The California Department of Tax and Fee Administration is reporting tax revenue from cannabis sales for the third quarter of 2025. Tax revenue from cannabis from July to September is $283.7 million. This figure includes $176.8 million in cannabis excise tax and $106.9 million in sales tax reported from cannabis businesses. That is up from the total 216.3 million collected in the second quarter of 2025. During the third quarter, the cannabis excise tax rate temporarily increased to 19 percent, but the Governor lowered it back to 15 percent on October 1. Retailers pay the excise tax based on gross receipts from cannabis or cannabis product sales. Sales tax is applied to the price after the cannabis excise tax is figured in.