Los Angeles Cannabis Retail Tax Breakdown:
The topic of cannabis retail taxes is confusing and frustrating for many, ourselves included. The equation for calculating taxes on your order in Los Angeles is as follows:
Excise Tax = Product Price x 15%
Local Tax = (Product Price + Excise Tax) x 10% (or 5% if medical)
Sales Tax = (Product Price + Excise Tax + Local Tax) x 9.5%
Order Total = Product Price + Excise Tax + Local Tax + Sales Tax
- Sales Tax - All dollar amounts collected from cannabis activity should be included in the calculation of gross
receipts. This includes any excise tax, local cannabis tax, and fees collected. Sales Tax rate based on the City and/or County where transaction occurs. Click here to find your local tax rate. (Exempt with State Issued MMIC, not exempt with only a Doctor's Recommendation)
- State Excise Tax - 15% of Average Market Price, only applies to Cannabis Products.
- Los Angeles City Proposition M Tax - 5% on Medical sales and 10% Recreational sales. Applicable on all gross reciepts.