Key Takeaways

• Cannabis law and regulations:
  • Title 4.1, Subtitle II, Chapter 16 of the Code of Virginia and Title 3, Agency 10 of the Administrative Code regulate the medical cannabis market in Virginia. The Virginia Cannabis Control Authority (CCA) was established in 2021 and it is responsible for the regulation of the medical cannabis market.
• Licenses available: Pharmaceutical processor, cannabis dispensing facility, cannabis cultivation facility.
• Products legal:
  • Cannabis oils, edibles and vape cartridges with single doses containing no more than 10 milligrams of THC. Medical cannabis flower products are also legal in the state.
  • Individuals aged 21 and over are allowed to possess up to one ounce of cannabis.
• Taxes:
  • The state sales tax is 5.30%. There is no additional excise tax on medical cannabis in Virginia.
  • In 2023, Virginia passed legislation that exempt businesses from Section 280E of the federal tax code that allows cannabis companies to deduct business expenses from their state income taxes.
• Market:
  • Medical cannabis sales in Virginia totaled $74.3 million from August to December 2025.
  • On March 14, 2026, the House and Senate both passed HB642 and SB542; both bills now head to the Governor. The finalized version proposes for the licensing process to start on July 10, 2026, with retail sales beginning on January 1, 2027.
  • Virginia’s unregulated cannabis market is estimated to be worth $3 billion.
  • According to the MJBiz Factbook, once the state creates a regulated market, legal adult-use cannabis sales in Virginia could reach $780 million in the first year and over $1.09 billion in the second year.

Virginia Medical Cannabis

In 2015, the Virginia General Assembly authorized the possession and use of medical cannabis if recommended by a doctor and prohibited prosecution of patients using CBD or THC oils for treatment of intractable epilepsy, as long as they had a certificate for treatment from a doctor. Senate Bill 701 was then passed in 2016 to allow pharmaceutical processors licensed by the Board of Pharmacy to manufacture and provide CBD oil and THC-A oil. House Bill 1251, passed in 2018, allowed for CBD oil and THC-A oil to be used for any medical condition.

On March 9, 2018, Virginia became the 33rd state to launch a medical cannabis program when Virginia’s Governor signed into law Senate Bill 726, authorizing the Board of Pharmacy (Board) to license up to five pharmaceutical processors – vertically integrated companies that grow, process and sell cannabis products with one per each health service area in the state. The board was also responsible for establishing regulations and overseeing the distribution of medical cannabis. The cannabis dispensing facility must be owned in part by the pharmaceutical processor permitted in that area. The first cannabis dispensary in Virginia began operations in October 2020. From January 1, 2024, the Virginia Cannabis Control Authority (CCA) assumed regulatory oversight of Virginia’s medical cannabis program.

Initially, medical cannabis products in Virginia were limited to cannabis oils, edibles and vape cartridges with single doses capped at 10 milligrams of THC. In 2021, the Virginia Legislature approved a bill in July 2021 to add flower products to the state’s medical cannabis program.

Effective July 1, 2022, HB933 removed the requirement for patients, parents, and legal guardians to register with the Board of Pharmacy. A Written Certification for the Use of Medical Cannabis from a Registered Practitioner for Medical Cannabis is still required and must be presented at the dispensary, along with a government-issued ID, to obtain medical cannabis products.

In 2023, Virginia passed legislation that exempt businesses from Section 280E of the federal tax code that allows cannabis companies to deduct business expenses from their state income taxes.

According to the 2025 Annual Report from the CCA, from FY24 Q3 (January to March 2024) to FY25 Q4 (April to June 2025), the number of total certifications issued for the use of medical cannabis keep rising but the rate of growth has slowed significantly. In Q4 FY25, 2,626 new certifications were issued which is less than 1/8th the number issued in Q4 FY24.

As of June 2025, there were 1,550 practitioners in the state registered on the electronic Medical Cannabis Portal, up by 499 from June 2024. Since practitioners may use paper forms instead of the portal, the actual number of registered cannabis practitioners in Virginia is likely higher. Since from July 2022 patients no longer need to register with the Board, it is difficult to know the true number of medical cannabis patients in Virginia, but data from a 2022 Fiscal Impact Statement estimated that at the time of the report there were around 40,000 active patients with 8,000 pending applications.

As of February 2026, there were 5 licensed pharmaceutical processors: AYR Virginia, Jushi Holdings, Green Thumb Industries, The Cannabist Company, Verano, with 23 dispensing facilities operated in total. Pharmaceutical processors are required to register products with the CCA before they can be dispensed to patients. From January to June 2024, the CCA staff received 843 product applications.

