Starting January 1, 2026, Michigan will introduce a 24% wholesale tax on adult-use cannabis, a major change for a market long known for affordability and strong competition. This new tax is stacked on top of the existing 10% adult-use excise tax and 6% state sales tax, bringing Michigan’s total state tax burden to nearly 40%.
At face value, that number sounds alarming. But even with this increase, Michigan cannabis products are still positioned to remain significantly cheaper than Illinois, both at the wholesale and retail level.
Breaking Down the Math: What the New Tax Looks Like
To understand the real-world impact, here’s a wholesale example shared with Couch Lock’d by a Michigan brand.
Product: 2g Live Resin Disposable
Base Wholesale Price: $8.00
New Michigan Wholesale Tax (24%):
$8.00 × 0.24 = $1.92
Wholesale Price After New Tax:
$8.00 + $1.92 = $9.92
Even after the new tax, a 2g live resin disposable lands at just under $10 wholesale.
Comparing Michigan to Illinois Wholesale Pricing
In Illinois, a 1g live resin disposable typically wholesales for $25–$40, depending on the producer and brand.
That means even after Michigan’s new wholesale tax:
- Michigan: $9.92 wholesale for 2 grams
- Illinois: $25–$40 wholesale for 1 gram
Despite higher overall tax percentages, Michigan’s products remain dramatically cheaper due to competition, scale, and a more open licensing structure.
Higher Taxes Don’t Automatically Mean Higher Prices
Michigan’s market still benefits from:
- A large number of licensed growers and processors
- Strong competition across price tiers Influence from caregiver-era pricing standards
- Lower barriers to market entry compared to Illinois
Illinois continues to face high prices due to limited licenses, market consolidation, and restricted competition, not simply taxation(but definitely a big player).
This Isn’t Praise, It’s a Warning
Couch Lock’d is not praising this tax.
A 24% wholesale tax directly impacts small, independent brands, the same mom-and-pop growers and processors who built Michigan’s cannabis market.
We’ve already seen what happens when tax hikes go too far:
- California lost thousands of cannabis licenses
- Small operators were priced out
- Consumers were pushed back toward the illicit market
Michigan now faces a similar risk if small operators aren’t protected.
Supporting Small Brands Matters More Than Ever
Over the next few years, it’s critical to support:
- Independent growers
- Small processors
- Non-MSO cannabis brands
Even with increased taxes, Michigan cannabis remains more affordable than Illinois, but only if the market stays competitive.
Once small brands disappear, prices rise, access shrinks, and consumers lose.
Couch Lock’d will continue tracking how this tax impacts pricing, access, and brand survival across Michigan’s legal cannabis market.
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 