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Indiana Cannabis Regulations

Low THC / CBD Only

Regulatory Agency: N/A  ·   · 

Short answer: Cannabis is low thc / cbd only in Indiana. Packaging, labeling, advertising, and promotional-product rules are set by the N/A. Every retail product must be child-resistant, tamper-evident, and lab-tested; see the sections below for the full Indiana requirements, plus 8 FAQs.

1. Cannabis Landscape Overview

As of 2026, Indiana remains a strictly "CBD-only" state regarding cannabis policy. The state’s legal framework is defined by the 2018 legalization of low-THC hemp extract, which allows for the sale and possession of hemp-derived cannabidiol (CBD) products provided they contain no more than 0.3% delta-9 THC by dry weight. There is no legal adult-use or medical cannabis market in Indiana; consequently, there are no state-licensed dispensaries, cultivators, or processors for high-THC cannabis products.

Because the state has not legalized medical or recreational marijuana, there is no state-level regulatory agency overseeing a commercial cannabis market. The Office of the Indiana State Chemist (OISC) regulates the state's hemp program, focusing on the registration and testing of hemp-derived products. As of 2026, the "market" consists exclusively of retail stores selling hemp-derived CBD, which are not considered "cannabis licensees" in the traditional sense. Proposals for medical cannabis have been introduced in the Indiana General Assembly repeatedly over the last decade, but none have successfully passed into law, leaving Indiana as one of the few remaining states without a comprehensive cannabis access program.

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2. Packaging Requirements

Because Indiana does not have a legalized cannabis market, there are no state-mandated child-resistant or opaque packaging requirements for cannabis products as defined in other states. Retailers of hemp-derived CBD must adhere to general consumer product safety standards and labeling requirements established by the Indiana State Department of Health and the Office of the Indiana State Chemist. Products must be clearly labeled to avoid consumer confusion, but there is no specific regulatory statute requiring ASTM D3475 compliance for CBD items.

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Penalties for Non-Compliance

Enforcement regarding the sale of non-compliant hemp products is handled through the OISC or local law enforcement. If a product is found to contain THC levels exceeding the 0.3% threshold, it is classified as a Schedule I controlled substance. Penalties for selling such products can include the seizure of inventory, the revocation of hemp registration, and potential criminal charges for possession or sale of a controlled substance under Indiana Code § 35-48. There is no formal administrative fine schedule for "packaging violations" because the product is either legal (compliant CBD) or illegal (marijuana).

3. Labeling Requirements

Indiana requires that all hemp-derived CBD products sold in the state be accompanied by a Certificate of Analysis (COA) from an accredited laboratory. Labels must clearly state the CBD content and verify that the product does not exceed 0.3% delta-9 THC. There is no state-mandated cannabis symbol or specific "government warning" text required by statute, though products must comply with standard FDA labeling guidelines for dietary supplements or food products, including clear ingredient lists and net weight declarations.

4. Exit Bag Requirements

As of 2026, Indiana has no state-level regulations requiring the use of child-resistant "exit bags" for the purchase of CBD products. Retailers are not required to provide specialized packaging at the point of sale, as the state does not categorize these products under the same regulatory framework as high-THC medical or adult-use cannabis.

5. Advertising & Marketing Rules

Advertising for CBD products in Indiana is governed by general business and trade practice laws. There are no specific "cannabis" advertising restrictions because the state does not recognize a legal cannabis industry. Businesses may advertise CBD products provided the marketing is not deceptive or misleading. Age-gating is not legally required by the state for CBD sales, though many retailers voluntarily restrict sales to individuals 18 or 21 years of age.

6. Promotional Product Rules

There are no state-specific rules regarding branded merchandise for CBD retailers. Businesses are free to distribute promotional items such as lighters, grinders, or apparel. Because there is no legalized cannabis market, there are no "free product" distribution bans, though retailers must ensure that any product distributed does not contain illegal levels of THC.

7. Licensing Overview

There is no "cannabis license" available in Indiana. The Office of the Indiana State Chemist provides a "Hemp Product Handler" registration for businesses engaged in the processing or distribution of hemp products. This is not a cannabis dispensary license and does not grant authority to sell marijuana.

8. Testing & Lab Requirements

All hemp-derived products offered for sale must be tested by an independent, third-party laboratory. The testing must confirm that the product contains less than 0.3% delta-9 THC. The lab must be ISO/IEC 17025 accredited. Results must be made available to consumers upon request, usually via a QR code on the packaging linking to the COA.

9. Possession & Purchase Limits

Indiana law does not have "purchase limits" for CBD products. However, possession of any substance containing more than 0.3% delta-9 THC is illegal under Indiana Code § 35-48-4. Possession of marijuana remains a criminal offense. Possession of less than 30 grams of marijuana is a Class B misdemeanor, while possession of higher amounts or prior convictions can lead to felony charges. There is no distinction between residents and non-residents; the law applies to all individuals within the state's jurisdiction.

