Michigan minimum wage increases from $12.48 to $13.73 an hour
Michigan’s minimum wage got a raise from $12.48 to $13.73 per hour on Jan. 1, marking a significant increase that has workers celebrating while some restaurant owners express concerns about rising operational costs. The wage increase affects thousands of workers across the state, with tipped employees also seeing their base pay rise to $5.49 per hour, representing 40% of the minimum wage.I had cracked some jokes about this earlier on the socials, but there sure were a lot of “bootlicker” comments with people screaming that this meant prices on everything were going up. It is surprising to at times to see my working class brethren be so unaware. I normally just try to stick with the main arguments of a wage going up by a dollar doesn’t mean the price of your burger is going up a dollar and prices have been going up whether wages go up or not. To me, the minimum wage going up is a win in every conceivable way.
Michigan Marijuana Taxes are going up
New 24% wholesale tax on marijuana expected to generate $420 million for Michigan road improvements. It goes into effect January 1. They took Michigan from one of the lowest taxes on Marijuana sales in the country to the one of the highest with today’s tax increase. It was a bipartisan decision. Good or bad depending on who you ask.I was irked by the way this went down. Republicans wanted a more moderate increase. It was the Dems that pushed for it to be higher. Still though, as long as they don’t try raising it again anytime soon we are still sitting pretty alright.
Michigan gas tax changes
Michigan’s gas tax changed significantly starting January 1, 2026, eliminating the 6% sales tax on fuel and raising the flat per-gallon tax from 31 cents to about 52.4 cents, shifting all gas tax revenue to roads, with minimal price impact expected by drivers due to the sales tax removal, though the new higher rate will adjust yearly for inflation. Key Changes (Effective Jan. 1, 2026) Sales Tax Eliminated: The 6% state sales tax on gasoline is gone, previously funding schools and local government. Flat Tax Increased: The existing 31-cent per-gallon gas tax rose to roughly 52.4 cents. Dedicated Road Funding: All fuel tax revenue now goes directly to road and bridge repair, a change lawmakers sought to stabilize infrastructure funding.
What Drivers See at the Pump Minimal Price Hike: While the flat tax jumped by over 20 cents, the removal of the sales tax means most drivers will only see a small increase, around 1.4 cents per gallon, according to the Michigan Treasury. Revenue Neutral Goal: The change aims to be revenue neutral for drivers’ overall spending but ensures more consistent funding for roads. Annual Inflation Adjustments: The new, higher tax rate will automatically increase each year with inflation, meaning gradual, small increases over time.
Why the Change? Lawmakers restructured the tax to create a more predictable and dedicated funding stream for Michigan’s extensive road system, moving away from the old system where the sales tax portion fluctuated with gas prices.
The MiLeg has tried to sell this to us as if it is “revenue neutral” and a “tax shift”, not a tax increase. Call it what you want but our gas taxes just went up and that inflation clause makes sure it goes up a bit more every year.