🌍🚗 What Michigan’s New Cannabis Tax Means for Out-of-State Customers

🌍🚗 What Michigan’s New Cannabis Tax Means for Out-of-State Customers Traveling from Ohio, Illinois, or Indiana to Michigan for legal cannabis? Here’s what you should know about the recently passed wholesale tax — and how it could affect your visit. 📄 What’s the New Tax — In a Nutshell Beginning January 1, 2026, Michigan will add a 24% wholesale tax on adult-use cannabis at the first sale or transfer from a wholesaler (or grower/processor) to a retailer. (Michigan)

NOTE: As of now , there are NO plans to increase prices in 2026. Pure will continue to provide high quality cannabis, at an affordable price.

This is in addition to the existing 10% retail excise tax and the 6% statewide sales tax that shoppers already pay at dispensaries. (Cannabis Business Times)

While wholesalers are technically responsible for remitting the tax, most experts expect that retailers will pass at least part (or all) of the added cost on to consumers — meaning higher shelf prices are almost inevitable. (MJBizDaily)

💵 What This Means for Out-of-State Shoppers If you’re driving up to Michigan from Ohio, Illinois, or Indiana for recreational cannabis — here’s how your experience could change: Higher prices at checkout: What used to be a budget-friendly joint or eighth may now come with 20–40% more added cost (depending on how much of the wholesale tax gets passed on).

Fewer deep “deals” & discounts: With shops paying more up front, many may cut back on bundle deals, budget ounces, or frequent discount promos.

Possibly narrower selection or higher-end focus: To offset increased costs, some retailers might rotate out lower-margin, budget-friendly products — which means fewer cheap flower or low-cost pre-rolls, and more focus on higher-margin items (vapes, high-potency products, etc.).

Value math changes: travel + taxes vs. savings — If you’re coming from another state, what once felt like a good value trip may now need rethinking, depending on what you buy.

🚫 Important Reminder for Border-State Shoppers Even if you buy cannabis legally in Michigan, you cannot take it across state lines back into Ohio, Illinois, Indiana, or any other state. That remains federal law — meaning transporting cannabis across state borders can carry serious legal risks. (FindLaw) If you’re from out of state and planning a visit: Buy and consume only in Michigan — do not attempt to drive home with cannabis, even if your destination is a “legal state.”

Store cannabis properly in your Michigan vehicle (sealed and in trunk) if transporting within Michigan. (Michigan Legislature)

Plan accordingly — treat your dispensary visit like a short getaway: shop legally, consume legally, and don’t risk crossing borders with cannabis.

🧭 What Border-State Visitors Should Keep in Mind If you still want to make the trip despite higher costs, here are some tips to make it worthwhile: Treat dispensary visits as Michigan-only outings — enjoy the day there, maybe combine it with a trip to the lake or local activities.

Budget smart: buy only what you plan to consume while still in Michigan.

Stick with quality-tested products — the legal market still offers tested, regulated goods (vs. black-market alternatives), which means better safety and reliability.

Look out for retailers absorbing some of the tax: some shops may decide to eat part of the tax rather than passing it fully to consumers — worth asking when you visit.

⚠️ What’s At Stake for the Legal Cannabis Market The new wholesale tax may push some customers away — especially border-state visitors — and that could have ripple effects: Some shops may struggle to maintain margins, especially smaller retailers. (Michigan Advance)

Fewer budget-friendly, high-volume sales may lead to reduced variety or fewer new product releases.

There’s growing concern that some consumers might return to unregulated markets if legal prices climb too high — risking safety, compliance, and the legitimacy of the legal industry. (Michigan Advance)

✅ Final Thoughts If you’re coming from Ohio, Illinois, or Indiana, Michigan’s new wholesale cannabis tax changes the cost equation — a border-run might not save you as much as it used to. But if you go in informed, stay within the law, and shop smart, you can still enjoy legal, regulated cannabis while visiting Michigan. Want help creating a customer-friendly FAQ on the new tax (for your website)? I’d be happy to build one for you — could help manage expectations and avoid surprises at checkout.