Connecticut cannabis sales flat, but state collected more taxes. What happened?

Connecticut cannabis sales are holding steady, but state cannabis tax collections surged 67% in early 2026.

That’s thanks to Connecticut’s cannabis potency tax. Consumers’ preference for high-THC products meant the state collected $12.45 million in cannabis taxes from January through April, up from $7.44 million during the same period in 2025, according to CT Insider.

Total recreational and medical sales were flat, reaching about $95.3 million through April – up just 1.6% year over year, the news outlet reported.

Overall, Connecticut cannabis sales revenue is holding relatively steady, at $290 million in 2025 compared to $293 million in 2025. But until it’s phased out later this year as planned, Connecticut’s THC tax is creating headaches for operators.

Why are tax collections up and sales flat?

But consumers are buying more products than ever before, as MJBizDaily has reported. And consumers appear to be preferring high-potency products based on Connecticut’s THC-based excise tax.

Instead of a flat percentage on the sale price, the state charges by the milligram of THC:

• $0.00625 per milligram of THC in flower
• $0.0275 per milligram of THC in edibles
• $0.009 per milligram on other products.

For example, the state charges $2.75 in THC taxes on a 100-milligram edible.

Those charges stack on top of the 6.35% state sales tax and a 3% municipal tax.

The average price per gram dropped from $12.51 in March 2024 to $7.22 in March 2026, a decline of more than 40%.

But the potency tax didn’t drop. Consumers kept buying higher-THC products and paying the same per-milligram rate regardless of what the product cost at the register. On some products, the effective tax rate reaches 35%.

Is relief from the THC potency tax in sight?

Relief arrives Oct. 1 when Connecticut replaces the THC-based tax with a flat 10.75% levy on cannabis gross receipts. The 6.35% sales tax and 3% municipal tax will remain.

In the meantime, with dollar sales staying flat but tax collections increasing, operators say the situation is bad for consumers.

“The current tax structure is an absolute nightmare for customers,” Ben Zachs, owner of cannabis retailer Fine Fettle, told CT Insider.

“With declining prices but a tax based on potency, the effective tax rate can be up to 35% on certain products.”

The structure also hurts licensed operators competing with Massachusetts, New York and Rhode Island, where prices are generally lower, CT Insider reported.

“This really hurts our competitive reality as a market against our neighbors and the illegal market,” Zachs said.