California: Marijuana Tax Handbook
California Marijuana Tax Rate
|Sales Tax Medical||Excise Tax Medical||Max Medical Tax||Sales Tax Recreational||Excise Tax Recreational||Max Recreational Tax|
2023 California Marijuana Tax Handbook
Medical marijuana legal in California, but there is no cannabis sales tax for it.
California consumers are required to pay a 7.25 +% sales tax on every purchase of marijuana for personal use. There is also an additional excise tax of 15% on every purchase of marijuana for personal use.
About California Marijuana Tax
No sales tax may be collected if the customer presents a valid medical marijuana identification card as a qualified patient or primary caregiver and a government issued ID. The sales tax on recreational marijuana is a minimum of 7.25% with districts adding local district taxes of anywhere between 0.10% and 1.00%.
The cannabis excise tax applies to the average market price of the cannabis or cannabis product that is sold. The type of transaction - 'arm's length' or 'non-arm's length' will dictate the average market price. An arm’s length transaction reflects the fair market value within the open market where each person knows the price and willingly participates in the transaction. The average market price must also include a markup which is currently 80 percent as determined by the California Department of Tax and Fee Administration. The 15% excise tax is determined from this price.
What is the most recent revenue statistic for California?
Between Jan. 1, 2018 and August 2021, California collected $2.8 billion in tax revenue from all marijuana sales.
Much of the funds goes to the general fund and some are designated for social services.
Is the California Marijuana Tax Weight-Based or Percentage-of-price-Based?
California's marijuana program uses both the Percentage-of-price and Weight-based tax system.
In addition to the gross receipts tax on sales, the following levies apply to marijuana cultivators: $10.08/ounce of flowers, $3.00/ounce of leaves and $1.41/ounce for fresh cannabis.
Does California have a Controlled Substances Tax?
California does not have a Controlled Substances tax involving Marijuana.
How do California's marijuana taxes compare to the states around it?
Note: It is illegal to transport marijuana accross state lines.
For more information about California Marijuana Taxes, visit the California Marijuana Tax page.