Is There a Tax-Free Cannabis Day in Michigan? How Those Sales Really Work

Michigan has no tax-free cannabis day, whatever the banner says. A $25 eighth rings up at $29.15 once the state's two taxes hit it.

When a shop prints "tax-free," the shop is covering the state's cut so your total matches the sign. I grow sun-grown organic flower outside Detroit, and I still read the receipt.

Does Michigan Have a Tax-Free Cannabis Day? #

No. As of October 16, 2026, Michigan has no cannabis sales-tax holiday. The Cannabis Regulatory Agency lists no day when the 10 percent comes off.

The Treasury page with "holiday" in the name is Sales, Use and Withholding Tax Due Dates for Holidays and Weekends. It tells a business what to do when a filing deadline lands on a weekend or a listed holiday. It doesn't turn tax off at the counter.

The CRA page on the voter law still says commercial sales of marihuana are subject to a 10 percent tax. It does not name April, November, or any other day as a waiver.

A shop can still put flower on sale, because the price is the shop's call. A tax holiday would take a law telling Treasury to skip the tax, and the state has no such law for cannabis.

What Taxes Hit an Adult-Use Receipt in Michigan? #

On adult-use cannabis, the state adds a 10 percent excise tax, then 6 percent sales tax on the price plus that excise.

MCL 333.27963 is the voter law's tax section. It imposes an excise tax, the extra cannabis tax, "at the rate of 10% of the sales price." The same sentence says the tax is "in addition to all other taxes." The shop owes it on a sale to a customer. You see it because the register adds it.

Treasury Revenue Administrative Bulletin 2023-25 says the sales-tax price includes that excise. Example D in the bulletin is a $100 sale. The excise is $10. The sales-tax price is $110. Sales tax is 6 percent of $110, which is $6.60.

The same steps on a $25 eighth:

Line	$25 eighth	$100 order
Sticker, before tax	$25.00	$100.00
10% excise	$2.50	$10.00
Price plus excise	$27.50	$110.00
6% sales tax	$1.65	$6.60
Tax on the receipt	$4.15	$16.60
What you pay	$29.15	$116.60

The $100 column is Example D, copied into dollars you can check. The $25 column runs the same bulletin math on an eighth.

The CRA's voter-law page splits that 10 percent four ways:

• 15 percent to cities and townships
• 15 percent to counties
• 35 percent to the school aid fund
• 35 percent to roads

That 10 percent is the older of the two cannabis excise taxes, and it is the one you see on the receipt. Whether a city adds its own percent comes up below.

Why Is the Combined Rate 16.6 Percent? #

Sales tax is charged on the excise too, so $1 of sticker becomes $1.166 at the register. That is 16.6 percent of the sticker.

On the $25 eighth from the table, the pennies run like this:

• The excise is $2.50.
• Sales tax on the $25 flower is $1.50.
• Sales tax on that $2.50 excise is 15 cents.
• $1.50 plus 15 cents is $1.65.
• $2.50 plus $1.65 is $4.15.
• $4.15 divided by $25 is 0.166.

A shortcut that multiplies the sticker by 0.16 lands on $4.00 of tax and a $29.00 total. The bulletin's way lands on $4.15 and $29.15. The 15 cents is the whole difference. On a $100 order, the same shortcut misses 60 cents, and Example D's $6.60 already includes it.

Those extra pennies are the sales tax on the excise, so I check my receipt against 16.6 percent.

What Does a Tax-Free Dispensary Sign Actually Do? #

The shop lowers the sales price so your total can land on the old sticker. The state still gets the 10 percent excise and the 6 percent sales tax on that lower price.

Example D says the retailer is liable for both taxes. A sidewalk sign doesn't move that liability. It only changes the sales price the taxes are figured on.

Say the banner promises $25 out the door on adult-use flower. Divide 25 by 1.166, and the sales price has to sit near $21.44.

Line	Tax added on top of $25	Shop covers it, you pay $25
Sales price	$25.00	about $21.44
10% excise	$2.50	about $2.14
6% sales tax	$1.65	about $1.41
You pay	$29.15	$25.00
State still receives	$4.15	about $3.56

You save $4.15 against paying tax on top. The state still receives about $3.56, and that comes out of the shop's side of the $25. A register rounds to the penny, so the total can land at $24.99.

