California cannabis sales generated more than $250 million in tax revenue during the second quarter of 2025, and over half a billion in the first half combined, officials said on Monday.
“Revenue from cannabis retailers’ second-quarter 2025 tax returns is currently $259.7 million,” according to the California Department of Tax and Fee Administration (CDTFA).
The amount includes $147.3 million reported in a cannabis excise tax and $112.4 million in sales tax from the cannabis business.
The amount reaches $502.8 million when combined with the revised first-quarter revenue amount of $243.1 million.
“The second-quarter figures also reflect the state’s vendor compensation program, which allowed eligible cannabis vendors to retain more than $1.3 million during the quarter,” the CDTFA said.
California voters approved Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act in November 2016.
Since January 2018, cannabis sales have generated over $7.3 billion in tax revenue, including nearly $3.9 billion in cannabis excise tax and more than $2.9 billion in sales tax.