In July 2025, Virginia introduced the Metrc seed-to-sale tracking system. The tracking system revealed that Virginia’s cannabis patients spent nearly $30 million on medical cannabis in July and August of 2025 – already half of MJBizDaily Factbook’s estimated $59 million for all of 2025. Sales from August to December 2025 totaled $74.3 million, bringing the five-month period’s revenue well above the Factbook’s full-year estimate. Annualizing these early results suggests 2025 medical cannabis sales in Virginia approached $180 million. January 2026 sales reached $15.08 million, reinforcing strong momentum. While the 2022 MJBizDaily Factbook projected a $95 million Virginia medical cannabis market by 2026, current performance indicates the market will substantially exceed that forecast.

The tracking system also revealed that patients spent the most on cannabis flower (43% of sales), followed by concentrates (33%), infused edibles (17%) and shake trim (6%).

Weed Delivery in Virginia

Medical cannabis delivery services became legal under the provisions of HB 933 for patient and caregivers registered with the state and with a valid written medical cannabis certification. Medical cannabis can be ordered by phone or through medical cannabis dispensary websites. Dispensaries use registered delivery agents to deliver medical cannabis to customers after verifying their identity.

Cannabis Delivery Service by State

Virginia Recreational Cannabis

On April 21, 2021, Virginia Gov. Ralph Northam signed adult-use cannabis legislation into law. Starting July 1, 2021, public possession of up to one ounce of cannabis by adults over 21 is legal, and personal cultivation of up to four plants at home is also allowed. Private sharing of up to an ounce of cannabis between adults is also legal, as long as no remuneration is involved. However, since then no legislation was developed to establish a regulated adult-use cannabis market. Hence, while possession and home cultivation has been legal since 2021, retail sales remain unauthorized pending new legislation.

How to Start a Cannabis Business in Virginia?

On January 31, 2025, the Virginia Senate passed Senate Bill 970 which aimed to establish a licensing and regulatory framework for adult-use dispensaries. The bill would have allowed individuals aged 21 and over to buy no more than 2.5 ounces of cannabis with retail sales starting in May 2026. Both SB 970 and its companion bill HB 2485 were vetoed by Gov. Glenn Youngkin. Other attempts to create a regulated market for recreational cannabis in Virginia included Senate Bill 448 and House Bill 698 and were also vetoed by Governor Youngkin.

However, with the new elected governor Abigail Spanberger vowing to sign legislation creating a regulatory framework for Virginia’s adult-use cannabis market if it reaches her desk, Virginia appears positioned to finalize adult-use market regulations in 2026.

At their meeting on December 2, 2025, the Joint Commission on the Future of Cannabis Sales unveiled a plan with a timeline proposing to launch the adult-use retail cannabis market by November 1, 2026. The proposal included limiting retail cannabis licenses to a maximum of 350, removing the “opt-out provision” for localities, and imposing an 8% state tax on adult-use cannabis sales with local sales tax of up to 3.5%. The licensing process would start on July 1, 2026, if the proposal is approved, overseen by CCA.

The proposal’s provisions are reflected in two bills introduced in January 2026 – House Bill 642 and Senate Bill 542. On February 17, 2026, House Bill 642 was passed by the House and Senate Bill 542 was passed by the Senate. The two versions were then sent from one chamber to the other for consideration. On March 14, Virginia House and Senate lawmakers both approved two companion bills and they now head to Virginia Governor Abigail Spanberger’s desk.

The finalized version of the regulations proposes:

• Adults may purchase up to 2.5 ounces of cannabis in a single transaction;
• The Virginia Cannabis Control Authority will be responsible for the regulation and licensing of the adult-use cannabis industry.
• Legal sales start on January 1, 2027;
• Excise tax of 6% is imposed on cannabis sales;
• Serving sizes are capped at 10mg THC with no more than 100mg THC per package;
• No “opt-out” provision for localities;
• Delivery services are permitted; and
• Existing medical cannabis operators can enter the adult-use market by paying a conversion fee of $10 million.

Virginia’s unregulated cannabis market is estimated to be worth $3 billion. According to the MJBiz Factbook, once the state creates a regulated market, legal adult-use cannabis sales in Virginia could reach $780 million in the first year and over $1.09 billion in the second year.

Virginia Cannabis Market Infographics

How Can Cannabusinessplans Templates Help Start or Grow Your Cannabis Business?

The majority of cannabis licensing programs require the submission of a business plan as part of the application for a cannabis license. Even if it is not mandated by law, a business plan is essential for securing funding and assisting an applicant in understanding how much money it will take to start a cannabis business and how much profit it could make.

A well-structured business plan can make all the difference in helping you demonstrate your proposed cannabis business’ compliance with regulations and its operational viability.

Our complete cannabis business plan template package is everything you need to create a professional business plan for a cannabis business with expert financials and projections. A complete cannabis business plan template package includes:

• Excel Financial Model: change variables and immediately see the impact, break down operational and capital costs, know how much it will take to get into the business and the potential profits.
• Word Business Plan: value proposition, market analysis, marketing strategy, operating plan, organizational structure, financial plan and more.
• PowerPoint Pitch Deck: provide a quick overview of your cannabis business plan.

Cannabis Micro Cultivation Business Plan Sample, Virginia

Virginia Hemp Industry