--- title: "New Law: Cannabis Tax Cut Approved!" description: California rolls back cannabis tax hike to support legal market, freezing the tax rate at 15% until 2028 to boost the industry against the illicit market. image: https://420intel.com/hubfs/sian-labay-FY48czKbgsg-unsplash.jpg --- [![420intel.com](https://420intel.com/hs-fs/hubfs/Asset%2016-1.png?width=300&height=162&name=Asset%2016-1.png "420intel.com")](https://420intel.com) - [Home](https://420intel.com) - [Advertise](https://420intel.com/advertise) - [Directory](https://420intel.com/directory) - [Topics](https://420intel.com/blog) - [Recreational News](https://420intel.com/blog/tag/recreational-cannabis-news) - [Business News](https://420intel.com/tag/cannabis-business-news) - [Politics](https://420intel.com/tag/cannabis-politics) - [Technology](https://420intel.com/tag/cannabis-technology-news) - [Research](https://420intel.com/tag/medical-cannabis-news) - [Contact](https://420intel.com/contact-us) - [Follow us on Facebook](https://www.facebook.com/420intel) - [Follow us on LinkedIn](https://www.linkedin.com/company/420-intel/) - [Follow us on Twitter](https://x.com/420intel) - [Follow us on Instagram](https://www.instagram.com/420intel) ### Press ESC to close [![420intel.com](https://420intel.com/hs-fs/hubfs/Asset%2016-1.png?width=300&height=162&name=Asset%2016-1.png "420intel.com")](https://420intel.com) - [Home](https://420intel.com) - [Advertise](https://420intel.com/advertise) - [Directory](https://420intel.com/directory) - [Topics](https://420intel.com/blog) - [Recreational News](https://420intel.com/blog/tag/recreational-cannabis-news) - [Business News](https://420intel.com/tag/cannabis-business-news) - [Politics](https://420intel.com/tag/cannabis-politics) - [Technology](https://420intel.com/tag/cannabis-technology-news) - [Research](https://420intel.com/tag/medical-cannabis-news) - [Contact](https://420intel.com/contact-us) - [Follow us on Facebook](https://www.facebook.com/420intel) - [Follow us on LinkedIn](https://www.linkedin.com/company/420-intel/) - [Follow us on Twitter](https://x.com/420intel) - [Follow us on Instagram](https://www.instagram.com/420intel) # New Law: Cannabis Tax Cut Approved! - [![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=80&height=80&name=Buzz-No%20Outline-2.png) Buzz](https://420intel.com/blog/author/buzz) - [Marijuana legalization](https://420intel.com/blog/tag/marijuana-legalization) - 7 October 2025 **California Rolls Back Cannabis Tax Hike to Support Legal Market Growth** California’s legal cannabis industry just got a much-needed boost with the passage of a new law aimed at easing financial pressure on licensed operators. The legislation reverses a recent **cannabis tax** hike that had been straining the already struggling market. Governor Gavin Newsom signed the measure last week, calling it a crucial step to keep the legal industry competitive against the state’s thriving illegal market. Why the Cannabis Tax Rollback Matters Earlier this year, the state’s **cannabis tax** rate jumped from 15% to 19%, a move that many business owners said pushed consumers toward cheaper, unregulated products. The increase came at a time when the legal market was already losing ground with the Department of Cannabis Control estimating that only about 40% of total cannabis consumption in California comes from licensed sources. By rolling back the **cannabis tax** hike, lawmakers hope to make legal cannabis more affordable and accessible. “We’re rolling back this cannabis tax hike so the legal market can continue to grow, consumers can access safe products, and our local communities see the benefits,” Governor Newsom said after signing the bill. Details of the New Cannabis Tax Law Assembly Bill 564, introduced by Assemblymember Matt Haney (D–San Francisco), freezes the state’s **cannabis tax** at 15% until 2028. The goal is to give the industry stability and breathing room to compete with the illicit market, which faces none of the regulatory costs or **cannabis tax** burdens that legal businesses shoulder. “California’s cannabis economy can bring enormous benefits to our state, but only if our legal industry is given a fair chance to compete against the untaxed and unregulated illegal market,” Haney said. “AB 564 helps level the playing field.” The **cannabis tax** freeze ensures that businesses won’t face additional state tax hikes for at least the next four years, allowing them to invest in growth, product quality, and compliance.   