Best State to Open a Smoke Shop in 2025
Looking to open a smoke shop in 2025? The right state can make or break your margins. From taxes and regulations to market size and customer demand, location matters more than ever.
At BakeBoxx Wholesale, we’ve supplied over 5,000 smoke shops nationwide, and we know exactly where the industry is booming and where it's better to wait. Whether you're starting fresh or expanding your brand, here’s a breakdown of the top states to open a smoke shop in 2025.
🔥 Quick Answer: Florida, Texas, and Michigan are the best states to open a smoke shop right now - thanks to high demand, low taxes, and legal grey zones that favor hemp-derived cannabinoids like THCA, Delta 8, and more.
🧠 What to Look for in a Smoke Shop-Friendly State
Before diving into specific locations, here are the key criteria we used:
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✅ No bans on hemp-derived cannabinoids (THCA, D8, HHC, etc.)
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✅ Low state taxes and operational costs
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✅ Strong customer base (college towns, tourism, major metros)
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✅ Ease of licensing and retail-friendly zoning laws
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✅ Access to wholesale suppliers with fast shipping and low MOQs
Now let’s break down the top states.
🥇 Florida – The #1 State to Open a Smoke Shop in 2025
Why it’s hot: Florida leads the country in no state income tax, warm weather year-round, and a high concentration of college students, tourists, and smokers.
What makes it great:
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THCA flower and Delta 8 are still hot-selling and unbanned
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Massive cities like Miami, Tampa, and Orlando are growing fast
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Easy access to logistics and distributors, including BakeBoxx's warehouse zones
Bonus: Florida is shipping-friendly for online hemp orders. That means more opportunity for in-store and ecommerce growth.
🥈 Texas – Huge Market, Low Costs
Texas is the wild west of the hemp industry and we mean that in a good way.
Why it works:
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Low regulation on hemp-derived cannabinoids
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Major metros (Dallas, Houston, Austin) are booming with smoke shops
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No state income tax = more profits in your pocket
Challenges? Texas cities may vary on local enforcement, but that hasn’t slowed the explosion of THCA and Delta 8 retail in 2025.
Tip: Stick with suppliers who ship fast and offer full-panel COAs for protection.
🥉 Michigan – Legal Cannabis + Big Hemp Demand
Michigan has recreational cannabis, but THCA flower and other hemp-derived products are still legal and thriving.
Why it’s one of the best:
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Dual demand from both smoke shop and dispensary shoppers
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Detroit, Ann Arbor, and Grand Rapids are goldmines for hemp brands
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Affordable real estate for storefronts outside major metros
Pro tip: BakeBoxx already services dozens of shops in Michigan. Our high-potency flower, COA transparency, and white-label options make scaling easy.
4. Tennessee – THCA Hotspot, No Income Tax
Tennessee may not have legal cannabis, but it doesn’t need it. The state is thriving with hemp-based cannabinoids like THCA, Delta 8, and D9 from hemp.
Why Tennessee wins:
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Affordable real estate and low licensing hurdles
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No state income tax
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High demand in Nashville, Knoxville, and surrounding suburbs
BakeBoxx ships to TN daily, with compliant flower and infused pre-rolls in bulk.
5. North Carolina – Booming Underground Market
North Carolina is a sleeper state for smoke shops. While it doesn’t have legal cannabis, the hemp scene is exploding, especially in college and rural towns.
Why it’s smart:
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Strong demand for THCA flower, D8 vapes, and edibles
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Lower competition than over-saturated markets
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Fast growth in cities like Charlotte and Raleigh
Warning: Stay compliant. Only work with verified suppliers who provide full-panel testing and legal shipping documents, BakeBoxx does both.
States to Be Cautious About 🚫
Some states may seem like good targets but carry higher risks:
| State | Why You Should Be Cautious |
|---|---|
| California | High taxes, saturated market, local hemp bans |
| New York | Confusing hemp rules, red tape, high rent |
| Oregon/Colorado | Legal cannabis dominates, hard for smoke shops to compete |
🛒 Ready to Stock Your Shop?
At BakeBoxx Wholesale, we specialize in bulk and white-label THCA flower, pre-rolls, and vapes delivered fast and always COA-tested. Whether you're just launching or scaling to a second location, we’ve got your back.
👉 Contact our wholesale team to get started:
Contact Us for Wholesale Hemp Products
💡 Final Thoughts: Choose a State That Supports Growth
When it comes to opening a smoke shop in 2025, choose a state that gives you room to grow low taxes, high demand, and product-friendly laws. Florida, Texas, and Michigan are leading the way, but states like Tennessee and North Carolina are right behind. We also highly encourage you to do thorough research on these states before planning to open a smoke shop there as laws always change and you should speak to a professional advisor.
And no matter where you’re opening, BakeBoxx can help you:
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Source high-potency bulk THCA flower
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Find unique infused pre-rolls
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Launch your own white-label brand
