Michigan Enacts 24% Wholesale Marijuana Tax

treasury

Published January 1st, 2026

Detected March 17th, 2026

Summary

Michigan has enacted a new 24% wholesale tax on recreational marijuana, effective January 1, 2026. This tax will be administered by the State Department of Treasury and revenue will fund infrastructure improvements.

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What changed

The State of Michigan, through its Department of Treasury, has enacted Public Act 23 of 2025, which establishes a new 24% wholesale tax on adult-use marijuana. This tax applies to wholesale price of certain sales or transfers of recreational marijuana and is set to take effect on January 1, 2026. The revenue generated from this tax will be deposited into the state's neighborhood road fund for infrastructure improvements.

Businesses involved in the wholesale of recreational marijuana in Michigan must prepare for the implementation of this new tax. Compliance will require accurate tracking and reporting of all taxable sales and transfers occurring on or after January 1, 2026. While no specific penalties are detailed in this announcement, failure to comply with state tax laws typically results in fines and interest. Regulated entities should consult the provided links for definitions, FAQs, and specific guidance from the Michigan Department of Treasury.

What to do next

Review Public Act 23 of 2025 for detailed requirements
Update accounting and sales tracking systems to accommodate the 24% wholesale tax
Ensure all taxable sales and transfers of recreational marijuana are reported and taxed starting January 1, 2026

Source document (simplified)

Wholesale Marijuana Tax

What is the New 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.

Read the Notice to Taxpayers

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.