Run the same move on Example D's $100 sale. Divide 100 by 1.166 and the sales price sits near $85.76. The state still receives about $14.24. You pay $100 and save $16.60 against the bulletin's $116.60 total. The shop gave up about $14.24 of price. The rest of your savings is tax nobody owes anymore, because the price dropped.

Rule 420.507(2) of the CRA's marihuana rules says a licensee may not advertise a marihuana product "in a way that is deceptive, false, or misleading." A sign that says the state waived the tax would be false. A sign that says the shop is covering the tax can be true when the receipt matches the right-hand column.

What If the Sale Is Just a Percent Off? #

A percent-off sale lowers the price, and the taxes shrink with it. The taxes still calculate.

Twenty percent off a $25 eighth makes the sales price $20. Then the adult-use stack is:

• Excise, 10 percent of $20: $2.00
• Sales tax, 6 percent of $22: $1.32
• You pay: $23.32

You pay $23.32 against $29.15 at full price. The tax shrank because the price shrank.

Watch a combo deal. Example E in RAB 2023-25 is a $120 ring that bundles marihuana with a tee shirt. The bulletin calls that bundle prohibited unless Treasury has allowed it.

The excise in the example is $12, on the whole $120. Sales tax is 6 percent of $132, which is $7.92. A "free shirt with your eighth" can pull the shirt into the cannabis excise. Ask the counter to ring the flower by itself if you want the excise on the flower only.

The same bulletin says marihuana edibles sit outside the grocery food exemption. A gummy gets the cannabis excise. Divine Toke doesn't sell edibles, but the rule still matters if a shop offers them on a sale day.

Where Does the 24 Percent Wholesale Tax Sit on a Sale Day? #

The 24 percent wholesale tax started January 1, 2026, and Treasury is still administering it. Your receipt does not get a separate 24 percent line.

MCL 205.905 is in the Comprehensive Road Funding Tax Act, Act 23 of 2025. The section says, "In addition to all other taxes, beginning January 1, 2026," an excise tax is levied on the wholesale price. On the first sale from a grower or processor to a retail licensee, the rate is 24 percent, levied on that establishment. The act took effect October 7, 2025. The tax itself starts with 2026 sales.

Treasury's wholesale marijuana tax page gives the same start date. It says the money goes into the neighborhood road fund for infrastructure. That fund is separate from the 15 / 15 / 35 / 35 split on the 10 percent.

Revenue Administrative Bulletin 2026-3 was approved March 17, 2026 and updated March 24, 2026. It says the 24 percent applies "in addition to all other taxes," including the 10 percent retail excise and the 6 percent sales tax. Those two still happen when you buy. The 24 percent happens earlier, on the sale from the wholesaler to the shop.

If the grower passes that cost along, it is already inside the sticker before anyone prints "tax-free." A weekend sign can eat the receipt tax. It can't pull back a wholesale tax that already moved up the chain.

The court fight is real, but as of October 16, 2026, the tax is still on the books.

• On January 14, 2026, Michigan Public reported that the Court of Appeals refused to pull the case out of the Court of Claims. The industry group says the tax breaks the 2018 voter law. The state says the tax is a road law and does not rewrite that voter text.
• On April 3, 2026, Michigan Public reported a second Court of Claims suit. That one says the wholesale tax stacks like an extra sales tax. On top of the 10 percent, the suit says, it runs past the state's constitutional sales-tax cap.
• On April 23, 2026, CPA Practice Advisor reported that the state Supreme Court told the Court of Appeals to look again. The same piece says the Court of Claims, in December 2025, declined to block the January 1 start.

Two repeal bills have been introduced, and neither has had a floor vote. Senate Bill 810 was introduced by Senator Jonathan Lindsey. It was referred to Senate Government Operations on February 26, 2026. The history table shows no later action. House Bill 6224 was introduced by Representative James DeSana. It was referred to House Appropriations on July 29, 2026, and electronically reproduced on August 11, 2026. That history table shows no floor vote either.

For more on the tax itself, read our 24 percent wholesale tax explainer, the August tax watch, and the Q2 wholesale-tax piece.

