licensing for disadvantaged groups and simplified the expungement of past offenses. The bill proposed an 8% sales tax and a 5% excise tax while protecting firearm and child custody rights and aimed to prevent market dominance by a few companies, promoting capital access for minority business owners.
On June 11th, 2024, Pennsylvania lawmakers intensified their push to pass Senate Bill 846, emphasizing bipartisan cooperation and social justice at a “Cannabis Day at the Capitol” rally. Legislators stressed the need for social equity provisions in the legislation. Despite opposition, Governor Josh Shapiro included legalization in his budget proposal, highlighting the potential for regulated product access and economic benefits. The Division of Cannabis Control also worked to streamline regulations, including eliminating fees for medical marijuana patient registrations.
On June 24th, 2024, bipartisan House representatives in Pennsylvania announced their plan to introduce a bill to legalize marijuana. Aiming to redefine law enforcement priorities, the bill proposes boosting job creation, increasing tax revenues by estimated amounts up to $420 million by the 2028-29 fiscal year, and enhancing social equity. It includes measures for the automatic expungement of non-violent cannabis-related offenses and supports business equity for communities disproportionately affected by past marijuana laws.
On July 11th, 2024, the Pennsylvania 2025 budget legislation officially passed both chambers and was signed into law the same day. Although Gov. Josh Shapiro (D) had proposed recreational marijuana legalization in his budget request, this reform did not make it into the final measure. However, the enacted budget includes a provision allowing medical marijuana grower-processors to take state tax deductions equivalent to those they would have received at the federal level if not for the IRS 280E policy, which precludes deductions for businesses dealing with Schedule I and Schedule II substances.
On September 13th, 2024, bipartisan Pennsylvania lawmakers introduced a bill to legalize recreational marijuana. The proposed legislation establishes a regulated cannabis market under the state Department of Agriculture, prioritizes social equity and small businesses, and includes safeguards to prevent youth access. Adults 21 and older could purchase and possess up to 30 grams of cannabis. Medical marijuana patients could grow up to five plants, though this option would not extend to recreational users. The bill also aims to generate tax revenue for law enforcement and local governments.
On February 4th, 2025, during his third budget proposal, Governor Josh Shapiro once again advocated for the legalization of recreational marijuana. He highlighted that 24 states have already enacted similar measures, including nearly all of Pennsylvania’s neighboring states. Shapiro noted that up to 60% of cannabis customers in New Jersey, Maryland, and New York are from Pennsylvania. He emphasized that legalization could bring in $1.3 billion in new tax revenue over the next five years.
On June 2nd, 2025, Pennsylvania Governor Josh Shapiro expressed optimism that lawmakers will deliver a marijuana legalization bill to his desk by the end of the month, aligning with the state’s budget deadline. This follows the House’s passage of HB 1200 on May 7th, which proposed state-run cannabis sales but was subsequently rejected by the Senate due to concerns over its centralized model. In response, bipartisan efforts are underway to craft a compromise bill favoring private dispensaries aiming for a version that can garner broader support. Governor Shapiro emphasized the importance of legalization for public health, justice reform, and retaining tax revenue currently lost to neighboring states with legal cannabis markets.
On July 14th, 2025, Pennsylvania legislators unveiled a bipartisan proposal to legalize adult-use recreational cannabis. House Bill 20 aims to create a well-regulated market prioritizing public safety, social justice, and economic opportunity. The bill would establish an independent Cannabis Authority to license businesses and aims to generate jobs and revenue currently flowing to neighboring states. Key provisions include expungement of past cannabis offenses and support for small and minority-owned businesses entering the industry.
In this evolving landscape, medical marijuana in Pennsylvania can only be sold through licensed dispensaries, which must go through the proper licensing procedures. However, only a limited number of licenses are currently being issued to those who qualify. Anyone looking to capitalize on this growing market and open a cannabis dispensary in Pennsylvania will need to take the required steps to be eligible in the state. Here are some things to consider before opening a dispensary in the Keystone State.
Act 63 of 2023 allows qualified independent MMOs to apply for grower/processor or dispensary permits. The completed applications for these permits will be accepted from May 12, 2024, until June 12, 2024. The permit will be issued to the business entity that holds the original permit and not to a separate legal entity.
Act 63 of 2023 stipulates the following:
(1) An independent grower or processor that applies and fulfills the criteria will be granted one dispensary permit.
(2) An independent dispensary that applies and fulfills the criteria will be granted one grower or processor permit.
Prospective applicants should mark their calendars with these critical dates to ensure compliance with the application timeline for Grower/Processor and Dispensary permits under Act 63 of 2023:
When applying for either a grower/processor or dispensary permit under Act 63 of 2023, applicants must adhere to specific payment requirements.
Application fees and permit fees are to be paid using separate certified checks or money orders, each made payable to the “Commonwealth of Pennsylvania.” These fees must be enclosed in individual sealed envelopes within the main application package. Importantly, the application fees are non-refundable, regardless of the application’s outcome. However, permit fees are refundable if the permit is not issued.
The Commonwealth is segmented into six Medical Marijuana Regions, each consisting of the counties outlined below. An applicant has the option to apply for one permit within any of these designated Medical Marijuana Regions.
