Last verified: March 2026
The Three-Layer Tax Structure
Connecticut imposes three separate taxes on adult-use cannabis purchases:
| Tax | Rate | Notes |
|---|---|---|
| State Sales Tax | 6.35% | Standard CT sales tax; applies to all retail purchases |
| Municipal Tax | 3% | Collected by host municipality |
| THC-Based Excise | Varies by product | Charged per milligram of THC |
| Total Effective Rate | 19–24% | Depends on product type and THC content |
The Potency-Based Excise: Unique in New England
Connecticut is the only New England state that taxes cannabis purely by THC potency rather than a flat percentage of price. The excise rates per milligram of THC:
| Product Type | Rate per mg THC | Effective Rate |
|---|---|---|
| Flower | $0.00625/mg | ~10% |
| Edibles | $0.0275/mg | ~15%+ |
| Other (concentrates, etc.) | $0.009/mg | ~10–15% |
This approach means higher-potency products carry proportionally higher tax burdens. A 30% THC flower costs more in excise than a 20% THC flower of the same weight. Edibles carry the highest per-milligram rate at $0.0275, making Connecticut’s edible tax among the steepest in the country.
Medical Tax Exemption
Registered medical patients are exempt from all three taxes — sales, municipal, and excise. This is a more generous exemption than most states, where medical patients typically still pay standard sales tax. In Connecticut, a medical card eliminates the entire 19–24% tax burden.
Revenue Allocation: The Equity Shift
Connecticut’s revenue allocation is designed to shift progressively toward equity over time:
| Period | Equity | Prevention | General Fund |
|---|---|---|---|
| 2023–2026 | 60% | 25% | 15% |
| 2026–2028 | 65% | 25% | 10% |
| 2028+ | 75% | 25% | 0% |
By 2028, zero percent of cannabis tax revenue goes to the general fund. Every dollar flows to either equity programs or substance abuse prevention. This is the most equity-forward revenue allocation in the country.
HB 5109: The Flat Tax Proposal
Pending legislation HB 5109 / SB 59 would replace the three-layer structure with a flat 10.75% excise tax. Proponents argue the potency-based calculation is complex for retailers and confusing for consumers. Opponents worry that a flat rate would reduce revenue and eliminate the public health benefit of taxing higher-potency products at higher rates.
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