Is Weed Legal in California? 2025 Laws, Taxes & Lounges
Jun 12th 2025
Is Weed Legal in California in 2025?
Yes, weed is legal in California in 2025 for both recreational and medical use. Adults aged 21 and over can legally buy, use, and grow cannabis under state law.
California Allows Recreational and Medical Cannabis
California legalized medical marijuana in 1996 through Proposition 215. In 2016, Proposition 64 made recreational cannabis legal for adults 21 and older.
Residents can carry up to 28.5 grams of cannabis or 8 grams of concentrate. They may also grow up to six cannabis plants at home for personal use.
Local governments can still regulate or ban cannabis businesses. Always check local rules before buying or using cannabis in your city.
Cannabis Lounges Are Now Legal in California
As of January 1, 2025, California allows licensed dispensaries to open cannabis lounges. These lounges can now serve non-psychoactive food and drinks.
They may also host live performances, creating social spaces for safe consumption. West Hollywood and Coachella already support these new cannabis cafes.
Assembly Bill 1775 made this change possible. The bill aims to support the legal market and attract cannabis tourism.
California Increased Its Cannabis Excise Tax in 2025
Starting July 1, 2025, California raised its cannabis excise tax from 15% to 19%. This tax applies to all retail cannabis sales.
Local cities like San Diego have also raised their cannabis sales tax. Some cities now have total cannabis tax rates exceeding 36%.
Industry leaders argue this tax hike may hurt the legal market. Many worry it could push buyers back to unregulated sellers.
Cannabis Sales Are Declining in 2025
California reported its largest cannabis sales drop since legalization. In Q1 2025, taxable cannabis sales fell to $1.08 billion — down 11% from 2024.
Many dispensaries are closing or selling their licenses at deep discounts. Some licenses are now free if the buyer agrees to take over the lease.
Experts blame high taxes, overregulation, and competition from illegal sellers for the market decline.
New Bills May Help Stabilize the Industry
Assembly Bill 564 aims to freeze the cannabis excise tax at 15%. The bill passed the State Assembly and awaits Senate review.
Supporters believe lower taxes will help licensed businesses survive. They argue it will also bring more consumers into the legal system.
The outcome of this bill could shape the future of cannabis in California.
What You Can and Cannot Do with Cannabis in California
You can legally buy cannabis from licensed dispensaries. You can use it at home or in licensed cannabis lounges.
You cannot use cannabis in public spaces, including parks or sidewalks. It is also illegal to drive under the influence of cannabis.
You may not consume cannabis within 1,000 feet of schools or daycares. Always store cannabis securely, especially around minors.
Final Thoughts: Legal, but Not Without Challenges
Weed is legal in California, but the legal market faces growing pains. New cannabis lounges offer hope for social use and economic growth.
However, rising taxes and falling sales threaten many cannabis businesses. Lawmakers are working to find a balance between regulation and growth.
Staying informed helps consumers make legal and safe choices in California’s evolving cannabis landscape.