Cannabis Tax Rates in Michigan
This state has legalized both recreational and medical cannabis.
Tax Rate Breakdown
Overview
Michigan has one of the more straightforward cannabis tax structures in the country. Recreational cannabis is subject to a 10% excise tax on top of the standard 6% state sales tax, for a total effective rate of 16%. Local governments are not permitted to levy additional cannabis-specific taxes, keeping the rate uniform statewide. Medical cannabis is exempt from the excise tax and only pays the 6% state sales tax. Revenue is split between municipalities, counties, the School Aid Fund, and the Michigan Transportation Fund.
Key Facts
- •10% state excise tax on recreational cannabis
- •6% state sales tax applies to all cannabis purchases
- •No local cannabis taxes permitted — uniform 16% statewide
- •Medical cannabis exempt from excise tax (6% sales tax only)
- •Revenue split: 15% municipalities, 15% counties, 35% School Aid Fund, 35% Transportation Fund
Frequently Asked Questions
What is the total cannabis tax rate in Michigan?+
Where does Michigan cannabis tax revenue go?+
Do medical patients pay less tax in Michigan?+
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See how Michigan's cannabis tax rates compare to neighboring or similar states.
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Disclaimer: The information on this page is provided for educational and informational purposes only and does not constitute tax or legal advice. Cannabis remains illegal under US federal law. Michigan tax rates and regulations are subject to change and may vary by local jurisdiction. Tax rates, revenue figures, and program details described here are based on publicly available information and may not reflect the most current regulations. Always verify current tax rates with official Michigan state tax authorities and consult with a qualified tax professional. Cannabismarketcap does not guarantee the accuracy or completeness of any information presented.