Michigan: Tobacco Excise Taxes
Michigan Cigarette and Tobacco Excise Taxes
| Total Michigan Cigarette Taxes | Average Cost Per Pack | Ranking (Highest to Lowest) |
|---|---|---|
| $2.00 / pack | $6.44 / pack | 19th / 51 |
In addition to (or instead of) traditional sales taxes, cigarettes and other tobacco products are subject to excise taxes on both the Michigan and Federal levels. Excise taxes on tobacco are implemented by every state, as are excises on alcohol and motor fuels like gasoline.
Current Michigan Tobacco Excise Tax Rates
The primary excise taxes on tobacco in Michigan are on cigarettes, though many states also have taxes on other tobacco products like cigars, snuff, or e-cigarettes. The tax on cigarettes is $2 per pack of 20 cigarettes, there is a tax of 50 cents per cigar or 32% of wholesale price on cigars (depending on the wholesale cost) and smoking tobacco other tobacco is taxed at 32% of their wholesale price.
Michigan Cigarette Tax - $2.00 / pack
In Michigan, cigarettes are subject to a state excise tax of $2.00 per pack of 20. Cigarettes are also subject to Michigan sales tax of approximately $0.36 per pack, which adds up to a total tax per pack of $2.36. Michigan's cigarette excise tax rate has not been changed in over a decade.
The average cost of a pack of cigarettes in Michigan is $6.44, which is the 19th highest in the United States.
Michigan Other Tobacco Products Tax - 32% / Wholesale Price
In Michigan, other tobacco products are subject to a state excise tax of 32% / wholesale price as well as federal excise taxes (listed below).
Michigan Medical Marijuana Tax - 6.00%
Medical marijuana is legal in Michigan, and is subject to state taxes. There are no federal excise taxes collected on marijuana, since it is still seen as illegal under Federal laws.
Currently, medical marijuana is subject to a Michigan cannabis sales tax of 6.00%.
There is no state excise tax on medical marijuana paid by the consumer.
Michigan Recreational Marijuana Tax - 16.00%
Recreational marijuana is legal in Michigan, and is subject to state taxes. There are no federal excise taxes collected on marijuana, since it is still seen as illegal under Federal laws.
Currently, recreational marijuana is subject to a Michigan cannabis sales tax of 6.00%.
Recreational marijuana is subject to a state excise tax of 10%.
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.
Payment of Michigan Tobacco Excise Taxes
Payments of tobacco excise taxes are made by vendors, not by consumers, though the taxes will be passed on in the tobacco's retail price. Sales reports and payments of cigarettes and tobacco products are due on the 20th of each month.
Federal Tobacco Excise Taxes
The price of all tobacco products sold in Michigan also includes Federal Tobacco excise taxes, which are collected from the manufacturer by the Tobacco and Tobacco Tax and Trade Bureau and generally passed on to the consumer in the product's price. Federal excise tax rates on tobacco products are as follows:
Cigars and Cigarettes
| Small Cigarettes | $50.33 per 1,000 cigarettes, or $1.01 per pack of 20 |
|---|---|
| Large Cigarettes | $105.69 per 1,000 cigarettes, or $2.11 per pack of 20 |
| Small Cigars | $50.33 per 1,000 cigars, or $1.01 per pack of 20 |
| Large Cigars | 52.75% of sales price but not to exceed $402.60 per 1,000 cigars, or $0.4026 maximum each |
Other Tobacco Products
| Pipe Tobacco | $2.8311 per pound, or $0.1769 per one-ounce tin |
|---|---|
| Chewing Tobacco | $0.5033 per pound, or $0.0315 per one-ounce tin |
| Snuff | $1.51 per pound, or $0.0944 per one-ounce tin |
| Roll-your-own Tobacco | $24.78 per pound, or $1.5488 per one-ounce tin |
There are also federal excise taxes on cigarette rolling paper and cigarette tubes.
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