If you’ve ever been surprised by your total at checkout, you’re not alone. One of the most common questions we hear at Tropicanna is:
“Why is my $40 eighth coming out to over $50?”
The answer is simple: California cannabis taxes — and no, we don’t add them just because we feel like it.
What Cannabis Taxes Are You Paying?
When you shop at a licensed dispensary like Tropicanna, your total includes three layers of taxes:
1. State Cannabis Excise Tax
– 19% of the retail price (increased July 2025)
– This is charged by the state and applied to all cannabis purchases
2. California Sales Tax
– Fixed at 7.75% in Santa Ana
– This is the same tax applied to things like clothes, electronics, and groceries (if not exempt)
3. Santa Ana Cannabis City Tax
– 8% on recreational purchases
– 6% on medical purchases with a valid MMIC card
– This is specific to Santa Ana and helps fund city programs, infrastructure, and public safety
That Adds Up Fast…
Let’s say you buy $100 worth of cannabis products. Here’s a simplified example of how the tax might break down:
– $19.00 (Excise Tax)
– $7.75 (Sales Tax)
– $8.00 (City Cannabis Tax)
= $34.75 in taxes
So your $100 order becomes $134.75 and that’s before any discounts or rewards are applied.
It’s Not a Delivery Thing, Either
Whether you order in-store or get it delivered to your door, the taxes are exactly the same. The law doesn’t distinguish between buying at the counter or online.
We Get It! It’s Frustrating!
At Tropicanna, we work hard to ease the pain with:
– Weekly deals on some of our top products
– A robust loyalty program so you can earn rewards with every purchase
– Stackable savings when possible, so you still get value
But we also want to be transparent: we don’t control the taxes. Every licensed dispensary in California is required to charge the same taxes, it’s not just us. Every cent collected goes directly to the state, county, or city.
Want to Speak Up About Cannabis Taxes?
If you think cannabis taxes in California are too high, you’re not alone. Many operators and consumers are asking the state to reduce the burden so the legal market can compete fairly.
If you’d like to make your voice heard, you can send a message directly to lawmakers using this link:
https://actionnetwork.org/letters/halt-a-tax-increase-on-ca-cannabis-this-year
Final Thoughts
We love our customers, and we believe in the future of legal cannabis, but it’s going to take collaboration, education, and action.
Thanks for shopping with us, and for supporting legal cannabis done the right way.