San Francisco, California Cannabis Tax Rate
24.5% totalAdministering agencies: California Department of Tax and Fee Administration (CDTFA) · Updated for 2026
A legal cannabis purchase in San Francisco is taxed at a combined effective rate of about 24.5% — all of it from California's state-level taxes, since San Francisco does not add a local cannabis tax. That makes San Francisco the lowest-taxed of the 6 major California cities tracked here — versus about 34.5% in Los Angeles. On a typical $100.00 dispensary purchase that works out to roughly $24.50 in tax, or about $124.50 out the door.
San Francisco has suspended its city cannabis business tax entirely — through 2035 under a Board of Supervisors vote — to help licensed dispensaries compete with the unlicensed market, so shoppers pay only the state excise and sales taxes.
How Much Is Cannabis Tax in San Francisco?
Use these worked examples to see what San Francisco's 24.5% combined cannabis tax adds to a dispensary purchase. Figures apply the California state excise, 7.25% state sales tax, typical local sales tax to the pre-tax price.
| Pre-tax price | Total tax | San Francisco city tax | You pay |
|---|---|---|---|
| $50.00 | $12.25 | $0.00 | $62.25 |
| $100.00 | $24.50 | $0.00 | $124.50 |
| $200.00 | $49.00 | $0.00 | $249.00 |
Estimates treat all taxes as applied to the retail price; actual receipts vary by product, potency tax (where applicable), and exact local sales rate. Model a specific basket with the San Francisco tax calculator.
San Francisco Cannabis Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| California Cannabis Excise | 15% | State-imposed retail excise |
| California State Sales Tax | 7.25% | Medical cannabis exempt |
| Typical Local Sales Tax | 2.25% | County / district average |
| San Francisco Cannabis Business Tax | 0% | No city cannabis tax levied |
| Combined Effective Rate | 24.5% | What you actually pay at retail |
Official source: California Department of Tax and Fee Administration (CDTFA) ↗ · rates compiled 2026-08-11 · city rates set by local ordinance.
How Medical Cannabis Is Taxed in San Francisco
Medical patients with a valid MMIC card are exempt from state sales tax, but still pay the 15% state cannabis excise. In practice that trims roughly $7.25 off every $100.00 spent versus an adult-use purchase in San Francisco.
Why Is Cannabis Taxed This Much in San Francisco?
Cannabis in San Francisco carries layers of tax that ordinary retail goods never see. California adds its 15% cannabis excise on top of ordinary sales tax. Because San Francisco does not add a local cannabis tax, shoppers here pay only the California state-level taxes — which keeps San Francisco on the lower-cost end of the California market.
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.
San Francisco vs Other California Cities
Local cannabis taxes vary city to city in California. Here is how San Francisco stacks up against the other major markets we track, ranked from highest to lowest combined effective rate:
| City | City Cannabis Tax | Combined Effective Rate |
|---|---|---|
| Los Angeles | 10% | 34.5% |
| Oakland | 10% | 34.5% |
| San Diego | 8% | 32.5% |
| Long Beach | 8% | 32.5% |
| Sacramento | 4% | 28.5% |
| San Francisco (this page) | 0% | 24.5% |
See the full California cannabis tax guide →
Frequently Asked Questions
What is the cannabis tax rate in San Francisco, California?
How much tax will I pay on a $100 cannabis purchase in San Francisco?
How much is the cannabis business tax in San Francisco?
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Are medical cannabis patients exempt from San Francisco's tax?
Where can I buy cannabis in San Francisco?
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