Higher Love Cannabis closes five Michigan dispensaries over tax burden

Higher Love Cannabis Co. has closed five of its nine dispensaries in Michigan’s Upper Peninsula, citing an “increasingly unsustainable operating environment” driven by the state’s 24% wholesale cannabis tax. The closures affect locations in Crystal Falls, Escanaba, Houghton, Munising, and Ontonagon. The company will continue to operate its remaining four locations in Ironwood, Marquette, Menominee, and Norway.

The decision follows the implementation of the wholesale tax on January 1, 2026, which applies when cannabis moves from licensed growers to retailers. Higher Love noted that while the wholesale tax, the 10% retail excise tax, and the 6% sales tax apply at different stages, their collective impact has strained the supply chain. The company stated that these pressures are compounded by market oversupply, falling prices, and shrinking margins, making it difficult for responsible operators in rural communities to remain viable.

Industry experts indicate that Michigan’s recreational cannabis sales fell to approximately $1.48 billion in the first half of 2026, compared to $1.57 billion during the same period in 2025. Analysts suggest the wholesale tax has contributed to job losses and business closures across the state’s cannabis sector.