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Tennessee

CANNABIS DISPENSARY REGULATIONS FOR TENNESSEE

Tennessee does not license medical marijuana dispensaries or adult-use cannabis retailers. Marijuana remains illegal for both medical and recreational use under state law.

The state has no commercial framework for marijuana cultivation, manufacturing, testing, delivery, or retail distribution. Home cultivation is also prohibited.

However, Tennessee provides a narrow possession exception for certain low-THC CBD oils. The state also maintains a separate, regulated market for qualifying hemp-derived cannabinoid products.

Limited Low-THC CBD Exception

Tennessee law excludes certain CBD oils containing less than 0.9% THC from its definition of marijuana when specific requirements are met.

This exception does not create a traditional medical marijuana program. Tennessee does not issue medical cannabis cards, maintain a patient registry, or license dispensaries to supply these products.

Eligible individuals must retain supporting documentation. Depending on the applicable section of the law, that documentation may include:

  • Proof of a legal order or recommendation from the issuing state
  • Proof of a qualifying medical diagnosis
  • A valid letter of attestation from a Tennessee-licensed physician
  • Manufacturer labeling showing the product’s THC concentration
  • The product’s batch or lot number and expiration date

A qualifying physician’s letter of attestation is generally valid for no more than six months. It must confirm that the patient has a qualifying condition and that conventional treatment has not sufficiently addressed the condition or its symptoms.

Qualifying conditions include epilepsy or seizures, Alzheimer’s disease, ALS, certain forms of cancer, inflammatory bowel disease, multiple sclerosis, Parkinson’s disease, HIV or AIDS, and sickle cell disease.

The requirements were expanded through Tennessee’s 2021 Public Chapter 577.

No In-State Medical Cannabis Supply

Tennessee’s limited CBD exception does not authorize in-state cultivation, manufacturing, or retail sales.

The law requires qualifying patients to retain proof of an order or recommendation from an issuing state. However, transporting cannabis products across state lines may create separate federal legal risks.

Therefore, the exception should not be treated as a complete medical cannabis program or a guaranteed protection against arrest. Patients should confirm the current documentation requirements before relying on it.

Marijuana Business Restrictions

Tennessee does not provide a legal pathway for:

  • Medical marijuana dispensaries
  • Adult-use cannabis retailers
  • Marijuana delivery services
  • Commercial marijuana cultivation
  • Marijuana manufacturing or processing
  • Recreational or medical home cultivation

Possession, cultivation, manufacturing, and distribution outside the state’s narrow exceptions remain subject to criminal penalties.

The Tennessee Medical Cannabis Commission continues to study medical cannabis policy and make recommendations. However, the commission does not currently license marijuana businesses or operate a patient-access program.

Hemp-Derived Cannabinoid Licensing

Tennessee regulates qualifying hemp products separately from marijuana. Hemp cultivation remains under the Tennessee Department of Agriculture’s Hemp Program.

Meanwhile, the Tennessee Alcoholic Beverage Commission, or TABC, began regulating hemp-derived cannabinoid product businesses on January 1, 2026. This change resulted from Public Chapter 526, which was enacted in 2025.

The TABC issues three primary hemp license types:

  • Supplier licenses
  • Wholesaler licenses
  • Retailer licenses

Each application carries a $500 application fee. Annual license fees are:

  • $2,500 for suppliers
  • $5,000 for wholesalers
  • $1,000 for retailers

A separate retail license is required for each licensed location.

Operating without the required license is a Class A misdemeanor. Noncompliant products may also be seized and forfeited.

Hemp Product and Retail Restrictions

Tennessee applies a total THC standard to regulated hemp-derived cannabinoid products. Total THC is calculated using both delta-9 THC and THCA.

Products may contain no more than 0.3% total THC. The calculation is:

Total THC = (THCA × 0.877) + delta-9 THC

Products containing more than 0.3% total THC are illegal. Tennessee also prohibits THCp and synthetic cannabinoids in regulated products.

Additional requirements include:

  • Sales only through appropriately licensed businesses
  • Age restrictions for intoxicating hemp-derived products
  • Laboratory testing and certificates of analysis
  • QR codes linking to product test results
  • Compliant packaging and labeling
  • Restrictions on serving sizes and THC concentrations
  • Inspections of licensed premises

TABC-licensed retailers may not ship or deliver hemp-derived cannabinoid products directly to consumers. Sales must take place in person at the licensed premises.

Beginning July 1, 2026, licensed retailers may obtain new hemp-derived cannabinoid inventory only from TABC-licensed wholesalers. Current guidance is available through the TABC hemp-derived cannabinoid FAQ.

Payment Processing Considerations

Tennessee’s hemp businesses operate within an increasingly strict licensing and product-compliance system. Payment providers may review a merchant’s licenses, laboratory reports, product formulations, website claims, age controls, fulfillment methods, and processing history.

A product being marketed as hemp does not automatically make it eligible for payment processing. Products must satisfy applicable state and federal requirements. Approval also depends on completed underwriting.

Our guide to payment stability and approval speed explains why transparent underwriting is especially important for hemp and CBD businesses.

Learn more about PayRio’s cannabis and hemp payment solutions or contact PayRio to discuss your business.

CANNABIS LEGALIZATION HISTORY IN TENNESSEE

Tennessee has historically maintained strict marijuana prohibition.

In 2014, the state created a narrow exception for certain low-THC CBD oils used in connection with qualifying medical conditions. However, the law did not authorize dispensaries or establish an in-state supply chain.

In 2021, Tennessee expanded the list of qualifying conditions and created the Tennessee Medical Cannabis Commission. The commission was established to study medical cannabis and make recommendations for a possible future program.

Tennessee later created a regulatory framework for hemp-derived cannabinoid products through Public Chapter 423 in 2023.

In 2025, lawmakers enacted Public Chapter 526. The law transferred responsibility for regulating hemp-derived cannabinoid suppliers, wholesalers, and retailers to the TABC beginning in 2026. The Department of Agriculture continues to oversee hemp cultivation.

Lawmakers introduced additional cannabis reform proposals during the 2025 and 2026 legislative session. However, no comprehensive medical or adult-use marijuana program became law.

CANNABIS LEGALIZATION STATUS IN TENNESSEE

Current Status: Marijuana is illegal for medical and recreational use. Tennessee provides only a narrow low-THC CBD exception and a separately regulated hemp market.

Tennessee law currently provides for:

  • No licensed medical marijuana dispensaries
  • No adult-use marijuana retailers
  • No commercial marijuana production or delivery
  • No legal marijuana home cultivation
  • Limited possession of qualifying CBD oil containing less than 0.9% THC
  • Licensed production, distribution, and retail sale of compliant hemp-derived cannabinoid products

Tennessee’s low-THC exception should not be confused with a complete medical cannabis program. Businesses should also distinguish legal hemp products from marijuana and noncompliant intoxicating cannabinoid products.

LAST UPDATED 9/8/2026 – Laws can be revised and updated frequently, so please keep this in mind.