Michigan 24% Wholesale Marijuana Tax Effective January 2026
Summary
The Michigan Department of Treasury announces a new 24% wholesale tax on recreational marijuana sales and transfers effective January 1, 2026. The tax applies to the wholesale price of marijuana sold or transferred in Michigan's adult-use market. Revenue from the tax will be deposited into the neighborhood road fund for infrastructure improvements. Treasury has published formal guidance to help cannabis businesses understand compliance requirements.
What changed
Michigan has enacted a new 24% wholesale marijuana tax on recreational or adult-use marijuana sales and transfers, effective January 1, 2026. The tax is calculated on the wholesale price and applies to all taxable marijuana transactions occurring on or after the effective date. Treasury has published formal guidance to assist cannabis businesses with understanding their obligations.
Cannabis businesses engaged in wholesale marijuana transfers in Michigan should prepare for a new tax obligation that will affect their cost structure and reporting requirements. Businesses should register with Treasury, establish processes for calculating and remitting the tax, and review Treasury's published guidance to ensure timely compliance with the new requirement. The tax revenue is designated for road infrastructure, reflecting the state's approach to funding transportation improvements through cannabis taxation.
What to do next
- Register with Michigan Treasury for wholesale marijuana tax
- Collect and remit the 24% wholesale tax on applicable marijuana transactions
- Monitor Treasury guidance for compliance requirements and payment procedures
Archived snapshot
Apr 11, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Wholesale Marijuana Tax
Wholesale Marijuana Tax
Official Guidance Available Treasury published finalized formal guidance on March 17, 2026 to help cannabis businesses understand how the Wholesale Marijuana Tax works and what they need to do to stay compliant.
Read the Revenue Administrative Bulletin
- ## Make a Payment
- ## Average Wholesale Price List
- ## Sign Up for Notifications
What is the Wholesale Marijuana Tax?
Treasury is tasked with the administration of a 24% wholesale tax on the wholesale price of certain sales or transfers of recreational or "adult-use" marijuana beginning January 1, 2026.
When does the new Wholesale Marijuana Tax take effect?
The new 24% Wholesale Marijuana Tax takes effect on January 1, 2026. Therefore, the tax will apply to all taxable sales and transfers of marijuana occurring on and after that date.
Where does the revenue from the new Wholesale Marijuana Tax go?
The revenue generated by the new 24% Wholesale Marijuana Tax is deposited into the neighborhood road fund for infrastructure improvements.
Frequently Asked Questions (FAQ)
Treasury is changing how it spells marijuana. Using “j” instead of “h” when talking about taxation.
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