Virginia 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.
|
Virginia
10–20% Total Effective Tax
|
California
20–30% Total Effective Tax
| |
|---|---|---|
| Combined Effective Rate | 12.3%–16.5% | 27%–38% |
| State Cannabis Excise | 6% | 15% |
| Wholesale Excise | — | — |
| State Sales Tax | 5.3% | 7.25% |
| Typical Local Sales | 1% | 2.25% |
| Max Local Cannabis Tax | 3.5% | 10% |
| Medical Tax Break? | excise exempt | sales exempt |
| Administering Agency | Virginia Department of Taxation | California Department of Tax and Fee Administration (CDTFA) |
Detailed Notes
Virginia
Virginia legalized adult possession in 2021, and 2026 budget legislation finally authorizes retail sales beginning July 1, 2027. The enacted framework sets a 6% state cannabis excise (rising to 8% in July 2029) + 5.3% state sales tax + a local option excise of 1–3.5%, for a combined 12.3%–16.5% depending on locality. Until sales begin there is no legal adult-use retail market. Medical cannabis is exempt from the excise.
See full Virginia 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 Cultivation tax was repealed in 2022.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.