SACRAMENTO, Calif. – California’s legal cannabis sales generated about $248 million in tax revenue for the state in the first quarter of 2026. The California Department of Tax and Fee Administration (CDTFA) reported that, as of May 18, it has collected $143.6 million in cannabis excise tax and $104.3 million in sales tax from cannabis retailers’ first-quarter returns. These figures do not include outstanding returns or those still being processed.
Reported revenue for fourth-quarter 2025 returns has been revised to $257.6 million, up from $255.1 million. This includes $146.3 million in cannabis excise tax and $111.3 million in sales tax. The revisions are a result of amended and late returns, as well as other tax return adjustments.
Since January 2018, cannabis sales have generated more than $8.1 billion in tax revenue, including $4.34 billion in cannabis excise tax and more than $3.28 billion in sales tax. This includes $500.6 million in cultivation tax collected through July 1, 2022, when the cultivation tax was eliminated.
Retailers must collect the cannabis excise tax from buyers based on gross receipts from sales of cannabis or cannabis products. Sales tax is applied to the price after the cannabis excise tax has been added.