10. Home Cultivation Rules

Home cultivation of cannabis (marijuana) is strictly prohibited in Indiana. There is no medical or adult-use provision that allows individuals to grow cannabis plants. Cultivation of any amount of marijuana is a criminal offense, with penalties ranging from misdemeanors to felonies depending on the number of plants and the weight of the harvested material. Hemp cultivation is only permitted for registered industrial hemp growers under the OISC pilot program, which is strictly for agricultural/commercial purposes and not for home use.

11. Impaired Driving / Cannabis DUI Laws

Indiana operates under an impairment-based standard for driving under the influence. Indiana Code § 9-30-5-1 makes it a crime to operate a vehicle with a controlled substance in the blood. Because Indiana does not have a "per se" ng/mL limit for THC, prosecutors rely on officer testimony regarding observable impairment and chemical testing. Under the state's implied consent law, refusing a chemical test can result in the automatic suspension of driving privileges. Penalties for a first offense include potential jail time, fines, and license suspension. Commercial driver’s license (CDL) holders are subject to federal zero-tolerance standards.

12. Public Consumption Rules

Public consumption of marijuana is illegal in all forms in Indiana. Because there is no legal cannabis market, there are no licensed consumption lounges. Public consumption is treated as a criminal offense, often falling under public nuisance or drug possession statutes. Furthermore, Indiana’s smoking ban (IC § 7.1-5-12) prohibits smoking in most public places and places of employment; even if cannabis were legal, it would be subject to these existing tobacco-related restrictions.

13. City-Level Local Ordinances

Because the state has not legalized cannabis, city-level ordinances are largely focused on the regulation of CBD retailers and the enforcement of general drug laws. In cities like Indianapolis, Bloomington, and South Bend, local law enforcement maintains a focus on preventing the sale of "look-alike" products that contain illegal levels of THC. Some jurisdictions have enacted zoning requirements for smoke shops or vape stores, but these are broad business regulations rather than cannabis-specific policies.

14. Cross-State Transport & Airport Rules

Transporting marijuana into or through Indiana is a felony offense, regardless of whether the cannabis was purchased legally in a neighboring state like Illinois or Michigan. Indiana airports, including Indianapolis International (IND), are subject to federal jurisdiction. TSA agents are not actively searching for cannabis, but if they discover it, they will refer the matter to local law enforcement, which will result in seizure and potential arrest. There are no amnesty boxes at Indiana airports.

15. Recent & Pending Legislation

During the 2025–2026 session, several bills were introduced to explore the potential for medical cannabis, such as SB 250, which sought to establish a limited medical program. However, these bills largely stalled in committee. As of mid-2026, no major cannabis legalization bill has passed either chamber of the Indiana General Assembly. There are currently no voter-led ballot initiatives for cannabis legalization, as Indiana does not have a state-wide citizen initiative process for statutory or constitutional changes.

16. Market Size & Industry Statistics

There is no legal cannabis market in Indiana, so there are no state-collected cannabis tax revenues. Industry reports from groups like MJBizFactbook categorize Indiana as a "restrictive" state. While a robust CBD retail market exists, it is not tracked as part of the legal cannabis industry. Consequently, there are no meaningful employment or sales figures for a legal cannabis sector in the state.

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).

Cannabis containing more than 0.3% THC remains illegal in Indiana under state law.

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Indiana Regulations by Category

📦 Packaging Requirements

Indiana Packaging Requirements

CBD/hemp products only. Must be in sealed, tamper-evident packaging. No cannabis flower program.

Citation: Ind. Code § 15-15-13

🏷️ Labeling Requirements

Indiana Labeling Requirements

Hemp-derived CBD must show THC content below 0.3%. QR code to COA, manufacturer info, and batch number.

Citation: Ind. Code § 15-15-13

🛍️ Exit Bag Requirements

Indiana Exit Bag Requirements

No state cannabis program. No exit bag requirements as cannabis sales are not permitted.

Citation: Ind. Code §35-48-4

📢 Advertising & Marketing

Indiana Advertising Rules

No state cannabis program. Cannabis remains illegal for recreational and medical use. CBD oil with <0.3% THC is permitted.

Citation: Ind. Code §35-48-4

🔥 Promotional Products

Indiana Promotional Product Rules

Cannabis is illegal. CBD from hemp permitted with restrictions. No cannabis promotional products allowed. Hemp-CBD marketing must avoid health claims.

Citation: Ind. Code § 35-48-4

📋 Licensing Overview

Indiana Licensing Overview

No state cannabis licensing program. Only CBD oil with ≤0.3% THC is permitted under limited conditions.

Citation: Ind. Code § 35-48-4

🔬 Testing & Lab Requirements

Indiana Testing Requirements

No cannabis testing program. Hemp-derived CBD products must comply with federal ≤0.3% THC limits.

