Michigan Cannabis Tax Rate

10–20% Total Effective Tax

Administering Agency: Michigan Department of Treasury · Updated for 2026

16% – 16% Combined effective cannabis tax (excise + state sales + local)

Tax Breakdown

Tax	Rate	Notes
State Cannabis Excise Tax	10%	Applied to retail gross receipts
Wholesale / Cultivation Excise	24%	Imposed upstream; typically embedded in retail price
State Sales Tax	6%	Applies to medical and adult-use sales
Typical Local Sales Tax	0%	Average — actual rate varies by city/county
Local Cannabis Business Tax	Up to 0%	City-level cannabis-specific tax where allowed

Official source: Michigan Department of Treasury ↗ · rates compiled 2026-08-11 · verify current rates at the source before filing.

Featured product · Cannabis PromotionsAd

Custom Glass Jar 2 oz

As low as $0.99 · Ships in ~5 business days

Direct-print 2 oz glass flower jars.

Get a free quote →

How Medical Cannabis Is Taxed

Medical cannabis is not subject to the 10% excise; the 6% state sales tax still applies. On a $100 pre-tax purchase that's roughly $10.00 less than an adult-use sale (before any local taxes, which vary by ordinance).

Michigan Cannabis Tax Notes

10% cannabis excise tax on retail adult-use + 6% state sales tax at the register. A new 24% wholesale marijuana tax (Comprehensive Road Funding Tax Act, signed October 2025) applies to adult-use product transferred to retailers starting January 1, 2026 — paid upstream and built into shelf prices. Michigan does not allow local jurisdictions to add a cannabis-specific tax. Medical cannabis is not subject to the 10% excise.

City Cannabis Tax Rates in Michigan

Cities in Michigan can layer their own cannabis business tax on top of state taxes. Here are the reported rates for major cities — use the tax calculator to model a specific purchase:

City	City Cannabis Tax	Total Effective Rate
Detroit	0%	16%
Grand Rapids	0%	16%
Lansing	0%	16%
Ann Arbor	0%	16%
Flint	0%	16%

Calculate a Michigan Purchase → Compare with Another State → Michigan Regulations →

Planning compliant packaging for Michigan?

Leave your email and our team will send over a free cost sheet for exit bags, labels, and custom accessories for Michigan — no obligation.

Frequently Asked Questions

What is the cannabis tax rate in Michigan?

The combined effective cannabis tax in Michigan ranges from 16% to 16% depending on the city. That includes a 10% state cannabis excise tax, 6% state sales tax, typical local sales tax, and any city cannabis business tax.

Does Michigan exempt medical cannabis from tax?

Medical cannabis is not subject to the 10% excise; the 6% state sales tax still applies. That works out to roughly $10.00 less per $100 pre-tax than an adult-use purchase, before any local taxes.

How much is the state cannabis excise tax in Michigan?

Michigan imposes a 10% state cannabis excise tax on retail purchases. This is collected in addition to state sales tax and any local cannabis business taxes.

Does Michigan have a wholesale or cultivation cannabis tax?

Yes. Michigan imposes a 24% wholesale or cultivation excise tax. This is paid by cultivators or distributors upstream and is typically priced into the retail cost.

Which agency administers cannabis tax in Michigan?

Cannabis tax in Michigan is administered by the Michigan Department of Treasury. Licensed retailers file returns and remit taxes on a regular schedule.

For informational purposes only. Not legal, tax, or financial advice. Michigan cannabis tax rates change — always verify with the Michigan Department of Treasury and consult a licensed tax professional. Read full disclaimer