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Michigan Rolls Out New Cannabis Tax as Wholesale Levy Takes Effect

By: Charlotte Burke • January 2, 2026 • Lansing, MI
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(LANSING) - A new wholesale tax on cannabis is now in effect in Michigan.

The tax sets a 24 percent rate on cannabis at the wholesale level and was included in the state's fiscal year 2026 budget. The final rate is lower than a 32 percent wholesale tax proposed earlier by Senate Democrats.

The Michigan Department of Treasury projects the wholesale-to-retail markup will average about 50 percent, based on current wholesale market reports.