Marijuana Tax Breakdown for Los Angeles Residents

One of the most common questions we receive at Cornerstone Wellness cannabis dispensary is why our taxes are so high. Unfortunately, tax rates are dictated by the city, county, and state where the marijuana dispensary is located, so the dispensary itself does not control the end price of its products. At Cornerstone, we always try to keep our products as affordable as we can, and we have signs posted throughout our shop explaining the local tax rates. However, if you need help understanding Los Angeles marijuana tax laws, here’s a quick breakdown.

Recreational Marijuana

The tax rates for recreational and medical marijuana differ, so you will likely find that your marijuana products are more expensive than those purchased by someone with an MMIC card or doctor’s recommendation, even if they’re purchased from the same weed dispensary. In the city of Los Angeles, recreational marijuana taxes are composed of a 10% city tax, a 15% excise tax, and 9.5% sales tax. This comes to a total of 34.5%. Therefore, if you plan to purchase $100 of marijuana products before tax, your final total will come to $134.50.

Medical Marijuana

If you’re purchasing medical marijuana from a Los Angeles cannabis dispensary, you’ll find the tax rates to be slightly lower. There are two different rates for medical products: one for those with a doctor’s recommendation and one for those with a California MMIC card. For those with a doctor’s recommendation, the tax rates are: 5% city tax, 15% excise tax, and 9.5% sales tax for a total of 29.5% tax. For the same $100 of marijuana product, a customer with a doctor’s recommendation would pay a final total of $129.50. If a customer has a California MMIC card, the sales tax drops to 0% for a total tax rate of 20%. The MMIC holder would therefore pay $120 for $100 of product, versus the $134.50 that a recreational user would have to pay. 

If you’d like to find out exactly how much you’ll be paying in taxes when you visit your local weed dispensary, you can use this convenient LA Times’ tax calculation tool for immediate answers. If you feel that you qualify for financial assistance for your medical marijuana, visit our Cornerstone Cares page to find out more about the Cornerstone Cares Compassion program. Through the SB-34 Dennis Peron Brownie Mary Act, you may qualify for free medical cannabis and cannabis products from Cornerstone marijuana dispensary. For questions regarding product selection, pricing, or financial assistance, call us at (323) 259-8933 today.