Texas Cannabis Business Guide
Medical OnlyTexas operates the highly restrictive Compassionate Use Program limited to low-THC cannabis products and a small group of qualifying conditions. Only a handful of vertically integrated licensees serve the entire state.
Active Licenses
6
Regulator
Texas Department of Public Safety (DPS) - Compassionate Use Program
Testing Labs
View all
Consumption Lounges
Not permitted
Testing Labs in Texas
Find licensed cannabis testing laboratories
Professionals in Texas
CPAs, lawyers, and consultants
Texas Department of Public Safety (DPS) - Compassionate Use Program
Official state regulator website
Cannabis Professionals Serving Texas
View allCalyx CPA
CPAs & Accountants
Calyx CPA specializes exclusively in cannabis and psychedelic businesses, offering tax preparation, planning, and IRS audit representation nationwide.
GreenGrowth CPAs
CPAs & Accountants
Expert CPA services for cannabis businesses - cultivators, retailers, and MSOs. Specializes in 280E compliance and scaling.
Cannabis CPA Tax
CPAs & Accountants
Boutique CPA firm serving small- and medium-sized cannabis and CBD companies across 19 states and DC.
MGO CPA
CPAs & Accountants
One of the first national accounting firms to develop targeted services for the cannabis and hemp industries.
HBK Cannabis Solutions
CPAs & Accountants
Accounting Today Top 100 CPA Firm with a dedicated team of cannabis industry subject matter experts.
CohnReznick
CPAs & Accountants
Top 25 national firm helping both plant- and non-plant-touching companies navigate cannabis accounting challenges.
Texas Cannabis Fast Facts
| State | Texas (TX) |
|---|---|
| Legal status | Medical cannabis is legal, recreational cannabis is not |
| Primary regulator | Texas Department of Public Safety (DPS) - Compassionate Use Program |
| Active licenses | ~6 |
| Testing labs in directory | Being compiled |
| Cannabis professionals listed | 48 (view all) |
| Consumption lounges | Not permitted |
| Section 280E exposure | Federal 280E applies to all state-legal cannabis operators |
Data sourced from Texas Department of Public Safety (DPS) - Compassionate Use Program and CannaBizGuide directory counts. For the most current license totals, consult the regulator directly.
Texas Cannabis Business FAQ
Is cannabis legal in Texas?+
Medical cannabis is legal, recreational cannabis is not in Texas. The state's cannabis program is regulated by the Texas Department of Public Safety (DPS) - Compassionate Use Program. Texas operates the highly restrictive Compassionate Use Program limited to low-THC cannabis products and a small group of qualifying conditions. Only a handful of vertically integrated licensees serve the entire state.
Who regulates cannabis in Texas?+
The Texas Department of Public Safety (DPS) - Compassionate Use Program is the primary cannabis regulatory authority in Texas. Operators can find official licensing information, rulemaking, and compliance resources at https://www.dps.texas.gov/section/compassionate-use-program. CannaBizGuide maintains an independent directory of licensed operators and professional service providers working within this regulatory framework.
How many active cannabis licenses are there in Texas?+
Texas has approximately 6 active cannabis licenses across cultivation, manufacturing, distribution, and retail. License counts shift as new applications are processed and inactive licenses are surrendered - for the most current totals, consult the Texas Department of Public Safety (DPS) - Compassionate Use Program directly.
Are cannabis testing labs required in Texas?+
Yes. Like every legal cannabis state, Texas requires licensed testing laboratories to analyze cannabis products for potency, contaminants, microbials, pesticides, and residual solvents before retail sale. Lab directory data for Texas is being compiled - check the /labs section for updates.
Are cannabis consumption lounges legal in Texas?+
No. Texas does not currently permit licensed cannabis consumption lounges. Consumption is generally restricted to private residences, and public consumption remains prohibited under state law.
Do cannabis businesses in Texas face Section 280E taxes?+
Yes. All state-legal cannabis businesses in the US - including those in Texas - are subject to IRC Section 280E at the federal level, which prohibits deduction of ordinary business expenses. Some states have decoupled from 280E for state tax purposes (notably California, Colorado, and Oregon). Cannabis operators should work with a Texas cannabis CPA to understand both federal and state tax exposure.
Latest Updates
All newsTrulieve Cannabis Spends $300K on Federal Lobbying - Legis1
Trulieve Cannabis Spends $300K on Federal Lobbying Legis1
Cannabis industry must win public trust - Medicanja exec - Jamaica Gleaner
Cannabis industry must win public trust - Medicanja exec Jamaica Gleaner
Wyoming will keep marijuana a Schedule I drug despite Trump rule reclassifying - Oil City News
Wyoming will keep marijuana a Schedule I drug despite Trump rule reclassifying Oil City News
New Virginia Law Forces Medical Cannabis Patients To Choose Between Their Medicine And Their Housing (Op-Ed)
"Medical cannabis patients in recovery deserve the same opportunity for stable housing as any other patient managing a chronic condition with a lawfully prescribed medication." By Jeremy Tillem, GreenhouseRVA Virginia's recovery housing system is now forcing legal medical cannabis patients out of stable, certified homes-not because of any new public safety threat, but because a
Feds issue report on cannabis scales to help state officials set rules (Newsletter: July 8, 2026) - Marijuana Moment
Feds issue report on cannabis scales to help state officials set rules (Newsletter: July 8, 2026) Marijuana Moment