Michigan’s adult-use cannabis market has been one of the most affordable and consumer-friendly in the country. Low taxes, open licensing, and a diverse mix of operators have made it a model for other states. But a proposal to raise Michigan’s cannabis excise tax to 24% threatens to undo much of that progress, and Couch Lock’d stands firmly against it.
What’s on the Table
The plan would increase Michigan’s current 10% excise tax on recreational cannabis to 24%, plus the 6% state sales tax. This would place Michigan among the highest-taxed cannabis markets in the U.S., surpassing even Illinois, a state already known for some of the steepest cannabis taxes in the nation.
Illinois’ system currently imposes an excise tax ranging from 10–25% depending on THC content, plus state and local taxes. In Chicago and its suburbs, out-the-door tax burdens can easily exceed 40%. Michigan’s lower tax rate has been a major draw for Illinois residents crossing the border to shop. That competitive edge would shrink dramatically under the new plan.
Why It Matters for Consumers & Small Businesses
A 24% excise tax would:
- Drive up prices at the register for everyday consumers.
- Make it harder for small businesses and craft operators to compete with larger, better-capitalized companies.
- Cut into affordability for medical patients and budget-conscious adult-use customers.
- Dampen the growth of Michigan’s unique cannabis culture built on independent operators and accessible pricing.
Still Cheaper Than Illinois, For Now
Even with a 24% excise tax, Michigan’s wholesale and retail prices remain far below Illinois. Open licensing has kept production costs down.
A quick comparison:
- Current Michigan price: A $40 eighth rings up at about $43–45 after taxes.
- With 24% tax: That same eighth could hit $52–54.
- Illinois average: $60–70+ after taxes for a comparable eighth.
So yes, Michigan would still be cheaper than Illinois, but the dramatic savings that have defined the market would shrink quickly.
Our Position
We support fair cannabis taxation that funds public programs and equity initiatives, but it must be balanced and sustainable.
A 24% excise tax:
- Punishes consumers, especially medical patients and working-class adults.
- Tilts the playing field toward large corporate operators.
- Risks weakening the independent businesses that have made Michigan’s cannabis market so vibrant.
Cannabis should remain accessible, affordable, and community-driven, not priced out of reach through excessive taxation.
Take Action
This proposal is still under consideration. If you’re a Michigan resident, consumer, or small business owner, let your state representatives know that a 24% cannabis tax is not the answer. Protect affordability, local businesses, and the progress Michigan’s market has made.
Contact your state Representative HERE
Stay in the loop with all things Illinois Cannabis by joining the Couch Lock’d Newsletter here!
Follow our NEW Instagram here!
Become a Couch Lock’d Member.
Want to meet more people in the community and see what everyone’s smoking on? Join our Telegram channel here.
Find our latest reviews here.
Hosting an event & need a consumption bar? Hit us up here.
Save money with our affiliate links here.
Get your Illinois Medical Card for $75 now with our link here or code “CouchLockd”!
COUCH LOCK’D 