Illinois 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.
|
Illinois
10–20% Total Effective Tax
|
California
20–30% Total Effective Tax
| |
|---|---|---|
| Combined Effective Rate | 19%–41% | 27%–38% |
| State Cannabis Excise | 25% | 15% |
| Wholesale Excise | 7% | — |
| State Sales Tax | 6.25% | 7.25% |
| Typical Local Sales | 2.75% | 2.25% |
| Max Local Cannabis Tax | 3.5% | 10% |
| Medical Tax Break? | excise exempt, sales 1% | sales exempt |
| Administering Agency | Illinois Department of Revenue | California Department of Tax and Fee Administration (CDTFA) |
Detailed Notes
Illinois
Potency-based Cannabis Cultivation Privilege Tax: 10% on flower ≤35% THC, 20% on infused products, 25% on flower >35% THC. Plus 7% wholesale tax on cultivators. Medical cannabis pays only 1% state sales tax and no excise.
See full Illinois 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 Cultivation tax was repealed in 2022.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.