With its high population and cannabis-friendly culture, California is by-far the largest cannabis market in the US. This potential is tempered by intra-market competition and a regulatory/licensing and tax structure that can be difficult to navigate and turn a profit.
Medical Use: Yes
Adult Use: Yes
High population/tourism make this the largest cannabis market in the US.
No state-level caps but dictated at the jurisdiction level.
Licensing fees can be high (depending on revenue).
Currently long delays in license approval.
Well-known as the largest market, very competitive. However, broad geography and multitude of markets gives opportunities to many.
California has one of the highest cannabis tax rates in the US.
California Cannabis Details
163,696 sq. miles
Legalized in 1996
Legalized in 2018
2018 Medical Sales
2022 Projected Medical Sales
2020 Adult Use Sales
2022 Projected Adult Use Sales
Bureau of Cannabis Control
# of Dispensaries (allowed/issued)
# of Cultivators (allowed/issued)
# of Manufacturers (allowed/issued)
# of Testing Labs (allowed/issued)
Allowed but complicated rules in effect.
Yes, but on a jurisdictional/city level
Combined Tax Rate
Retail Sales Tax
Flower: $9.25/oz | Leaves: $2.75/oz
Licensing Fees (per year)
*Varies based on gross revenue