Why Michigan’s New Marijuana Tax Is Sparking Outrage
When you stay in Michigan and revel in hashish, you’ve in all probability heard concerning the new Michigan marijuana tax making headlines. Michigan’s new 24% wholesale hashish tax—imposed on growers and processors however handed down by way of retail costs—could trigger the price of leisure marijuana to soar leaving an enormous value influence on customers. Getting a medical marijuana card could also be a method to save cash on Michigan’s new taxes. With this new 24% wholesale marijuana tax, a lawsuit from the Hashish Trade Affiliation has sparked.
Customers could now be paying practically 24–26% extra at dispensaries, whereas medical sufferers stay exempt from these new taxes.
So, what does this imply for you? On this article, we’ll break down the brand new Michigan hashish tax price, the way it impacts dispensaries and prospects, and—most significantly—how getting your medical marijuana card can prevent lots of yearly.
What Is the Michigan Marijuana Tax?
In October 2025, Michigan lawmakers handed a 24% wholesale marijuana tax, formally referred to as the Michigan Hashish Tax Act (HB 5876). The legislation provides a wholesale excise tax on all hashish merchandise bought by growers and processors to retailers.
Even companies that maintain each medical and leisure licenses aren’t exempt. Based on the Michigan Division of Treasury, any switch of hashish from a medical provisioning heart to its adult-use retail operation counts as a taxable wholesale transaction — even when completed every day or concurrently with a sale. These transfers should even be logged within the METRC monitoring system, guaranteeing each transfer is taxed on the 24% wholesale price.
Notice: Whereas the brand new 24% hashish tax is utilized on the wholesale stage to growers and processors, most dispensaries cross this value on to customers by way of larger retail costs. Which means leisure consumers in the end pay the distinction—whereas medical marijuana sufferers stay exempt from these markups. This can probably influence customers when the wholesale tax bills are handed down from retailers within the type of value will increase on merchandise.
Key Tax Parts:
| Tax Kind | Fee | Applies To |
|---|---|---|
| Wholesale Hashish Tax | 24% | Producers & Processors |
| Leisure Excise Tax | 10% | Retail Gross sales |
| Gross sales Tax | 6% | Retail Gross sales |
| Whole Leisure Tax Burden | ≈ 40% | Last Shopper |
Medical marijuana sufferers, nevertheless, solely pay the 6% gross sales tax—no excise or wholesale tax.
That’s the place your medical marijuana card turns into your ticket to saving cash.
Why Did Michigan Add a 24% Hashish Tax?
Based on Michigan lawmakers, the objective is to make use of marijuana tax income to fund state infrastructure, particularly fixing roads. You will have heard it branded because the “Pot for Potholes” initiative.
The place the Cash Goes:
- 70% → Michigan Street Enchancment Fund
- 20% → State Hashish Regulatory Oversight
- 10% → Native Governments
Nevertheless, this transfer sparked backlash from hashish advocates and dispensary homeowners who argue it may cripple small companies and drive up costs for customers.
Michigan Marijuana Tax Lawsuit: Trade Pushback
Nearly instantly after the tax handed, the Michigan Hashish Trade Affiliation filed a lawsuit difficult its constitutionality. The Michigan Hashish Trade Affiliation filed a lawsuit with claims that the Michigan marijuana tax is unconstitutional as a result of it altered a voter-approved legislation and not using a three-fourths legislative supermajority.
Their argument? The 24% hashish tax unfairly targets licensed operators whereas undermining Michigan’s authorized hashish market in favor of the black market and out-of-state competitors.
Dispensary homeowners have warned that they could be compelled to elevate costs or reduce employees, with many calling the coverage “unsustainable.”
“This new tax may devastate Michigan’s hashish business,” mentioned one dispensary proprietor in a WZZM13 report. “Clients are already feeling the pinch.”
How A lot Extra Are You Paying on the Register
Let’s break it down in easy phrases.
When you purchase a $200 ounce of flower, right here’s the distinction between leisure vs. medical:
| Kind | Base Worth | Taxes | Last Value |
|---|---|---|---|
| Leisure | $200 | $56 (~24% value enhance from wholesale tax pass-through + 10% excise + 6% gross sales) | $256 |
| Medical | $200 | $12 (gross sales tax solely) | $212 |
That’s a $44 financial savings per ounce, or about 17%.
Michigan Marijuana Worth Impression Calculator
Estimate how Michigan’s new hashish tax impacts retail costs—and the way a lot you could possibly save with a medical card.
Instance Financial savings:
| Product | Base Worth | Whole Leisure | Whole Medical | Financial savings | % Saved |
|---|---|---|---|---|---|
| ⅛ oz Flower | $35 | $44.80 | $37.10 | $7.70 | 17.2% |
| Vape Cart (1g) | $40 | $51.20 | $42.40 | $8.80 | 17.2% |
| 1 oz Flower | $200 | $256.00 | $212.00 | $44.00 | 17.2% |
Common Michigan hashish shopper spending $150/month saves practically $400 per yr by switching to medical.
Michigan Dispensary Reactions: “It’s Hurting the Trade”
Dispensary homeowners are reporting that prospects are shopping for much less, and a few are contemplating reducing hours or downsizing.
- “We already pay excessive compliance charges,” one store proprietor instructed MLive.
- “This new tax may push folks again to unlicensed sellers.”
In the meantime, medical dispensaries are seeing an uptick in affected person visits, as folks notice how a lot cash they will save.
Michigan Hashish Tax Income: Who Actually Advantages?
Michigan expects to gather over $420 million per yr in hashish tax income. Whereas that will sound promising for infrastructure, critics level out that these funds hardly ever make it again to native communities the place the cash is generated.
For instance:
- Solely a fraction goes to native street upkeep
- Most is absorbed into state-level funds and administrative prices
- Sufferers and small dispensaries bear the brunt of the coverage
How one can Keep away from the Michigan Marijuana Tax: Get a Medical Card
The best method to keep away from paying the additional 24% wholesale hashish tax and the 10% leisure excise tax is to get your Michigan medical marijuana card. Getting a medical marijuana card in Michigan ensures you get monetary savings on taxes.
Advantages of a Michigan MMJ Card:
Save as much as 17–25% on each buy
Entry larger THC limits and unique medical strains
Skip leisure shortages and limits
Get tax-free hashish from licensed medical dispensaries
You may get your card on-line with PrestoDoctor in simply minutes.
Get your medical marijuana card in Michigan right now.
Conclusion: Don’t Pay the Worth of the New Tax
Michigan’s marijuana tax overhaul is reshaping and impacting the state’s hashish market —and never in favor of customers. Between the 24% wholesale hashish tax, 10% excise tax, and 6% gross sales tax, leisure customers could also be dropping lots of of {dollars} yearly.
The Michigan Division of Treasury has printed steerage on the brand new wholesale tax, stating it is going to transfer ahead with implementation on January 1, 2026, except the marijuana tax lawsuit succeeds in acquiring an injunction.
However medical marijuana sufferers?
They’re avoiding practically all of it.
If you wish to hold extra money in your pocket whereas nonetheless getting high quality hashish legally, getting your Michigan medical marijuana card is the neatest transfer you can also make.
Get licensed right now with PrestoDoctor and see how a lot it can save you.
