How do I update my excise tax settings?
Follow these steps:
Read through the details of this article.
Then, In Meadow Admin, go to:
Settings > Taxes for organization-wide tax settings, and/or
Settings > Delivery > Zones for Delivery Zone tax settings.
Each delivery zone can have their own taxes that should be edited.
Click Edit next to your California Excise Tax.
Tip: Take a screenshot of your current 19% tax settings before making changes, so you have a record.
Delete the existing 19% CA Excise Tax.
Create a new 15% Excise Tax making sure to re-enter and “Add” any exclusions (e.g., Accessories).
Note: It’s not possible to simply edit an existing tax rate—you must delete and recreate.
Save your new settings and confirm the 15% rate is active.
Recommendation: Update your settings during non-operating hours (before opening or after closing) so reporting transitions cleanly.
What’s Changing?
The CA excise tax rate will decrease from 19% back to 15% of retail gross receipts on October 1, 2025.
Resources:
"AB 564 reverses a 25% tax increase on California’s legal cannabis industry and sets the state’s cannabis excise tax rate at 15% until 2028, allowing legal businesses to remain competitive and promoting the industry’s long-term growth."
Excise Tax Timeline in California
Jan 1, 2023 — 26.25% of wholesale → 15% of retail sale price.
Jul 1, 2025 — Excise tax increased to 19%.
Oct 1, 2025 — Excise tax returns to 15%.
More information about the California Excise Tax:
The excise tax will continue to compound any local taxes and apply to any fees on an order (such as delivery or payment fees).
The excise tax continues to be compounded by sales tax.
You may have three tiers of compounding taxes in your jurisdiction, each with a different calculation for gross receipts.
Frequently asked questions:
Q: Will Meadow automatically update my tax settings?
A: No, a full privilege Admin needs to recreate your Excise tax settings to 15% before October 1.
Q: When should I update my taxes?
A: Before opening on October 1, 2025. We recommend updating your tax settings when no orders are being processed (either after closing or before opening) to ensure a smooth transition and accurate reporting.
Q: How do I exclude product categories from being charged excise tax?
A: When creating your new excise tax, scroll to the Excluded Product Categories section. From there, select the category you want to exclude (e.g., Accessories) from the dropdown and click Add. The exclusion won’t be saved unless you complete both steps—selecting the category and clicking Add.
Q: How can I track excise tax before and after the rate change?
A: Tracking depends on when you update your settings:
Delete the 19% tax → that column in Orders and Taxes reports will close.
Create the 15% tax → a new column will open in Orders and Taxes reports.
This gives you a clear before/after record across the change.
Q: Where can I view the updated tax data?
A: Go to Reports > Taxes or Reports > Orders. You’ll see clearly labeled columns for each excise tax rate.
Q: Do I need to do anything else to stay compliant?
A: Yes. Make sure your updated tax settings are active before you begin processing orders on or after October 1, 2025. We recommend making the change during non-operating hours and taking a screenshot of your previous tax settings before deletion.
Notes on Support
If you have questions, here’s who to reach out to:
Meadow Support — for help updating your excise tax settings in Meadow.
Your Tax or Accounting Professional — for questions about tax rates, how taxes compound, or compliance interpretations.