Lansing, MI – Michigan collected an estimated $72.48 million in marijuana tax revenue in January 2026, even though cannabis sales declined compared to a year earlier. That figure represents roughly $33 million more than January 2025, when the state collected about $39.5 million under the prior tax structure.
The surge in revenue came during the first full month of Michigan’s new 24% wholesale marijuana tax, which took effect January 1.
According to official monthly sales data from the Michigan Cannabis Regulatory Agency, adult-use marijuana sales totaled $226,432,552.02 in January 2026, down from $246,615,619.35 in January 2025. Medical marijuana sales also declined, falling from about $710,000 to roughly $402,000 year over year.
Under the old tax structure in place during January 2025, marijuana was subject to a 10% excise tax on adult-use sales and the 6% state sales tax. Using the official January 2025 totals, those taxes generated an estimated $39.5 million in revenue.
Beginning in 2026, Michigan added a 24% wholesale tax on adult-use marijuana transfers. The wholesale value is calculated using pricing data obtained and published by the State of Michigan, with Treasury assuming retail prices are 50% higher than wholesale. In practical terms, that formula results in the wholesale tax functioning at roughly 16% of adult-use retail sales value.
Applying that calculation to the official January 2026 adult-use sales total of $226,432,552.02 results in approximately $36.23 million in wholesale tax revenue alone.
That wholesale layer sits on top of the existing taxes. In January 2026:
• The 6% sales tax generated approximately $13.61 million
• The 10% excise tax generated approximately $22.64 million
• The 24% wholesale tax generated approximately $36.23 million
Combined, total estimated January 2026 marijuana tax revenue reached $72.48 million.
The math is straightforward. Sales fell by more than $20 million year over year. Tax revenue increased by roughly $33 million.
The difference is structural.
By layering the wholesale tax on top of the existing retail taxes and using wholesale pricing data obtained by the State of Michigan, Lansing significantly increased the amount collected per dollar of cannabis sold.
If January’s wholesale collections continue at the same pace, the state could exceed its own revenue projections. Michigan officials estimated the new 24% wholesale marijuana tax would generate approximately $420 million in annual revenue.
At $36.23 million in January alone, the wholesale tax is tracking at an annualized pace of $434.76 million, which would exceed projections by roughly $14.76 million.
Of course, January represents just one month of data. Sales fluctuate seasonally, and market conditions could shift throughout the year. But early returns suggest the wholesale tax is performing at or above the state’s expectations.
For now, the numbers tell a clear story:
Lower sales.
Higher tax collections.
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