Tool

Los Angeles cannabis tax calculator.

California's 15% excise tax, local sales tax and the City of LA cannabis business tax, stacked into one real number.

Updated October 2026

What you really pay

Type the shelf price, or flip to budget mode and type what you want to spend out the door.

Cannabis tax calculator

An estimate. Shops can show taxes differently on the receipt, and discounts usually come off before tax.

The three layers of cannabis tax

State excise tax. California charges a 15% cannabis excise tax on retail sales. The rate rose to 19% on July 1, 2025, then went back down to 15% on October 1, 2025. It is set to stay at 15% until mid-2028, after which the state can adjust it, but never above 19%.

Sales tax. Regular sales tax applies to the price after the excise tax is added, so you pay sales tax on the excise tax too.

City cannabis business tax. The City of Los Angeles taxes shops 10% of gross receipts on adult-use sales and 5% on medical sales. Shops owe this tax. Some show it on the receipt and some build it into the price.

Current rates

TaxRateApplies to
State cannabis excise tax15%Every adult-use retail sale in California
Sales tax, City of Los Angeles10.25%Shelf price plus excise
Sales tax, West Hollywood11%Shelf price plus excise
Sales tax, Culver City11.25%Shelf price plus excise
City of LA cannabis business tax, adult-use10%Owed by shops in the City of Los Angeles
City of LA cannabis business tax, medical5%Owed by shops in the City of Los Angeles

Sales tax rates as of October 1, 2026. Rates change, and we update this guide monthly.

How to keep taxes from stinging

  • Ask about first-time customer offers. Discounts come off before tax.
  • Compare price per gram. Bigger sizes often cost less per gram.
  • Shop in the City of Los Angeles if you are near the edge of West Hollywood or Culver City. Sales tax is lower.
  • Budget for taxes adding roughly a quarter to a third on top of the shelf price, depending on the shop.

Tax FAQ

What is the cannabis excise tax in California?

15 percent of the retail price. It was set at 15 percent from October 1, 2025, and the state can adjust it after mid-2028, capped at 19 percent.

What is the sales tax on cannabis in Los Angeles?

10.25 percent in the City of Los Angeles and unincorporated LA County, 11 percent in West Hollywood and 11.25 percent in Culver City, as of October 2026.

Is sales tax charged on the excise tax?

Yes. California applies sales tax to the price after the cannabis excise tax has been added.

What is the City of LA cannabis business tax?

10 percent of gross receipts on adult-use sales and 5 percent on medical sales. Shops owe it, and how it shows on your receipt depends on the shop.

Do medical patients pay less tax?

Medical sales carry a lower City of LA business tax: 5 percent instead of 10 percent.