55+ California Cannabis Statistics: Taxes, Access & Illicit Sales

October 2026

55+ California Cannabis Statistics: Taxes, Access & Illicit Sales

California is the largest state-legal cannabis market in the United States. Its licensed sector has contracted for several years while an unlicensed market continues to compete with it. This resource compiles 55+ verified California cannabis statistics from state agencies, the Legislative Analyst’s Office, and market-data firms. It is built for operators, marketers, researchers, and shoppers tracking the market in 2026.

California Cannabis Sales & Market Size

Licensed cannabis sales in California have settled into a narrow range after several years of decline. These figures show where the market stands in 2025 and 2026.

  1. California’s licensed retailers generated $3.88 billion in cannabis sales in 2025, an 8% decline from 2024.
  2. Licensed retail sales totaled $956.7 million in the first quarter of 2026, down from $976.5 million in the same period of 2025.
  3. Licensed retailers sold nearly $1.95 billion of cannabis in the first half of 2026, according to Headset data.
  4. June 2026 sales reached $323.1 million, nearly identical to the roughly $322 million sold in June 2025.
  5. April 2026 was the strongest month of the first half at $334.8 million.
  6. February 2026 was the softest month of the first half at $302.5 million.
  7. Every month of the first half of 2026 exceeded $300 million in licensed sales.

Consumer demand in California's licensed market is shifting between formats, which matters most to shoppers still choosing their first cannabis product. Vapes have overtaken flower, and pre-rolls rank third. 

  1. Vape products generated $350.8 million in California sales in the first quarter of 2026.
  2. Packaged flower generated $312.8 million in the first quarter of 2026, trailing vapes by $38 million.
  3. Pre-rolls ranked third in the first quarter of 2026 with $184.51 million in sales.
  4. Vapes had outsold packaged flower in California for nearly one year as of mid-2026.

If you are comparing formats, see our guide on how to choose your first cannabis product 

California Cannabis Tax Revenue

Cannabis retailers remit excise tax and sales tax to the state every quarter. The latest figures from the California Department of Tax and Fee Administration (CDTFA) show how much the licensed market contributes.

  1. California cannabis retailers remitted $261.7 million in tax revenue for the second quarter of 2026, as of August 18.
  2. The second-quarter 2026 total includes $152 million in cannabis excise tax and $109.7 million in sales tax.
  3. First-quarter 2026 cannabis tax revenue was about $248 million, including $143.6 million in excise tax and $104.3 million in sales tax.
  4. Fourth-quarter 2025 cannabis tax revenue was $255.1 million, including $145.5 million in excise tax and $109.6 million in sales tax.
  5. Third-quarter 2025 revenue was revised to $285.5 million, including $177.7 million in excise tax collected while the rate temporarily stood at 19%.
  6. California cannabis sales have generated nearly $8.4 billion in tax revenue since January 2018.
  7. That cumulative total includes almost $4.5 billion in cannabis excise tax.
  8. It also includes almost $3.4 billion in sales tax.
  9. The cannabis excise tax accounts for more than half of the revenue from retailers’ quarterly returns.
  10. The Legislative Analyst’s Office (LAO) projects cannabis tax revenue of $630 million in fiscal year 2025–26.
  11. The LAO projects cannabis tax revenue of $650 million in fiscal year 2026–27.
  12. A state vendor compensation program let retailers with an equity fee waiver keep 20% of the excise tax due, and eligible vendors retained more than $1.63 million in the fourth quarter of 2025 before it ended.

California Cannabis Tax Policy & Rate Changes

California’s cannabis excise rate changed twice in 2025. The figures below show the rate timeline and the cost impact of ending the cultivation tax.

  1. California’s cannabis excise tax rate temporarily rose to 19% for sales from July 1 through September 30, 2025.
  2. The rate returned to 15% on October 1, 2025, after Governor Newsom signed AB 564 on September 22, 2025.
  3. AB 564 keeps the excise tax rate at 15% through June 30, 2028.
  4. Future excise rate adjustments cannot exceed 19%.
  5. Ending the state cultivation tax reduced production costs by $161 per pound of flower and $46 per pound of trim, according to the Department of Cannabis Control’s (DCC) 2024 market report.

A large share of California’s cannabis consumption still happens outside the licensed market. These DCC figures show how large that gap is and how the licensed sector is performing against it.

