The state of California and local cities place numerous taxes on legal cannabis.
Here is a breakdown of current cannabis taxes
Recreational (adult-use) customers:
- State excise tax for cannabis: 15%
- State sales tax: 9.5% (in West Hollywood and Los Angeles)
- City cannabis sales tax: 7.5% in West Hollywood; 10% in Los Angeles
Patients with a medical marijuana ID card (MMIC) or doctor’s recommendation save on some of the taxes above. This is a little confusing. Here are the details:
- All patients pay state excise tax (15%).
- Patients with a MMIC do not pay state sales tax (9.5%)
- Patients with a doctor’s recommendation (but no MMIC) pay state sales tax (9.5%).
- Depending on the city, medical patients may pay a reduced or no city cannabis sales tax
- In West Hollywood, all medical patients pay NO city sales tax (7.5%)
- In LA, all medical patients pay 5% cannabis tax instead of 10%