The Michigan Department of Treasury released new guidance, explaining how the new 24% wholesale marijuana tax works and what cannabis businesses need to do as quarterly payments begin this year.
The tax took effect on Jan. 1, 2026, and applies to the first sale or transfer of adult‑use marijuana from a licensed marijuana establishment to a retail licensee, the agency said.
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“We know this is the first year of a new tax, and we want to help businesses adjust smoothly as we implement this policy,” Michigan State Treasurer Rachael Eubanks said. “As a transition‑year measure, Treasury is providing relief from penalties and interest for businesses that make good‑faith quarterly payments. The guidance outlines what businesses need to do, and we encourage everyone to begin reporting and making their quarterly payments starting with the first period ending March 31.”
Revenue from the new tax will go toward road and bridge projects across the state.
Who is responsible for paying the tax?
Under the law, the wholesaler, which is the business making the first sale or transfer to a retailer, is responsible for paying the new tax.
That includes growers, processors, seed‑to‑sale microbusinesses that package their own products for retail and medical provisioning centers that move product to an adult‑use license, according to the release.
A taxable sale happens when the retailer becomes the owner of the cannabis. This usually depends on the terms in the business contract or the way the businesses normally operate.
How is the tax calculated?
If two businesses are not connected, the tax is based on the actual price the retailer pays for the product.
But if the businesses are related, or a company grows and sells its own product, the government uses a standard “average wholesale price list” instead. This list is updated every three months and is posted on the Treasury’s website.
Because these prices can change each quarter, businesses should report and pay their taxes on time, according to the release.
When must the payments be made?
In 2026, businesses are expected to make quarterly payments that reflect their activity.
These payments will be due by the following dates:
- April 20
- July 20
- October 20
A full set for the full year will be due on Jan. 20, 2027, including the full amount owed for the fourth quarter and any other remaining tax owed for the first three.
But, if a business pays at least 75% of what it owes for each quarter and then pays the full amount owed for the year by Jan. 20, 2027, the Treasury will waive any penalties and interest gained during the first three quarters.
According to the release, this is just because this year is a transition year for the new tax, and in 2027, full payments will need to be paid each quarter.
Businesses can click here for more information on the wholesale marijuana tax, and here for the Treasury’s official guidance.