Citation: Ind. Code § 15-15-13

📡 Seed-to-Sale Tracking

Indiana Seed-to-Sale Tracking

No state cannabis tracking system. Cannabis remains illegal. Hemp-CBD products tracked through OISC hemp program registration.

Citation: Ind. Code § 15-15-13

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Frequently Asked Questions

Is cannabis legal for adult use or medical consumption in Indiana as of 2026?
Indiana maintains a strict prohibition on both recreational and medical marijuana, meaning THC-rich cannabis remains entirely illegal for general consumption. However, the state does permit the sale and possession of low-THC hemp extract and CBD products that comply with federal and state limits. Business operations within the state are therefore legally restricted to hemp-derived cannabinoids rather than traditional cannabis.
What are the specific packaging and labeling requirements for legal CBD and hemp products in Indiana?
All hemp-derived consumable products sold in Indiana must feature clear, accurate labeling that includes a distinct list of ingredients, net weight, and the manufacturer's name. Labels are also required to display a batch or lot number along with a QR code linking to a valid certificate of analysis from an independent accredited laboratory. Furthermore, packaging must not mimic popular candy brands or feature cartoon imagery that could appeal to children.
Are there state-level restrictions on advertising CBD and hemp-derived products?
Indiana enforces stringent guidelines on how hemp and CBD businesses can market their merchandise to the public. Advertisements cannot make false or misleading health claims, nor can they target minors through the use of youth-oriented media, cartoon characters, or promotional partnerships with schools. Additionally, all promotional materials must clearly state that the products are derived from industrial hemp and comply with state THC thresholds.
Can Indiana hemp businesses utilize promotional products like branded apparel or free samples?
Offering free samples of consumable hemp products to consumers in public retail settings is strictly regulated and generally prohibited to prevent unauthorized distribution. Businesses may utilize promotional items such as branded apparel, tote bags, or signage, provided these items do not market directly to minors or promote the illegal use of intoxicating cannabinoids. All promotional strategies must reinforce that the brand operates strictly within the legal hemp framework.
What is the licensing or registration process for operating a CBD or hemp business in Indiana?
Retailers and processors intending to handle or sell consumable hemp products in Indiana must register with the Indiana State Board of Health. The registration process requires submitting detailed business information, paying the applicable state fees, and providing proof that products meet legal cannabinoid concentration limits. Facilities may also be subject to routine state inspections to ensure ongoing compliance with food safety and labeling laws.
What are the legal THC limits for hemp-derived products sold in Indiana?
In accordance with both federal and state definitions, consumable hemp products sold in Indiana must contain no more than 0.3 percent delta-9 THC on a dry-weight basis. Any product exceeding this statutory limit is classified as illegal marijuana under Indiana criminal code, regardless of whether it is derived from the hemp plant. Business owners face severe criminal penalties and license revocation if laboratory tests reveal their inventory exceeds this threshold.
Are out-of-state hemp and CBD products required to meet special testing standards to be sold in Indiana?
Products manufactured outside Indiana must still comply with all state labeling and safety regulations before they can be legally stocked on local shelves. Retailers are legally responsible for ensuring that out-of-state suppliers provide comprehensive certificates of analysis from ISO-accredited laboratories verifying cannabinoid content and the absence of heavy metals or pesticides. Selling untested or non-compliant out-of-state inventory can result in immediate product embargoes and fines.
Can Indiana businesses legally sell delta-8 THC or other synthetic cannabinoids?
Indiana law explicitly classifies synthetic cannabinoids and chemically altered intoxicants, such as delta-8 THC synthesized from CBD isolate, as controlled substances. Consequently, businesses cannot legally sell these intoxicating derivatives within the state. State regulators and law enforcement actively inspect retail establishments to confiscate unauthorized synthetic products and penalize non-compliant operators.

Browse by Regulation Category

📦 Packaging Requirements🏷️ Labeling Requirements🛍️ Exit Bag Requirements📢 Advertising & Marketing🔥 Promotional Products📋 Licensing Overview🔬 Testing & Lab Requirements📡 Seed-to-Sale Tracking🛒 Possession & Purchase Limits🌱 Home Cultivation🚗 DUI & Impaired Driving🌆 Public Consumption💰 Cannabis Taxes

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Indiana Cannabis Businesses → Find licensed dispensaries, brands, cultivators, and delivery services. Indiana cannabis tax breakdown → Excise, sales, and local cannabis tax rates with a calculator. Verify a Indiana license → Find the official regulator portal and how to check a license. Regulation Glossary → Plain-English definitions of packaging, labeling, and compliance terms. Recent Rule Changes → Regulatory updates flagged by our research pipeline, with official sources.

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For informational purposes only. Not legal advice. Content is drafted with AI-assisted research and may contain errors — verify current rules with the relevant state agency before acting. Regulations change frequently; consult an attorney. Read full disclaimer