Michigan Seeks New Tax on Vaping Under Governor’s Budget

Michigan would close a loophole in its tax treatment of nicotine products under a proposal in Gov. Gretchen Whitmer’s fiscal 2026 budget that would treat vaping the same as cigarettes for tax purposes.

Whitmer, a second-term Democrat, Wednesday recommended a tax code modification that would tax vaping and non-tobacco nicotine products similarly to all other tobacco products. The budget projects $42.8 million in new revenue, which would be used to pay for initiatives aimed at smoking and cancer prevention, youth mental and physical health, and access to healthcare.

• Michigan currently imposes a per-pack tax of $2 on cigarettes, and a ...