Michigan: Marijuana Tax Handbook

Michigan Marijuana Tax Rate

2023 Michigan Marijuana Tax Handbook

Michigan patients are required to pay a 6.00% sales tax on every purchase of medical marijuana. There is no additional excise tax on medical marijuana in Michigan.

Michigan consumers are required to pay a 6.00% sales tax on every purchase of marijuana for personal use. There is also an additional excise tax of 10% on every purchase of marijuana for personal use.

About Michigan Marijuana Tax

Medical marijuana is not exempt from sales tax as it is not a drug that is dispensed pursuant to a prescription nor is it a food or food ingredient.

The excise tax applies to the sales price for recreational marijuana sold or otherwise transferred by a marijuana retailer or marijuana microbusiness to anyone other than a marijuana grower, processor, secure transporter, or any other type of marijuana related business licensed by the marijuana regulatory agency.

What is the most recent revenue statistic for Michigan?

The 10% excise tax brought in revenues of $31 million in 2020 and $111 million in 2021.

According to the Michigan Treasury:

• 15% to municipalities in which a marijuana retail store or micro business is located
• 15% to counties in which a marijuana retail store or micro business is located
• 35% to the School Aid Fund to be used for K-12 education
• 35% to the Michigan Transportation Fund for use in the repair and maintenance of roads and bridges

Is the Michigan Marijuana Tax Weight-Based or Percentage-of-price-Based?

Michigan's marijuana program uses a Percentage-of-price tax system. This means that the tax charged is calculated using the retail price of the Marijuana at the time of purchase.

Does Michigan have a Controlled Substances Tax?

Michigan does not have a Controlled Substances tax involving Marijuana.

How do Michigan's marijuana taxes compare to the states around it?

Note: It is illegal to transport marijuana accross state lines.

For more information about Michigan Marijuana Taxes, visit the Michigan Marijuana Tax page.

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