Does a Medical Card Clear the Tax? #

A true medical sale skips the 10 percent excise. State sales tax still applies. The 24 percent wholesale tax stays off true medical wholesale.

MCL 333.27963(4) says the 10 percent does not apply to marihuana sold under the Michigan Medical Marihuana Act or the medical marihuana facilities law. RAB 2023-25 repeats that exemption for sales to a registered qualifying patient.

Treasury's wholesale FAQ says the 24 percent does not apply to wholesale sales of medical marijuana. The exception is a dual-license shop that moves product from medical inventory into adult-use inventory. That transfer is taxable at 24 percent.

RAB 2026-3 says the 6 percent sales tax hits non-exempt sales of tangible personal property, which is the law's term for physical goods. A medical card lets you buy medical inventory, and sales tax still applies to that sale.

On a $25 medical eighth, with no 10 percent in the price, sales tax is $1.50. You pay $26.50 if the shop adds tax on top. On a $100 medical sale, sales tax is $6. You pay $106.

Ask which inventory they are ringing. Adult-use flower is still an adult-use sale with a medical card in your wallet, and the 10 percent comes back.

Does Detroit Add a Cannabis Tax on the Receipt? #

Detroit doesn't print a city cannabis percent on the receipt. The voter law lets a city charge the business a yearly license fee, capped at $5,000.

MCL 333.27956 lets a municipality limit how many shops it allows. It can set time and place rules. It can charge an annual fee to cover application, administrative, and enforcement costs. The shop pays it, up to $5,000 a year.

A high number on a menu is the shop's own sticker, and the state's ounce average is a different number again. The state taxes get added at the register. The only city tool in the statute is that license fee. If a budtender says Detroit added its own weed percent, ask to see it on the receipt.

When Do Michigan Shops Run Their Big Sales? #

April 20, the Wednesday before Thanksgiving, and the Friday after Thanksgiving are discount days shops choose. No statute turns the cannabis tax off for those dates.

Federal law sets Thanksgiving as the fourth Thursday in November. In 2026 that Thursday is November 26. The Wednesday before it, the day cannabis retail nicknames Green Wednesday, is November 25. Black Friday is November 27.

April 20 already happened this year, on a Monday, and the state passed no tax waiver for it. Each counter sets its own percent off, so I'm not guessing at those. A "tax-free eighth" on April 20 works like any other week. The shop drops the sales price and still sends the state its cut of what is left.

If you are buying after a shift in Detroit, read the banner as a price. If the shop isn't covering the tax, expect that price times 1.166 at the register. Check it before you tap the debit button. A fee on that button is a different charge from this tax, and what the dispensary ATM actually charges breaks it down.

How Do You Read the Receipt Before You Pay? #

Start with the sales price after the discount, look for the 10 percent excise, then check the 6 percent sales tax on price plus excise.

Use this order on an adult-use sale:

1. Read the sales price after the discount. That number is the base. A "tax-free" banner does not replace it.
2. Look for the 10 percent excise. On a true medical ring, that line should be missing. On adult-use, it should be there.
3. Check the sales tax. It should be 6 percent of the price plus the excise. On a $25 adult-use eighth with tax on top, that is $1.65, and the total is $29.15.
4. If your total equals the big number on the sign, the shop ate the receipt tax. The state still got paid out of the lower sales price.
5. Don't hunt for a 24 percent line. RAB 2026-3 puts that tax on the earlier wholesale sale. It can already be inside the sticker.
6. Keep the receipt. Next month's should show the same 10 percent and 6 percent, with only the sticker changed.

The percent is the same on a gram and an eighth, and the dollars follow the price. A 1 gram pre-roll versus an eighth compares those two buys before tax.

FAQ #

Does Michigan have a tax-free cannabis day? #

No. Treasury and the CRA do not run a cannabis sales-tax holiday. The Treasury "holiday" page is a list of filing deadlines. The CRA voter-law page still says commercial sales carry a 10 percent tax. A dispensary sale is the shop's discount.

What is the tax on a $25 adult-use eighth in Michigan? #

You pay $29.15 if the shop adds tax on top of a $25 sticker. The excise is $2.50. Sales tax is $1.65, because RAB 2023-25 taxes the $27.50 price-plus-excise at 6 percent. The receipt tax is $4.15.

