District of Columbia 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.
|
District of Columbia
Under 10% Tax
|
California
20–30% Total Effective Tax
| |
|---|---|---|
| Combined Effective Rate | 6.5%–6.5% | 27%–38% |
| State Cannabis Excise | 0% | 15% |
| Wholesale Excise | — | — |
| State Sales Tax | 6.5% | 7.25% |
| Typical Local Sales | 0% | 2.25% |
| Max Local Cannabis Tax | 0% | 10% |
| Medical Tax Break? | None | sales exempt |
| Administering Agency | DC Office of Tax and Revenue | California Department of Tax and Fee Administration (CDTFA) |
Detailed Notes
District of Columbia
DC allows home grow and gifting under Initiative 71 but has no commercial adult-use retail market. Medical cannabis sales are taxed at the general sales tax rate — 6.5% since October 2025, scheduled to rise to 7% in October 2026 — with an annual 4/20-week sales-tax holiday. Congressional appropriations rider continues to block a commercial recreational program.
See full District of Columbia 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 Cultivation tax was repealed in 2022.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.