California Gov. Gavin Newsom (D) said this week the state has generated nearly $8.4 billion in tax revenues from legal cannabis, including about $4.5 billion in excise taxes and $3.4 billion from the state’s standard sales tax on cannabis purchases.
The total includes $261.7 million in the second quarter of 2026, a slight bounce back from the first quarter’s $248 million.
Cannabis tax revenue in the state goes toward childcare and early childhood development programs, youth substance abuse prevention, medical research, and environmental recovery.
“We are building a legal cannabis market that generates billions for Californians, and going after the illicit operators who undermine it. That’s public safety — protect consumers, support the businesses playing by the rules, and put the revenue to work in our communities.” — Newsom, in a statement
Adult-use cannabis sales launched in California in 2018.
Gov. Newsom also signed a bill this week tightening cannabis advertising rules to prevent marketing materials that could be appealing to children.
Meanwhile, although it remains the largest cannabis market among U.S. states, Canada surpassed California in total monthly sales in June.
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