Connecticut Cannabis Tax Revenue Up 67% Due to Potency-Based Tax Model

Connecticut has generated far more cannabis tax revenue this year than it did during the same timeframe last year despite relatively unchanged sales rates, CT Insider reports.

Cannabis retailers in Connecticut generated about $95.3 million in combined adult-use and medical sales during the first quarter of 2026, a 1.6% increase over the same period in 2025. But the state earned about $12.45 million during that stretch this year, about 67% more than the $7.44 million recorded last year over the same period.

The revenue discrepancy stems from Connecticut’s current cannabis tax structure, which sets the rate based on total THC in a product — the rate is 0.625 cents per milligram of THC in cannabis flower products, 2.75 cents per milligram in infused edibles, and 0.9 cents per milligram for other cannabis products.

Lawmakers have already approved changes to the tax system that eliminate the THC-based tax in favor of a 10.75% cannabis retail tax, which will be coupled with the state’s 6.35% sales tax and an additional 3% municipal tax, the report said. The new tax system will take effect on October 1.