Cannabis Tax Hub by Cannabis Promotions

Ohio 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.

  Ohio
10–20% Total Effective Tax
California
20–30% Total Effective Tax
Combined Effective Rate16.5%–17.5%27%–38%
State Cannabis Excise10%15%
Wholesale Excise——
State Sales Tax5.75%7.25%
Typical Local Sales1.5%2.25%
Max Local Cannabis Tax0%10%
Medical Tax Break?excise exemptsales exempt
Administering AgencyOhio Department of TaxationCalifornia Department of Tax and Fee Administration (CDTFA)

Detailed Notes

Ohio

10% state adult-use cannabis excise tax + state + local sales tax. Ohio medical marijuana is not subject to the 10% excise.

See full Ohio 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 Cultivation tax was repealed in 2022.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