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California retail is open at city level, so get your city or county permit first, then apply to the state
CannDev in California
Entering California
OpenRetail is open at city level: a shop first finishes any permit its city or county requires, then applies to the Department of Cannabis Control for a state retail license. Adult-use and medical. Cannabis is legal in California for both medical and adult (recreational) use, and the Department of Cannabis Control licenses and regulates cannabis businesses.2, 11, 1
- License types and caps
- Retail comes in two types: Type 10 storefront retailer (a shop, which may also deliver) and Type 9 non-storefront retailer (delivery only). Other license types: cultivation, distribution, manufacturing, testing laboratories, microbusiness and event organizers. A business doing more than one activity may need more than one license.3, 9
- Application window
- Retail starts with the city or county: you must first finish any permit your city or county requires, then apply to the state through the Department's online licensing systems. The Department reviews applications in the order it receives them and checks with the city or county that you meet local requirements.2, 11
- Local opt-out
- Yes. Cities and counties can ban cannabis businesses, including retail. By the Department's count, 302 of California's 540 cities and counties do not allow any retail cannabis business. Local governments can also set more restrictive shop hours.4, 7
Ownership and social equity, taxes, delivery and testing, upcoming changes and the numbered sources are in the California rules panels on this page.
Take a look at CannDev’s opt in map showing which cities allow for retail stores in California
We are based in Santa Rosa, California and have been focused on retail developments in this market since 2017. We have put into development over 50 locations in California and have played a part of 13 winning retail licenses so far.
Our successful developments are located in San Francisco, Los Angeles, Fresno, Santa Rosa, Oxnard, Tracy, El Centro, and more.
To gain access to our new off-market deals in cities opening soon for licensing please fill out the form here.
We’re excited for cities in California to open up for cannabis retail and allow for more access to the public.
Latest California News
Latest regulatory update
California cannabis packaging rules 2027 bring new beverage labels and testing access, plus October pesticide levels and a San Diego CEQA suit.
Regulatory Detail
Applicants must disclose all owners and financial interest holders. The state offers equity fee relief to businesses with no more than $5 million a year in gross revenue that are at least 50 percent owned by people harmed by cannabis criminalization; fee waiver funding is used up, but fee deferrals are still available. Several cities and counties run their own equity programs.5, 2, 1
A 15 percent state cannabis excise tax on retail sales, set from 1 October 2025 through 30 June 2029, collected from the buyer, plus state and local sales tax. Qualifying medical patients with a state medical ID card are exempt from sales tax but still pay the excise tax. Local cannabis business taxes are included in the amount the excise tax is charged on.6
- Delivery: storefront retailers may deliver, and a separate non-storefront license allows delivery-only retail. Delivery drivers must be back at the shop by 10 p.m.
- Testing: retailers may sell only cannabis goods that have passed testing and quality assurance review.
- Packaging: state rules set packaging requirements to prevent contamination and tell buyers what is inside.
- Adopted: Under AB 8, products containing concentrates from industrial hemp count as cannabis products, and the cannabis excise tax applies to their retail sale.10
- Comment open: Proposed rule would let licensees with both medical and adult-use designations get separate licenses through a faster process, including for a different legal entity; public comment is open through 14 December 2026.8
- In effect: The emergency rule letting a retailer set up a second, related business so one premises can hold separate adult-use and medical licenses is in effect until it expires on this date.8
- Proposed: Proposed rule on group tagging of cannabis plants; public comment closed 2 October 2026.8
- In effect: Updated pesticide testing action levels took effect.8
- California Department of Cannabis Control, California's cannabis laws (regulator, seen 26 October 2026)
- California Department of Cannabis Control, How to apply for a license (regulator, seen 26 October 2026)
- California Department of Cannabis Control, Retail license types (regulator, seen 26 October 2026)
- California Department of Cannabis Control, Where cannabis businesses are allowed (regulator, seen 26 October 2026)
- California Department of Cannabis Control, Equity fee relief (regulator, seen 26 October 2026)
- California Department of Tax and Fee Administration, Tax guide for cannabis retailers (regulator, seen 26 October 2026)
- California Department of Cannabis Control, Retail (licensee resources) (regulator, seen 26 October 2026)
- California Department of Cannabis Control, Rulemaking (regulator, seen 2 November 2026)
- California Department of Cannabis Control, License types (regulator, seen 26 October 2026)
- California Department of Tax and Fee Administration, Tax guide for cannabis businesses (regulator, seen 26 October 2026)
- California Department of Cannabis Control, Access the license portals (regulator, seen 26 October 2026)
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