Tennessee Cannabis Regulations
Low THC / CBD OnlyRegulatory Agency: N/A ·
Cannabis Landscape Overview
Tennessee does not have a medical cannabis program. The state's cannabis policy is limited to allowing hemp-derived CBD products containing no more than 0.3% THC, consistent with the federal 2018 Farm Bill. Tennessee passed its own hemp legislation allowing the cultivation, processing, and sale of hemp and hemp-derived products, but no framework exists for THC-containing cannabis products for medical or recreational use.
As of 2026, Tennessee remains without a medical cannabis program despite growing legislative interest. A 2023 executive order by Governor Bill Lee directed a study of medical cannabis policy, and several bills have been introduced in subsequent sessions. Possession of cannabis containing more than 0.3% THC remains a criminal offense, though some municipalities have enacted local decriminalization ordinances for small amounts. Hemp-derived CBD products are widely available through retail stores, pharmacies, and online retailers across the state.
Packaging Requirements
Hemp-Derived CBD Standards
- No state-specific cannabis packaging regulations exist
- Hemp-derived CBD products must comply with general consumer product safety laws
- Ingestible CBD products must follow FDA food and dietary supplement packaging guidelines
- Tennessee law requires that hemp products be properly labeled and tested
- Child-resistant packaging is not specifically mandated but is recommended
Labeling Requirements
Hemp Product Labels
- Product must be identified as derived from hemp
- THC content must be stated and must not exceed 0.3%
- CBD and other cannabinoid content per serving and per container
- Manufacturer or processor name and address
- Net weight or volume
- Complete ingredient list
- Batch or lot number linked to third-party lab testing
- QR code or URL to Certificate of Analysis recommended
Prohibited Claims
- No therapeutic or medical claims without FDA approval
- Products may not be marketed as cures or treatments for diseases
- No claims that the product is a controlled substance or contains THC above legal limits
Advertising Rules
Tennessee has no cannabis-specific advertising regulations. Hemp-derived CBD products are subject to the Tennessee Consumer Protection Act, which prohibits unfair or deceptive trade practices. Federal FTC and FDA guidelines on health and therapeutic claims apply to all CBD product advertising. Sellers may not make unsubstantiated claims about product efficacy. Marketing to minors is subject to general advertising standards. Digital, print, and broadcast advertising of legal hemp-derived CBD products is permitted provided it does not contain false or misleading statements.
Licensing Overview
Tennessee does not have a cannabis licensing framework. The Tennessee Department of Agriculture oversees the state's hemp program, issuing permits for hemp cultivation and processing. Growers and processors must register annually, submit to THC testing of crops, and comply with federal and state hemp regulations. Retailers selling hemp-derived CBD products operate under standard Tennessee business licensing. No dispensary, medical cannabis cultivator, or processor licenses exist. Legislative proposals to create a medical cannabis licensing framework continue to be introduced, with growing bipartisan interest, but none have been enacted as of 2026.
Cannabis Taxes in Tennessee (2026)
Tennessee 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: Tennessee Department of Revenue + Department of Agriculture.
- Excise tax: No cannabis excise tax; 6% cannabinoid tax on hemp-derived THC products
- Sales tax: 7% state sales tax + typical 2.25–2.75% local sales tax applies to legal CBD/hemp products
- Local cannabis tax: No additional local cannabis tax
- Medical exemption: Tennessee has no medical or adult-use program; only federally legal hemp and low-THC CBD oil are permitted
- Effective combined rate: 9.25–9.75% on CBD/hemp; 15–16% combined on hemp-derived THC products
Tennessee added a 6% hemp-derived cannabinoid tax in 2023 targeting delta-8 and other hemp THC products.
Frequently Asked Questions
Is cannabis legal in Tennessee?
Tennessee does not have a recreational or comprehensive medical cannabis program. Only hemp-derived CBD products with less than 0.3% THC are legal. The state previously allowed limited CBD oil for epilepsy patients.
Several medical cannabis bills have been introduced in the legislature but none have passed. Tennessee remains one of the more restrictive states regarding cannabis.
What are the packaging requirements in Tennessee?
Since cannabis is illegal in Tennessee, there are no state cannabis packaging requirements. Hemp-derived CBD products must comply with general consumer product safety standards and federal guidelines.
CBD retailers should use child-resistant packaging as a best practice and ensure products clearly identify as hemp-derived with less than 0.3% THC.
What are the labeling requirements in Tennessee?
Tennessee has no cannabis-specific labeling requirements. Hemp CBD products should comply with FDA guidelines, display accurate CBD and THC content, and include disclaimers about FDA evaluation.
Labels should list all ingredients, confirm the product contains less than 0.3% THC, and avoid any therapeutic or medical claims.
What are the advertising restrictions in Tennessee?
Cannabis advertising is not applicable in Tennessee since cannabis is illegal. Hemp CBD product advertising must comply with FTC truth-in-advertising standards and avoid medical claims.
CBD businesses should clearly distinguish their legal hemp-derived products from illegal cannabis in all marketing materials.
How do I get a cannabis license in Tennessee?
Tennessee does not issue cannabis licenses. There is no medical or recreational program. Hemp businesses can register through the Tennessee Department of Agriculture's hemp program.
Entrepreneurs interested in cannabis should monitor legislative developments or consider neighboring states with legal programs.
Are promotional products allowed for cannabis businesses in Tennessee?
Cannabis promotional products are not applicable in Tennessee since cannabis commerce is illegal. Hemp CBD businesses may use branded promotional items within federal guidelines.
CBD company materials should avoid cannabis-specific imagery and focus on the legal, hemp-derived nature of their products.
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