Indiana Cannabis Regulations
Low THC / CBD OnlyRegulatory Agency: N/A ·
Cannabis Landscape Overview
Indiana has no medical cannabis program and no state agency overseeing cannabis regulation. The state's cannabis policy is limited to allowing CBD products derived from hemp that contain no more than 0.3% THC, consistent with the federal 2018 Farm Bill. Indiana passed SEA 52 in 2018, which legalized the sale and possession of CBD oil derived from industrial hemp, provided it meets the federal THC threshold.
As of 2026, Indiana remains one of the most restrictive states regarding cannabis. Multiple legislative attempts to establish a medical cannabis program have failed. Possession of any cannabis containing more than 0.3% THC remains a criminal offense, though some municipalities have reduced penalties for small amounts. There is no patient registry, no dispensary system, and no state-regulated cannabis supply chain beyond what exists for hemp-derived CBD products.
Packaging Requirements
Hemp-Derived CBD Products
- CBD products sold in Indiana must comply with general consumer product safety standards
- Products marketed for ingestion must follow FDA food labeling guidelines
- Child-resistant packaging is not specifically mandated by state law for CBD but is recommended by industry best practices
- Products must not make unapproved health claims on packaging
- Packaging must accurately represent the product contents
Labeling Requirements
CBD Product Labels
- Product must be clearly identified as hemp-derived CBD
- THC content must be stated and must not exceed 0.3%
- CBD content per serving and per container
- Manufacturer name and contact information
- Batch or lot number
- Net weight or volume
- Ingredient list
- QR code or reference to Certificate of Analysis from third-party lab testing is industry standard
Prohibited Claims
- No FDA-unapproved therapeutic or medical claims
- Products may not be marketed as treatments for specific diseases or conditions
- Labels must not imply the product is a controlled substance or contains THC above legal limits
Advertising Rules
Indiana does not have cannabis-specific advertising regulations since there is no cannabis program. Hemp-derived CBD products are subject to general consumer protection and advertising laws. Sellers may not make false or misleading claims about CBD products. The Federal Trade Commission (FTC) and FDA guidelines on health claims apply. Products may not be marketed to minors. Retailers selling CBD products must ensure their advertising accurately represents the product's contents and does not claim to treat, cure, or prevent any disease.
Licensing Overview
Indiana does not issue cannabis-specific licenses. There is no dispensary, cultivator, or processor licensing framework for cannabis products beyond hemp. Hemp cultivation and processing require registration with the Indiana State Department of Agriculture under the state's industrial hemp program. Retailers selling hemp-derived CBD products operate under standard business licensing. There is no seed-to-sale tracking system for CBD retail sales. Legislative proposals for medical cannabis licensing have been introduced repeatedly but have not advanced through the Indiana General Assembly as of 2026.
Cannabis Taxes in Indiana (2026)
Indiana cannabis businesses collect and remit multiple overlapping taxes. Below is a summary of the rates that apply to retail cannabis sales as of 2026. Regulatory agency: Indiana State Department of Agriculture (hemp program).
- Excise tax: No cannabis excise tax
- Sales tax: 7% state sales tax applies to legal CBD/hemp products
- Local cannabis tax: No local cannabis tax
- Medical exemption: Indiana has no medical or adult-use program; only federally legal hemp-derived CBD is available
- Effective combined rate: 7% on CBD products
Cannabis containing more than 0.3% THC remains illegal in Indiana under state law.
Frequently Asked Questions
Is cannabis legal in Indiana?
Indiana does not have a medical or recreational cannabis program. Cannabis remains fully illegal for all purposes except hemp-derived CBD products containing less than 0.3% THC.
Several bills have been introduced to establish a medical program, but none have passed as of 2026. CBD products derived from hemp are legal under state and federal law.
What are the packaging requirements in Indiana?
Since cannabis is illegal in Indiana, there are no state cannabis packaging requirements. Hemp-derived CBD products must comply with general consumer safety standards and federal guidelines.
CBD product sellers should use child-resistant packaging as a best practice and ensure packaging does not make medical claims.
What are the labeling requirements in Indiana?
Indiana has no cannabis-specific labeling requirements. Hemp CBD products must comply with FDA guidelines, accurately display CBD content, and include a disclaimer that the product has not been evaluated by the FDA.
Labels should clearly state the THC content is below 0.3% and list all ingredients. No therapeutic or medical claims are permitted.
What are the advertising restrictions in Indiana?
Cannabis advertising is not permitted in Indiana since cannabis is illegal. Hemp CBD product advertising must not make medical claims and should comply with FTC truth-in-advertising standards.
CBD businesses should avoid any language suggesting their products treat, cure, or prevent any disease or medical condition.
How do I get a cannabis license in Indiana?
Indiana does not issue cannabis licenses. There is no medical or recreational cannabis program in the state. Hemp businesses can register under the state's hemp program overseen by the Office of Indiana State Chemist.
Entrepreneurs interested in the cannabis industry may consider neighboring states like Illinois or Michigan, which have established legal markets.
Are promotional products allowed for cannabis businesses in Indiana?
Cannabis promotional products are not applicable in Indiana since cannabis commerce is illegal. Hemp CBD businesses may use branded promotional items that comply with federal and state advertising guidelines.
Branded merchandise for CBD companies should avoid cannabis imagery and focus on the hemp-derived nature of their products to stay within legal bounds.
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