New Michigan Cannabis Tax Discussion

There has been a lot of confusion around the new tax that started in the cannabis industry on January 1, 2026 in Michigan. 

We have not raised our prices yet because we, like a lot of dispensaries throughout the state, stocked up before January 1 to avoid the new tax, a wholesale tax, which means you won’t see an 24% increase directly at the register on the receipt. 

What the new tax does is tax the wholesale vendor 24% on the goods that they sell to the retailer. 

So, it’s the wholesaler who has to pay the state.

Every wholesaler is free to devise their own system of how that 24% gets paid, just like all dispensaries have the option of how to collect the 10% Michigan cannabis excise tax and 6% Michigan sales tax. At Phix, we choose to build the excise and sales tax into our pricing to make life easier for our customers.

It remains to be seen how the wholesalers will implement the tax. Some of them are building it into their pricing, some of them are charging the retailer an extra 24%, some of them are splitting it and there’s every different kind of situation in between. 

The bottom line is that the customer buying product at a dispensary will not see a 24% “Fix the Roads” Michigan tax line item on the receipt, instead will only see the 10% cannabis excise tax and the 6% Michigan sales tax. 

The customer will see prices go up eventually across the entire state, including at Phix, but how much it goes up remains to be seen. 

In the meantime, enjoy the high quality, affordable cannabis at Phix and across the state!