Colorado vs California Cannabis Tax Comparison
Pick up to six states to compare their cannabis tax stack side by side. Combined effective rate is the total tax you would pay at retail — excise + state sales + typical local sales + max city cannabis tax.
|
Colorado
20–30% Total Effective Tax
|
California
20–30% Total Effective Tax
| |
|---|---|---|
| Combined Effective Rate | 20%–30% | 27%–38% |
| State Cannabis Excise | 15% | 15% |
| Wholesale Excise | 15% | — |
| State Sales Tax | 2.9% | 7.25% |
| Typical Local Sales | 4.5% | 2.25% |
| Max Local Cannabis Tax | 8% | 10% |
| Medical Tax Break? | excise exempt | sales exempt |
| Administering Agency | Colorado Department of Revenue — Marijuana Enforcement Division | California Department of Tax and Fee Administration (CDTFA) |
Detailed Notes
Colorado
15% special marijuana sales tax on retail + 15% wholesale excise (on fair market rate set quarterly by DOR). Medical cannabis is exempt from the 15% retail tax and pays only the standard 2.9% state sales tax. Local jurisdictions can add their own cannabis sales taxes.
See full Colorado tax breakdown →
California
15% state cannabis excise on retail gross receipts. The rate briefly rose to 19% on July 1, 2025 under AB-195’s revenue trigger, then AB 564 (signed September 2025) rolled it back to 15% effective October 1, 2025 and holds it there through June 30, 2028. Cultivation tax was repealed in 2022. Medical patients with a valid MMIC card are exempt from state sales tax. Cities layer their own cannabis business taxes (0%–10%); San Francisco has suspended its local cannabis tax through 2035.