Industry Reaction and Future Outlook Advocacy groups across the state applauded the decision. The Origins Council, a nonprofit representing small cannabis farmers in rural California, was one of several organizations to sponsor the bill. In a statement, the group said, “There’s much more to be done, but AB 564 is a step in the right direction.” By stabilizing the **cannabis tax** and reducing financial strain, California aims to strengthen its legal market, encourage consumer confidence, and promote fair competition. As the state continues refining its approach to regulation and taxation, the new **cannabis tax** law represents a meaningful step toward a sustainable, equitable, and thriving cannabis economy.   [by Local News Matters](https://localnewsmatters.org/2025/10/06/bill-reversing-cannabis-tax-hike-becomes-law/)   [Marijuana legalization](https://420intel.com/blog/tag/marijuana-legalization) ![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=200&height=200&name=Buzz-No%20Outline-2.png) #### [Buzz](https://420intel.com/blog/author/buzz) At 420 Intel, we cover cannabis legalization news throughout the world, offer reliable information for cannabis business owners, detail technological advances that impact the marijuana industry, cover marijuana rallies from across the globe, and everything in between. - - - [Cannabis Business News](https://420intel.com/blog/tag/cannabis-business-news) [![South Lake Tahoe Slashes Cannabis Taxes by 3%](https://420intel.com/hs-fs/hubfs/elsa-olofsson-ZYEk3w9q2DM-unsplash.jpg?width=550&height=395&name=elsa-olofsson-ZYEk3w9q2DM-unsplash.jpg)](https://420intel.com/blog/south-lake-tahoe-slashes-cannabis-taxes-by-3) - [![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=80&height=80&name=Buzz-No%20Outline-2.png) Buzz](https://420intel.com/blog/author/buzz) - 7 November 2025 #### [South Lake Tahoe Slashes Cannabis Taxes by 3%](https://420intel.com/blog/south-lake-tahoe-slashes-cannabis-taxes-by-3) **SOUTH LAKE TAHOE, Calif.** – With only three members voting, the South Lake Tahoe City Council... [Cannabis Laws](https://420intel.com/blog/tag/cannabis-laws) [![New Bill: Cannabis Reinvestment Funds Accepted Now](https://420intel.com/hs-fs/hubfs/elsa-olofsson-12-Zs1xIEtA-unsplash.jpg?width=550&height=395&name=elsa-olofsson-12-Zs1xIEtA-unsplash.jpg)](https://420intel.com/blog/new-bill-cannabis-reinvestment-funds-accepted-now) - [![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=80&height=80&name=Buzz-No%20Outline-2.png) Buzz](https://420intel.com/blog/author/buzz) - 11 September 2025 #### [New Bill: Cannabis Reinvestment Funds Accepted Now](https://420intel.com/blog/new-bill-cannabis-reinvestment-funds-accepted-now) The Talbot County Council has taken a major step toward supporting local communities by introducing... [Cannabis Technology News](https://420intel.com/blog/tag/cannabis-technology-news) [![Bud & Mary's launches TheMyx, a THC powder promising to turn anything into an 'edible'](https://420intel.com/hs-fs/hubfs/thumbnail_image001-1.jpg?width=550&height=395&name=thumbnail_image001-1.jpg)](https://420intel.com/blog/bud-marys-launches-themyx-a-thc-powder-promising-to-turn-anything-into-an-edible) - [![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=80&height=80&name=Buzz-No%20Outline-2.png) Buzz](https://420intel.com/blog/author/buzz) - 4 March 2025 #### [Bud & Mary's launches TheMyx, a THC powder promising to turn anything into an 'edible'](https://420intel.com/blog/bud-marys-launches-themyx-a-thc-powder-promising-to-turn-anything-into-an-edible) A new cannabis product promising to make it easier to turn anything into an edible is now available... - [Follow us on Facebook](https://www.facebook.com/420intel) - [Follow us on LinkedIn](https://www.linkedin.com/420intel) - [Follow us on Twitter](https://twitter.com/420intel) - [Follow us on Instagram](https://www.instagram.com/420intel) Back to Top ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Buzz", "url" : "https://420intel.com/blog/author/buzz" }, "dateModified" : "2025-10-07T14:48:07.299Z", "datePublished" : "2025-10-07T11:36:46.000Z", "headline" : "New Law: Cannabis Tax Cut Approved!", "image" : [ "https://420intel.com/hubfs/sian-labay-FY48czKbgsg-unsplash.jpg" ], "mainEntityOfPage" : { "@id" : "https://420intel.com/blog/new-law-cannabis-tax-cut-approved", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://420intel.com/hubfs/Asset%2016.png" }, "name" : "420 Intel" } } ```