Detroit, Michigan Cannabis Tax Rate
16% totalAdministering agencies: Michigan Department of Treasury · Updated for 2026
A legal cannabis purchase in Detroit is taxed at a combined effective rate of about 16% — all of it from Michigan's state-level taxes, since Detroit does not add a local cannabis tax. Every major Michigan city tracked here carries the same combined rate, because Michigan does not let cities add their own cannabis tax on top of the state rate. On a typical $100.00 dispensary purchase that works out to roughly $16.00 in tax, or about $116.00 out the door.
Detroit is Michigan’s largest city. Michigan does not allow local cannabis taxes, so Detroit shoppers pay the 10% state excise plus the 6% state sales tax at the register (a 24% wholesale tax added in January 2026 is built into shelf prices upstream).
How Much Is Cannabis Tax in Detroit?
Use these worked examples to see what Detroit's 16% combined cannabis tax adds to a dispensary purchase. Figures apply the Michigan state excise, 6% state sales tax to the pre-tax price.
| Pre-tax price | Total tax | Detroit city tax | You pay |
|---|---|---|---|
| $50.00 | $8.00 | $0.00 | $58.00 |
| $100.00 | $16.00 | $0.00 | $116.00 |
| $200.00 | $32.00 | $0.00 | $232.00 |
Estimates treat all taxes as applied to the retail price; actual receipts vary by product, potency tax (where applicable), and exact local sales rate. Model a specific basket with the Detroit tax calculator.
Detroit Cannabis Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| Michigan Cannabis Excise | 10% | State-imposed retail excise |
| Wholesale / Cultivation Excise | 24% | Imposed upstream; embedded in retail price |
| Michigan State Sales Tax | 6% | Applies to medical and adult-use sales |
| Typical Local Sales Tax | 0% | County / district average |
| Detroit Cannabis Business Tax | 0% | No city cannabis tax levied |
| Combined Effective Rate | 16% | What you actually pay at retail |
Official source: Michigan Department of Treasury ↗ · rates compiled 2026-08-11 · city rates set by local ordinance.
How Medical Cannabis Is Taxed in Detroit
Medical cannabis is not subject to the 10% excise; the 6% state sales tax still applies. In practice that trims roughly $10.00 off every $100.00 spent versus an adult-use purchase in Detroit.
Why Is Cannabis Taxed This Much in Detroit?
Cannabis in Detroit carries layers of tax that ordinary retail goods never see. Michigan adds its 10% cannabis excise, a 24% wholesale/cultivation excise that is baked into shelf prices, on top of ordinary sales tax. Because Detroit does not add a local cannabis tax, shoppers here pay only the Michigan state-level taxes — which keeps Detroit on the lower-cost end of the Michigan market.
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.
Detroit vs Other Michigan Cities
Michigan keeps local cannabis taxes uniform, so the combined rate in Detroit matches the other major cities below — the main cost difference between them comes down to base dispensary pricing, not tax.
| City | City Cannabis Tax | Combined Effective Rate |
|---|---|---|
| Detroit (this page) | 0% | 16% |
| Grand Rapids | 0% | 16% |
| Lansing | 0% | 16% |
| Ann Arbor | 0% | 16% |
| Flint | 0% | 16% |
See the full Michigan cannabis tax guide →
Frequently Asked Questions
What is the cannabis tax rate in Detroit, Michigan?
How much tax will I pay on a $100 cannabis purchase in Detroit?
How much is the cannabis business tax in Detroit?
Are medical cannabis patients exempt from Detroit's tax?
Where can I buy cannabis in Detroit?
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