California Marijuana Sales Generate Nearly $248 Million in Tax Revenue in First Quarter of 2026

California marijuana retailers generated nearly $248 million in tax revenue for the state during the first quarter of 2026, bringing the state’s total marijuana tax haul to more than $8.1 billion since adult-use sales began in 2018.

The California Department of Tax and Fee Administration reported that, as of May 18, the state had collected $143.6 million in marijuana excise tax and $104.3 million in sales tax from first-quarter returns. The agency said the figures do not include outstanding returns or those still being processed, meaning the total could increase.

The quarterly total was slightly below the revised figure for the fourth quarter of 2025, when marijuana retailers generated $257.6 million in tax revenue. That total includes $146.3 million in excise tax and $111.3 million in sales tax, after adjustments from amended and late returns.

Since January 2018, California’s legal marijuana market has brought in more than $8.1 billion in tax revenue. That includes $4.34 billion in marijuana excise tax, more than $3.28 billion in sales tax and $500.6 million from the cultivation tax, which was eliminated on July 1, 2022.

The state’s marijuana excise tax accounts for more than half of the revenue reported through retailers’ quarterly returns. Revenue from the tax supports childcare and early childhood development, medical research, youth substance abuse prevention, environmental restoration and other programs.

Retailers are required to collect the marijuana excise tax from buyers based on gross receipts from the sale of marijuana and marijuana products. Sales tax is then applied to the price after the excise tax has been added.

California voters legalized marijuana in November 2016 through Proposition 64, with licensed adult-use sales launching in January 2018. Adults 21 and older may possess up to one ounce of marijuana and up to eight grams of concentrated marijuana.