California Cannabis Sales Dip Below $4 Billion Amid Tax Turmoil
The largest cannabis market in the US is under it’s third year of decline
Licensed California cannabis retailers reported $3.9 billion in cannabis sales in 2025, a significant drop from the $4.2 billion in 2024, according to state data released Thursday.
It’s also the third straight year of decline for the country’s largest market. California cannabis sales were $4.4 billion in 2023, according to the state Department of Tax and Fee Administration.
A since-repealed excise tax increase that went into effect on July 1 also may have contributed to the decline in sales in the nation’s largest legal cannabis market.
But sales during the fourth quarter – after the tax hike was repealed Oct. 1 – were still significantly lower than the same period a year ago, according to DTFA data.
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