California cannabis taxes higher in 2022

From January 1, 2022, the California Department of Tax and Fee Administration is raising the taxes on cannabis. A report issued by the same Department states that "the cultivation tax rates reflect an adjustment for inflation as required by the Cannabis Tax Law."

The tax applies to flowers, leaves, and fresh cannabis plants.

  • Tax on flower per dry-weight ounce will go from $9.65 to $10.08
  • Tax on leaves per dry-weight ounce will go from $2.87 to $3.00
  • Tax on fresh cannabis plants per ounce will go from $1.35 to $1.41

"The California Department of Tax and Fee Administration (CDTFA) is responsible for determining the cannabis mark-up rate every six months. We have determined the cannabis mark-up rate will remain at 80 percent through at least June 30, 2022. To make this determination, we analyzed statewide market data to calculate the mark-up rate between the wholesale cost and the retail selling price of cannabis and cannabis products," the report stated.

"The 15 percent cannabis excise tax is based on the average market price of the cannabis or cannabis products sold in a
retail sale." 

For more information:
California Department of Tax and Fee Administration
www.cdtfa.ca.gov


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