Driving To Michigan To Get Weed Is About To Get Very Expensive

Minnesota has had a long, ridiculously overcomplicated marijuana legalization process. It's taken years to finally get some sort of retail established and up and running. That's meant for many people who risk breaking the law to get safe, accessible cannabis products from dispensaries in the Upper Peninsula of Michigan.

Michigan - Better Selection + Cheaper Prices

The boom came to border town Ironwood, Michigan. Millions of dollars of cannabis products have been purchased in the UP by people from out of state. Just take a look at the license plates in any of the dispensaries' parking lots. At least half are Minnesota and Wisconsin plates. Competition has led to lower prices for the customer, and the variety of products is endless. I did a price comparison of the limited number of dispensaries in Minnesota compared to those in Michigan. Minnesota is about 4X as expensive so far.

Related: Minnesota Weed Prices Compared To Michigan

If you don't live in Michigan, you may not know about a new excise tax that's coming. It was signed into law last week and will slap an additional 24% excise tax on the wholesale cost between a marijuana business and retailer.

The 24% tax is on wholesale marijuana and is between the retailer and the state. However, retailers will have to increase the cost of their products to cover the increase. This is on top of the current 10% excise tax and 6% sales tax. Add it all together, that's a 40% tax on marijuana.

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Both the Michigan Democrats and Republicans passed the bill. The extra money is for road and highway repairs. It's been controversial, with a complaint being filed by the Michigan Cannabis Industry Association.

24% Tax Increase Starts January 1, 2026

The new law and excise tax take effect on January 1, 2026. The first sale or transfer between a marijuana business and a retailer is subject to a 24% tax.