📈 How Michigan’s New Cannabis Wholesale Tax Impacts Cannabis Customers

With the new law signed in late 2025, Michigan is rolling out a 24% wholesale tax on adult-use cannabis — and while the tax is technically on the wholesale side, the impact will almost certainly be felt by everyday consumers. (Michigan) If you buy cannabis at a retail dispensary in Michigan, here’s what you need to know — and what might change in 2026 and beyond. 🧾 What’s Changing: A New Wholesale Tax on Cannabis As of January 1, 2026, any first sale or transfer of recreational cannabis from a licensed wholesaler, grower, or processor to a retailer will be subject to a 24% wholesale excise tax. (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% state sales tax that you already pay at the point of purchase. (Michigan)

While the law taxes wholesalers, Michigan regulators expect that most retailers will pass on the increased cost to consumers — because retailers pay the wholesale price + tax when they buy from suppliers. (Cannabis Business Times)

💸 What That Means for You — Higher Prices Are Almost Certain Because the wholesale tax increases the cost for shops before they even put products on their shelves, many predictable results will affect you: Higher shelf prices. Expect many flower, vape, edible, and concentrate prices to rise — across the board. Cannabis that used to cost $100 may now cost 20–40% more (depending on how much of the tax gets passed along). (Cannabis Law Blog)

Smaller discounts, fewer deals. Since overhead costs go up, stores may run fewer specials or discount bundles to maintain profitability.

Possible shrinking of selection. Higher wholesale costs may push marginal or lower-cost products out of circulation; shops may focus on high-margin items.

Risk to smaller/local shops. Smaller dispensaries or mom-and-pop operations might struggle more than large shops — which could reduce local variety and competition, ultimately reducing options for consumers. (Michigan Advance)

🔄 Other Potential Side Effects: Market Shifts & Consumer Choices Beyond just higher prices, the new tax may trigger broader changes — especially for frequent or budget-conscious consumers: More sales to medical-cardholders or black-market sources. Because the tax applies only to adult-use cannabis, medical cannabis (when legally accessed) may become more appealing price-wise. (PrestoDoctor)

Fewer impulse buys & smaller basket sizes. With higher prices, people might cut back — buying smaller amounts or less frequently.

Possible increase in unlicensed/grey-market purchases. If legal cannabis prices spike, some buyers may revert to cheaper illicit sources — reducing safety, testing standards, and traceability for consumers. (Dickinson Wright)

Greater value placed on deals, sales, and loyalty programs. Smart shoppers may look harder for discounts, bundle deals, or loyalty-rewarded purchases to offset the price hikes.

🤔 What Consumers Should Do to Adapt — Smart Shopping Tips If you still want to enjoy legal cannabis without feeling squeezed by the tax shift, here are some strategies: Stock up before the tax hits (if possible) — though you may already be seeing price increases ahead of Jan 1, 2026.

Watch for sales, bundle deals & discounts — try to take advantage of cheapest prices per gram or pack.

Compare shops — different retailers will pass on tax differently; some might absorb a portion, some will raise prices across the board.

Consider product flexibility — maybe edibles or vapes become more cost-effective relative to flower, depending on the markup.

Support medical-cannabis routes if applicable — if you qualify and medical options remain less taxed, that may offer long-term savings.

Stay legal and cautious — while price increases may frustrate shoppers, illegally sourced products carry risks with safety, quality, and legal exposure.

⚠️ Why the Change Matters — But It’s Still Worth Supporting the Legal Market The state claims the wholesale tax will raise hundreds of millions for road repairs and infrastructure upgrades. (Michigan) But that revenue comes at a steep cost to consumers and the industry — higher prices, shrinking competition, and possible instability for smaller businesses. (Michigan Advance) Still, the regulated legal market ensures testing, safe production, and compliance — preserving consumer safety and industry transparency. That’s a major advantage over unregulated alternatives. ✅ Final Thoughts Yes — Michigan’s new 24% wholesale cannabis tax will likely lead to price increases, fewer deals, and potential changes in what products remain available for adult-use buyers. But with smart shopping, loyalty to reputable businesses, and cautious buying habits, many consumers can still find good value — while supporting a legal market that offers safety, quality, and community benefit.