Jun 2022
3 min

Michigan Cannabis Sales Tax



Tax on retail sales of cannabis in Michigan run at the rates of:

  • 10% Retail Excise Tax
  • 6% State Sales Tax (effective February 6, 2020)

Voters recently approved Ballot Proposal 1 in the 2018 election authorizing the cultivation, distribution and retail sales of recreational Marihuana. State policymakers now need to approve legislation to implement the proposal. Details on taxes and regulation will be spelled out in future legislation. Legal retail sales began on December 6, 2019.

Why this is important info

Knowing the tax rate allows dispensary owners to plan financially. The tax rate can impact what the best pricing is for products and can also impact financial projections.

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Regulatory Citations for This Article

Michigan Regulation and Taxation of Marihuana Act

333.27963 Imposition of excise tax.

Sec. 13. 1. In addition to all other taxes, an excise tax is imposed on each marihuana retailer and on each marihuana microbusiness at the rate of 10% of the sales price for marihuana sold or otherwise transferred to anyone other than a marihuana establishment.

2. Except as otherwise provided by a rule promulgated by the department of treasury, a product subject to the tax imposed by this section may not be bundled in a single transaction with a product or service that is not subject to the tax imposed by this section.

3. The department of treasury shall administer the taxes imposed under this act and may promulgate rules pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to MCL 24.328, that prescribe a method and manner for payment of the tax to ensure proper tax collection under this act.