Cannabis Tax Hub by Cannabis Promotions

Connecticut 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.

  Connecticut
20–30% Total Effective Tax
California
20–30% Total Effective Tax
Combined Effective Rate20%–26%27%–38%
State Cannabis Excise10.75%15%
Wholesale Excise——
State Sales Tax6.35%7.25%
Typical Local Sales0%2.25%
Max Local Cannabis Tax3%10%
Medical Tax Break?excise exempt, sales exemptsales exempt
Administering AgencyConnecticut Department of Revenue ServicesCalifornia Department of Tax and Fee Administration (CDTFA)

Detailed Notes

Connecticut

Connecticut is replacing its THC-potency tax (0.625¢/mg on flower, 0.9¢/mg on edibles, 2.75¢/mg on other products — roughly 10–15% of retail) with a flat 10.75% excise on gross receipts effective October 1, 2026, under a 2026 law. Combined with 6.35% state sales + 3% municipal tax, the effective rate runs ~20–26% under either structure. Medical cannabis is exempt.

See full Connecticut 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 Cultivation tax was repealed in 2022.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.

See full California tax breakdown →

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For informational purposes only. Not legal, tax, or financial advice. Read full disclaimer