The retail tax stack
Adult-use cannabis in Michigan carries a 10% excise tax (cannabis-specific) plus the 6% state sales tax — a combined 16% effective at the register. A $40 eighth costs you $46.40 out the door. Medical patients pay only the 6% sales tax (no excise), saving roughly 10% on every transaction.
The 2026 wholesale tax
Effective 2026, Michigan added a 24% wholesale tax at the cultivator-to-retailer level. This is paid by producers and processors, not consumers directly — but it flows into shelf prices. Net consumer-facing price increases have averaged 8-12% on most product categories since the wholesale tax took effect.
Where the tax money goes
Michigan's adult-use cannabis tax revenue is distributed to: K-12 schools, road and bridge repair, local governments hosting cannabis businesses, and the state's general fund. Detroit and Port Huron both host cannabis retailers and receive a share of the local-government distribution.
How to read your receipt
Michigan dispensary receipts itemize: subtotal (shelf prices), 10% excise tax (adult-use only), 6% sales tax, and any applicable discounts. First-time customers get 25% off the subtotal before tax — meaningful savings on a larger order. Loyalty discounts stack on the same subtotal line.
- MCL 333.27963 — Tax on marihuana sales (excise rate) — Michigan Legislature
- Michigan Department of Treasury — Taxes overview — Michigan Department of Treasury
- Michigan Cannabis Regulatory Agency — Adult-Use Marihuana Excise Tax Distribution — Michigan Cannabis Regulatory Agency