The California Department of Tax and Fee Administration (CDTFA) has released new data on marijuana tax revenue for the fourth quarter of 2025.
As of February 18, the agency reports that licensed marijuana retailers generated $255.1 million in total tax revenue for the quarter. That includes $145.5 million in marijuana excise tax and $109.6 million in sales tax collected from marijuana businesses statewide.
The totals reflect returns filed so far and do not include outstanding filings or returns that are still being processed.
Reported revenue for third-quarter 2025 returns has been revised to $285.5 million, up from $283.7 million. This includes $177.7 million in cannabis excise tax and $107.7 million in sales tax. These revisions are a result of amended and late returns, as well as other tax return adjustments.During the third quarter (July – September 2025), the cannabis excise tax rate temporarily increased to 19 percent. The rate returned to 15 percent on October 1, 2025, following Governor Newsom’s signing of AB 564.
The figures also reflect the final installment of the state’s vendor compensation program, which allowed eligible cannabis vendors to retain more than $1.63 million in the fourth quarter. The program allowed retailers who have received an equity fee waiver from the Department of Cannabis Control to retain 20 percent of the cannabis excise tax due on their retail sales of cannabis or cannabis products for 12 months. The program, which began January 1, 2023, ended December 31, 2025.
Since January 2018, cannabis sales have generated more than $7.87 billion in tax revenue, including more than $4.19 billion in cannabis excise tax and more than $3.17 billion in sales tax. This also includes $500.6 million in cultivation tax collected through July 1, 2022, when the cultivation tax was eliminated.
Retailers must collect the cannabis excise tax from buyers based on gross receipts from sales of cannabis or cannabis products. Sales tax is applied to the price after the cannabis excise tax has been added.
Additional cannabis tax revenue data is available on the CDTFA Open Data Portal. To learn more about cannabis taxes in general, visit the Tax Guide for Cannabis Businesses on the CDTFA website.
The California Department of Tax and Fee Administration (CDTFA) has released new data on marijuana tax revenue for the fourth quarter of 2025.
As of February 18, the agency reports that licensed marijuana retailers generated $255.1 million in total tax revenue for the quarter. That includes $145.5 million in marijuana excise tax and $109.6 million in sales tax collected from marijuana businesses statewide.
The totals reflect returns filed so far and do not include outstanding filings or returns that are still being processed.
Reported revenue for third-quarter 2025 returns has been revised to $285.5 million, up from $283.7 million. This includes $177.7 million in cannabis excise tax and $107.7 million in sales tax. These revisions are a result of amended and late returns, as well as other tax return adjustments.During the third quarter (July – September 2025), the cannabis excise tax rate temporarily increased to 19 percent. The rate returned to 15 percent on October 1, 2025, following Governor Newsom’s signing of AB 564.
The figures also reflect the final installment of the state’s vendor compensation program, which allowed eligible cannabis vendors to retain more than $1.63 million in the fourth quarter. The program allowed retailers who have received an equity fee waiver from the Department of Cannabis Control to retain 20 percent of the cannabis excise tax due on their retail sales of cannabis or cannabis products for 12 months. The program, which began January 1, 2023, ended December 31, 2025.
Since January 2018, cannabis sales have generated more than $7.87 billion in tax revenue, including more than $4.19 billion in cannabis excise tax and more than $3.17 billion in sales tax. This also includes $500.6 million in cultivation tax collected through July 1, 2022, when the cultivation tax was eliminated.
Retailers must collect the cannabis excise tax from buyers based on gross receipts from sales of cannabis or cannabis products. Sales tax is applied to the price after the cannabis excise tax has been added.
Additional cannabis tax revenue data is available on the CDTFA Open Data Portal. To learn more about cannabis taxes in general, visit the Tax Guide for Cannabis Businesses on the CDTFA website.
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