Summer 2025 Cannabis Sales In Riverside County Outpace All But Los Angeles, San Diego

RIVERSIDE COUNTY, CA — Riverside County's cannabis sales are thriving compared to most other California counties.

On Tuesday, the California Department of Tax and Fee Administration reported tax revenue from cannabis sales for the third quarter of 2025 (July-September).

The most significant contributor to the state's Q3 cannabis purse was Los Angeles County, which reported $276.7 million in taxable sales. San Diego County was second, with $129.3 million in taxable sales during Q3, according to CDTFA figures.

Riverside County reported the third-highest Q3 sales: $87.8 million.

Cannabis sales statewide totaled $939.9 million during Q3.

Tax on cannabis sales varies by county. In California, cannabis retailers are responsible for collecting a 15 percent* cannabis excise tax from customers who buy cannabis products, but customers also pay state and local taxes, which are applied to the price after the cannabis excise tax is added, according to CDTFA.

In Riverside County (unincorporated areas), the state and local tax combined is 7.75%. In some Riverside County cities, the combined state and local tax is higher. For example, in Lake Elsinore and Wildomar, which both permit cannabis businesses, the rate is 8.75%. Palm Springs, also a city that permits cannabis, is at 9.25%.

Statewide, total tax revenue from cannabis retailers’ third-quarter returns was $283.7 million. The figure includes $176.8 million in cannabis excise tax and $106.9 million in sales tax reported from cannabis businesses. The figures do not include outstanding returns or returns that are still being processed, according to the CDTFA.

Since January 2018, cannabis sales have generated more than $7.61 billion in tax revenue for California, including more than $4.05 billion in cannabis excise tax and more than $3.06 billion in sales tax.

*During Q3, the cannabis excise tax rate temporarily increased to 19 percent. The rate returned to 15 percent on Oct. 1, 2025, following Governor Newsom's signing of AB 564. The measure stopped a planned increase in the state's cannabis excise tax and maintains the rate at 15% to support the legal cannabis market, which competes with the large illicit market.