Cannabis Tax Rates by State: What You Pay at the Register
Adult-use cannabis taxes run about 10% to 40% at the register. Compare state excise rates, sales tax, and local add-ons before you order.
How Much is Cannabis Tax in California?
The cannabis tax in California is a combination of state and local taxes. As of 2023, the state tax is 15% of the retail price. Local taxes can vary widely, with some cities imposing additional taxes. This guide outlines the details and provides an estimate of the total tax you might pay.
State Tax
The California State Board of Equalization (BOE) imposes a 15% tax on the retail sale of cannabis. This tax is applied to the purchase price before any other fees or taxes.
Local Taxes
Local governments in California have the authority to impose their own cannabis taxes. These taxes can vary significantly, with some cities and counties charging up to 10% on top of the state tax.
Total Tax Estimate
As an example, if you buy cannabis for $100, the state tax would be $15, and the local tax could be an additional $10, making the total tax $25. This estimate does not include any potential sales tax or other fees.