The state of California and local cities place numerous taxes on legal marijuana.
Here is a breakdown of current cannabis taxes
Recreational Marijuana (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
Medical Marijuana Patients:
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%).
- In West Hollywood, all medical marijuana patients pay NO city sales tax (7.5%)