Cannabis Sales Tax: California vs Oregon Rates

California vs Oregon cannabis sales tax

Pick Oregon for the lower tax rate. Pick California for store count and product range. The rate gap runs 17% to 20% in Oregon against 22.25% and up in California.

Cannabis Use Tax vs Sales Tax: Understanding Medical Cannabis Taxes at Pop's Cannabis

Oregon

Oregon charges a 17% state tax on retail cannabis sales. Cities that passed a local measure add up to 3%. Oregon has no state sales tax. Medical cannabis sold to patients carries no retail tax. The top combined rate is 20%.

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California

California charges a 15% excise tax on retail cannabis. State sales tax adds 7.25%. District taxes add 0.15% to 2%. Cities and counties levy a cannabis business tax, most from 1% to 10% of gross receipts. The cultivation tax ended in 2022. State taxes alone total 22.25%.

cannabis excise tax rates by state map

Register totals

A $50 item in Portland costs about $59 with the 17% state tax and about $61 with a 3% city tax. A $50 pre-tax item in California starts near $61 with excise and state sales tax, then climbs with district and city taxes. Shoppers in Los Angeles, Oakland, and San Francisco report combined rates of 30% to 40%.

Receipt rules

• California: the 15% excise tax sits inside the posted shelf price at licensed retailers. Sales tax is added at the register.
• Oregon: the 17% tax is added at the register.

Which to pick

1. Lowest tax bill: Oregon, 17% to 20% total.
2. Widest selection: California, despite the higher rate.

Check the local rate before you buy. City taxes change by vote, and district rates differ by ZIP code.