What is the tax on a $100 adult-use order? #

Example D in the Treasury bulletin makes it $16.60 of tax and a $116.60 total. Excise is $10. Sales tax is 6 percent of $110, which is $6.60. It is the official $100 example, and the $25 math follows the same steps.

Why do people say the Michigan weed tax is 16 percent? #

The checkout stack is 16.6 percent of the sticker, because sales tax also hits the excise. Ten percent, plus 6 percent of the price after the excise is added, is the 1.166 multiplier. Multiply $25 by 0.16 and you get $4.00. The bulletin's way gives $4.15.

If a dispensary says tax-free, do I still pay tax? #

You can pay a total that matches the sticker, and the shop still owes tax on the lower sales price. To make a $25 adult-use total, the sales price has to sit near $21.44, and the state still receives about $3.56. MCL 333.27963 does not turn off for a banner.

Is a tax-free sign legal in Michigan? #

A true "we are covering the tax" sign can be a real discount. A sign that says the state waived the tax is a false ad. R 420.507(2) bars deceptive, false, or misleading marihuana ads. I did not find a CRA fine, through October 16, 2026, aimed at those two words alone.

Does a Michigan medical card remove cannabis tax? #

It removes the 10 percent excise on a true medical sale, and the 24 percent stays off true medical wholesale. Sales tax remains. On a $25 medical eighth, 6 percent is $1.50, so the tax-on-top total is $26.50. A dual-license move from medical stock onto the adult-use shelf does trip the 24 percent, per Treasury's FAQ.

Does the 24 percent wholesale tax show on my receipt? #

It does not get its own customer line. RAB 2026-3 puts it on the wholesale sale, starting January 1, 2026, under MCL 205.905. You still see 10 percent and 6 percent on adult-use. The 24 percent can already be inside the sticker.

Is the 24 percent still being collected as of October 16, 2026? #

Yes. The statute is still in force, Treasury is still publishing the rules, and the repeal bills have no floor vote on their history tables. SB 810 stopped at a February 26, 2026 committee referral. HB 6224 stopped at the August 11, 2026 reprint. The April 23 report orders another look at the tax. That order left collection in place.

Does Detroit charge a local cannabis tax? #

No city cannabis percent shows up in the voter law's local section. MCL 333.27956 caps a municipal license fee at $5,000 a year, paid by the business. Your total at the counter is the sticker plus the state taxes.

Are 4/20, Green Wednesday, and Black Friday tax holidays in Michigan? #

They are sale days, and they are tax holidays only in the shop's advertising. Green Wednesday 2026 is November 25, the day before Thanksgiving on November 26. Black Friday is November 27. April 20 was a Monday this year. The 10 percent and the 6 percent still calculate on the discounted price.

Can a shop bundle a shirt with flower and skip the excise? #

The Treasury example taxes the whole prohibited bundle. On a $120 shirt-plus-flower ring, RAB 2023-25 Example E puts a $12 excise on the combo and $7.92 of sales tax on $132. Ask for the flower on its own line if you want the excise on the flower only.

What This Means at the Counter #

Michigan has no tax-free cannabis day, so a tax-free sign is a discount the shop funds while the state still gets paid. On adult-use, budget $29.15 for a $25 eighth and $116.60 for a $100 sticker when tax sits on top. If the sign eats the tax, the shop's price drops and the state still gets a smaller check. The 24 percent wholesale tax can already be inside that sticker, and a banner does not pull it back out.

Our regular list is a $20 eighth, a 1 gram joint at $7.50, and a 20-pack of twenty 1 gram joints at $120. Run the state formula on the $20 eighth and you get $2.00 of excise and $1.32 of sales tax, for $23.32. On the $120 pack it is $12.00 plus $7.92, for $139.92. We are not running a tax-free day.

Divine Toke sells its flower by mail. We don't have a storefront, and we don't hang a sidewalk banner. Keep reading, or shop the flower:

• The 24 percent wholesale tax
• The August tax watch
• What the dispensary ATM fee actually is
• A 1 gram pre-roll versus an eighth
• Why the state ounce average and your menu differ
• Shop sun-grown flower

This is general information for shoppers, not tax advice.