Region | Counties |
Region 1 Southeast | Berks, Bucks, Chester, Delaware, Lancaster, Montgomery, Philadelphia, Schuylkill |
Region 2 Northeast | Carbon, Lackawanna, Lehigh, Luzerne, Monroe, Northampton, Pike, Susquehanna, Wayne, Wyoming |
Region 3 South Central | Adams, Bedford, Blair, Cumberland, Dauphin, Franklin, Fulton, Huntingdon, Juniata, Lebanon, Mifflin, Perry, York |
Region 4 North Central | Bradford, Centre, Clinton, Columbia, Montour, Northumberland, Sullivan, Snyder, Tioga, Union, Lycoming, Potter |
Region 5 Southwest | Allegheny, Armstrong, Beaver, Butler, Cambria, Fayette, Greene, Indiana, Somerset, Washington, Westmoreland |
Region 6 Northwest | Cameron, Clarion, Clearfield, Crawford, Elk, Erie, Forest, Jefferson, Lawrence, McKean, Mercer, Venango, Warren |
There are a limited number of licenses that are being handed out in Pennsylvania, and not everyone will qualify for one. In Pennsylvania, certain entities and individuals are not allowed to obtain a medical marijuana dispensary permit, including doctors, anyone who has previously violated the Medical Marijuana Act in the state, anyone who has previously dealt with addiction, and anyone with a prior drug charge or conviction. Some public executives may also be ineligible for a dispensary license in Pennsylvania. Government officials want to ensure that license applicants have “good moral character” before a license is granted to legally operate a dispensary in the state.
According to a sales projection for marijuana in Pennsylvania spanning from 2016 to 2025, the estimated value of marijuana sales in the state is expected to reach around 1.25 billion U.S. dollars by 2025.
Leafly predicts that the cannabis market is expected to reach nearly $45 billion annually by 2025 with the opening of dispensaries in newly legal markets. However, this is just a quarter of the estimated revenue that will be generated once national legalization occurs. The report predicts that the legal marijuana industry will create 1.5 to 1.75 million jobs, which is more than four times the current employment levels.
The PA medical marijuana program has high potential, exceeding $132 million based on 600,000 transactions in its first year since legalization. The global compound annual growth rate (CAGR) is expected to remain at 23.9% through 2025.
What documents are required to apply for a medical marijuana dispensary license in Pennsylvania?
Applicants must provide detailed documents including a community impact plan, diversity plan, security strategy, operational timeline, proof of financial fitness, and evidence of local zoning compliance.
What is a community impact plan in the Pennsylvania dispensary application?
It’s a written plan explaining how the dispensary will positively affect its surrounding community such as creating jobs, supporting local causes, and addressing social equity.
Does Pennsylvania require a diversity plan for dispensary applicants?
Yes. Applicants must describe how their business promotes diversity in ownership, employment, and vendor relationships, and how they support equal opportunity.
What should a dispensary security plan include?
It must cover surveillance systems, inventory controls, secure storage, and response procedures to prevent theft, diversion, or unauthorized access.
Do I need to prove financial capacity to open a dispensary in Pennsylvania?
Yes. Applicants must submit financial statements and show proof of sufficient capital or liquid assets to fund construction, operations, and compliance.
Is local zoning approval required before applying for a dispensary permit?
Yes. You must provide documentation—such as a zoning confirmation letter—proving your chosen location complies with local municipal regulations.
The process of opening a dispensary in Pennsylvania involves strict requirements, from zoning and capital verification to community impact planning and regulatory compliance. For many applicants, working with an experienced cannabis consultant can simplify these steps and reduce the risk of delays or denials.
A qualified consultant can assist with:
If you’re exploring how to navigate Pennsylvania’s licensing process more efficiently, Cannaspire’s Pennsylvania Cannabis Consultants are available to help.
Based on the growth, it appears as though the marijuana industry in Pennsylvania—and the US as a whole—is a very lucrative market that can provide entrepreneurs with an opportunity to take advantage of a growing industry. More and more cannabis companies and growers are popping up all over the country, and a rapidly expanding consumer base is showing the incredible demand for cannabis products, both for adult use and medical purposes. Considering this, getting into the cannabis business may be a highly profitable opportunity for those who can see the potential of this industry in the near future and over the long run.
That said, familiarize yourself with the laws surrounding the operation of a medical marijuana dispensary in Pennsylvania and gather the necessary funds and resources needed to both apply for and operate a successful cannabis dispensary in the state.
By adding yourself to our Pennsylvania Cannabis Mailing List (below), we will keep you informed when the state starts accepting applications. We will also keep you up-to-date on all relevant updates on how to open a dispensary in Pennsylvania.
How To Open A Dispensary In New York (2025 Guide) Key Takeaways Medical Marijuana in New York: Legal since 2014, New York’s medical marijuana program allows patients with qualifying conditions
How To Open a Dispensary in Kentucky Key Takeaways Medical Marijuana in Kentucky: Kentucky has legalized medical marijuana for patients with qualifying conditions. Recreational Marijuana in Kentucky: Recreational marijuana remains
How to Open a Dispensary in Delaware Delaware Key Takeaways Medical Marijuana in Delaware: Delaware legalized medical marijuana in 2011, allowing patients with qualifying conditions to obtain cannabis through state-licensed
