Michigan Gov. Gretchen Whitmer’s 2026–27 budget proposal includes new and increased taxes on nicotine and tobacco products, imposing a 57% wholesale tax on vaping products and nicotine pouches, raising the tax on other tobacco products from 32% to 57%, and increasing the cigarette tax from $2 to $3 per pack. The measures are projected to generate about $232 million in additional annual revenue to support Medicaid, smoking cessation, and cancer prevention programs, and will be debated by state lawmakers in early 2026.
