Connecticut will implement two significant changes to its adult-use marijuana market on Thursday, October 1, including eliminating the state’s 70% THC potency cap on concentrates while replacing its THC-based marijuana tax system with a flat 10.75% retail tax. In addition, on the same day the state will begin recognizing out-of-state medical cannabis authorizations.
Under the first change, marijuana concentrates sold in the adult-use market will no longer be subject to the current 70% THC limit. Connecticut will continue to cap marijuana flower at 35% THC.
The change stems from Public Act 26-8, signed by Governor Ned Lamont in May, and Public Act 26-100, signed June 2.
Public Act 26-8 initially removed potency limits for marijuana flower, other plant material and concentrates. Public Act 26-100 subsequently restored the 35% limit for flower while retaining the removal of the 70% cap for concentrates and other marijuana plant material.
Current law generally prohibits adult-use marijuana products containing more than 70% THC on a dry-weight basis, with an exception for prefilled cartridges used in electronic cannabis delivery systems. Beginning Thursday, concentrates and other marijuana plant material will also be exempt from that restriction. Connecticut defines marijuana concentrates to include extracts, oils, tinctures, shatter and waxes.
At the same time, Connecticut will overhaul how recreational marijuana purchases are taxed.
The state currently imposes a potency-based tax of 0.625 cents per milligram of THC for marijuana flower, 2.75 cents per milligram for edibles and 0.9 cents per milligram for other marijuana products.
Beginning October 1, those rates will be eliminated and replaced with a statewide marijuana tax equal to 10.75% of a product’s sales price, regardless of its THC content, according to the Connecticut Department of Revenue Services.
The 10.75% marijuana tax will be imposed in addition to Connecticut’s 6.35% general sales tax and 3% municipal marijuana tax, resulting in combined percentage-based taxes of 20.1% of the pre-tax purchase price. Medical marijuana sales remain exempt from the statewide marijuana tax.
For example, a recreational marijuana product priced at $30 will be subject to about $3.23 in statewide marijuana tax, $1.91 in general sales tax and 90 cents in municipal marijuana tax, bringing the total purchase price to roughly $36.04.
The tax change was enacted through Public Act 26-68. It also increases the share of statewide marijuana tax revenue directed to Connecticut’s Social Equity and Innovation Account from 65% to 70% for the 2027 and 2028 fiscal years, while reducing the portion directed to the General Fund from 10% to 5%.
For the third change to the state’s cannabis policies taking effect Thursday, Connecticut will begin allowing qualifying out-of-state medical marijuana patients and caregivers to purchase from dispensaries and hybrid retailers on October 1. Buyers must present valid identification, their home state’s medical credential and a completed verification form.
Although recreational marijuana is legal in Connecticut, qualifying medical marijuana patients benefit from higher personal possession limits and tax-free purchases.
All three changes take effect at midnight as October 1 begins.
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