  1. Californians consumed an estimated 3.8 million pounds of cannabis in 2024.
  2. About 2.4 million pounds of that came from illicit sources.
  3. Roughly 62% of the cannabis consumed in California in 2024 came from the illicit market.
  4. The licensed market’s estimated share of total consumption has held steady at about 40% since 2021.
  5. An estimated 11.4 million pounds of unlicensed cannabis is produced in California each year.
  6. The wholesale value of unlicensed production was $7.9 billion in 2024.
  7. Licensed cannabis production rose 11.8% to about 1.4 million pounds in 2024.
  8. The gross value of licensed production grew 7.5% to $1.03 billion in 2024.
  9. Nominal cannabis prices in California fell 3.9% in 2024.
  10. Inflation-adjusted wholesale flower prices fell 10% in 2023 and 6% in 2024.
  11. The number of active DCC cultivation licenses fell 18% between the fourth quarter of 2023 and the fourth quarter of 2024, partly due to consolidation into larger license types.
  12. Retail cannabis sales revenue in the first half of 2024 was down 4.4% from the first half of 2023.

To check what is in a licensed product, see how to read a cannabis label in California and how to read cannabis lab tests and COAs. 

Local Cannabis Access & Retail Licensing in California

Cities and counties decide whether to allow cannabis businesses, which creates a patchwork of access across the state. The DCC updated this data in February 2026.

  1. 47% of California cities and counties allow at least one type of cannabis business (256 of 540).
  2. 53% of cities and counties do not allow any type of cannabis business (284 of 540).
  3. 56% of cities and counties do not allow any retail cannabis business (302 of 540).
  4. California had 4.27 retail cannabis licenses per 100,000 residents as of February 2026.
  5. Approximately 16.4 million Californians live in jurisdictions that ban licensed cannabis retail.
  6. 85% of residents in those jurisdictions do not know licensed retailers are prohibited where they live.

Cannabis Enforcement in California

The Unified Cannabis Enforcement Task Force (UCETF) coordinates state, local, and federal action against illicit cannabis operations. Its results are updated quarterly.

  1. UCETF has seized and destroyed 841,000 pounds of illicit cannabis, with data reviewed through December 31, 2025.
  2. The seized illicit product had an estimated value of $1.3 billion.
  3. UCETF has eradicated 1.3 million illegal cannabis plants.
  4. UCETF has served more than 750 search warrants across 29 counties.
  5. California reported seizing more than 63,000 pounds of illegal cannabis in a single three-month period, announced in July 2026.

California Public Opinion on Cannabis Legalization

Voter support for legal cannabis has grown since Proposition 64 passed. The most recent statewide figures come from the Public Policy Institute of California (PPIC) and the DCC.

  1. 56% of California adults age 21 and older consume or have consumed cannabis.
  2. A record-high 64% of Californians said cannabis use should be legal in PPIC’s June 2023 survey.
  3. 61% of Californians said Proposition 64 has turned out to be mostly a good thing (PPIC, June 2023).
  4. Support for legal cannabis use was 72% among Californians ages 18 to 34, compared with 61% among those 35 and older (PPIC, June 2023).
  5. 65% of Californians ages 18 to 34 favor retail cannabis sales in their community, compared with 53% of those 35 and older (PPIC, June 2023).

California's licensed cannabis market is holding relatively steady but remains under pressure. Licensed retailers sold $3.88 billion in 2025, yet roughly 62% of the cannabis consumed in 2024 came from illicit sources, and 56% of cities and counties still do not allow retail. For shoppers, buying from a licensed dispensary like Rebud Cannabis Dispensary means products that go through state testing and labeling. 

References

  1. California Department of Tax and Fee Administration: Cannabis Sales Bring in Almost $262 Million in Tax Revenue for Second Quarter 2026
  2. California Department of Tax and Fee Administration: Cannabis Sales Bring in Almost $248 Million in Tax Revenue for First Quarter 2026
  3. California Department of Tax and Fee Administration: Cannabis Sales Bring in $255.1 Million in Tax Revenue for Fourth Quarter 2025
  4. California Department of Tax and Fee Administration: New Cannabis Excise Tax Rate Effective October 1, 2025
  5. Legislative Analyst’s Office: Cannabis Tax Revenue Update (2026 Q2)
  6. City of Los Angeles Department of Cannabis Regulation: California Cannabis Taxes (AB 564)
  7. Department of Cannabis Control: Where Cannabis Businesses Are Allowed
  8. Department of Cannabis Control: When Legal Cannabis Is Unavailable, What Fills the Gap?
  9. Department of Cannabis Control / ERA Economics: California Cannabis Market 2024 Report, Executive Summary
  10. Department of Cannabis Control: Unified Cannabis Enforcement Task Force (UCETF)
  11. Department of Cannabis Control: California Continues Illegal Cannabis Crackdown, Seizing More Than 63,000 Pounds in Three Months
  12. Highly Capitalized: California’s Legal Cannabis Market Holds Steady at Midyear
  13. The Marijuana Herald: California Marijuana Sales Reach $323 Million in June, Nearly $2 Billion Sold in First Half of 2026
  14. Public Policy Institute of California: Californians Remain Positive about Marijuana Legalization