California collected $502.8M in cannabis taxes in H1 2025, CDTFA says, bringing lifetime totals since 2018 to $7.3B. (Shutterstock)
- California’s cannabis taxes hit $502.8 million in the first half of 2025, according to new CDTFA figures.
- The second quarter of 2025 brought $259.7 million: $147.3M excise tax and $112.4M sales tax, per the state report.
- Since 2018 rollout, cannabis taxes total $7.3 billion, including $3.9B excise and $2.9B sales tax statewide.
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Tax revenue from cannabis sales in California topped $500 million during the first half of 2025, according to new state data.
The Golden State saw $259.7 million in tax income during the second quarter of the year, a report released Monday, Sept. 15, by the California Department of Tax and Fee Administration shows. The amount reflects $147.3 million in cannabis excise tax and $112.4 million in sales tax.
Revenue from the first quarter of the year was revised up from $237.4 million to $243.1 million, marking $502.8 million.
How Much Money Has California Raised Through Cannabis Taxes?
California has collected more than $7.3 billion in tax revenue from cannabis sales since the taxes took effect in January of 2018, according to the CDTFA.
Roughly $2.9 billion came via the state sales tax, while $3.9 billion were collected under California‘s cannabis excise tax, officials said.
In addition to the standard sales tax, the state places a 19% excise tax on marijuana and cannabis products.
Sales tax is calculated based on the total price of the sale, including excise taxes.
A cultivation tax was also initially collected, but was eliminated in July of 2022.
The largest amount of California cannabis tax generation in a single quarter was $361.4 million, collected in the second quarter of 2021, state data shows.
The smallest collection took place during the first quarter of 2018, the first year cannabis taxes were collected, at $73.2 million.
The excise tax “supports programs for childcare and early childhood development, medical research, youth substance abuse prevention, environmental recovery, and more,” according to a CDTFA statement.
Californians first authorized the regulation and taxation of cannabis products through Proposition 64, or the Control, Regulate, and Tax Adult Use of Marijuana Act of 2016. It took effect on Jan. 1, 2018.
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This article originally appeared on Palm Springs Desert Sun: California reports more than $500 million in cannabis tax revenue this year
Reporting by Brian Day, USA TODAY NETWORK / Palm Springs Desert Sun
USA TODAY Network via Reuters Connect
