Michigan Cannabis Taxes: How Much Are You Really Paying?
October 9, 2026 · GREENLINE
Every time you buy cannabis in Michigan, a chunk of that price goes to the state. Here’s exactly how much and where it goes.
Recreational Cannabis Taxes
10% excise tax: applied at the point of sale, on top of the product price
6% sales tax: Michigan’s standard sales tax, also applied
Total tax burden: approximately 16% on every recreational purchase
On a $40 eighth, you’re paying about $6.40 in taxes. On a $200 ounce, that’s $32.
Medical Cannabis Taxes
No excise tax: medical patients are exempt from the 10% excise tax
6% sales tax: still applies
Savings: medical patients save 10% on every purchase compared to recreational buyers
Where the Money Goes
Michigan’s cannabis excise tax revenue is distributed:
35% to the School Aid Fund (K-12 education)
35% to road and infrastructure repair
15% to municipalities with licensed dispensaries
15% to counties with licensed dispensaries
Is a Medical Card Worth It?
A Michigan medical marijuana card costs about $75–150/year (doctor visit + state registration). If you spend more than $750–1,500/year on cannabis, the 10% tax savings pays for the card. Heavy consumers save $200–500+ annually.
Bottom line: Michigan’s 16% recreational tax is moderate compared to other states (Illinois charges 25–35%, Washington 37%). But medical patients should still get their card if they buy regularly.