Cannabis Tax Information
- Overview of the Statewide Cannabis Tax
- Registration for the Statewide Cannabis Tax
- Filing Returns and Paying the Statewide Cannabis Tax
- Calculation of the Statewide Cannabis Tax
- Municipal Level Cannabis Tax
Overview of the Statewide Cannabis Tax
The statewide Cannabis Tax is a tax that is imposed on retail sales of cannabis plant materials, cannabis edible products, and cannabis (other than cannabis plant material or cannabis edible products) by a cannabis retailer, hybrid retailer, or micro cultivator and is based upon the amount of tetrahydrocannabinol (THC) per milligram of said products.
It is important to note that retail sales of cannabis for adult use are authorized to begin at 10:00 a.m. on Tuesday, January 10, 2023.
For more information regarding the statewide Cannabis tax, please see Taxpayer Services Special Bulletin 2023-1, Frequently Asked Questions Concerning the Cannabis Tax.
Registration for the Statewide Cannabis Tax
To register for the statewide Cannabis Tax, each cannabis retailer, hybrid retailer, micro-cultivator must contact DRS at 860-297-4723, Monday through Friday, 8:00 a.m. to 4:30 p.m. or by contacting the agency’s primary point of contact for registration issues, Paul Silas. Registration questions may be emailed to Mr. Silas at: Paul.Silas@ct.gov
Filing Returns and Paying the Statewide Cannabis Tax
Each cannabis retailer, hybrid retailer, or micro-cultivator legally selling Cannabis in Connecticut must file and pay the Cannabis Tax using myconneCT on the DRS website at portal.ct.gov/DRS-myconneCT. As outlined in the steps below, the return must be filed electronically and the tax due paid by electronic funds transfer.
- Log into myconneCT.
- From the Summary screen, the Cannabis Tax Return will be available.
- On the Cannabis Tax panel, click the File Now hyperlink.
- A confirmation email will be sent to indicate the return was successfully submitted.
There are three schedules included as part of the Cannabis tax return filing. The schedules can be accessed by clicking on the Forms link in the grey box above.
Each cannabis retailer, hybrid retailer, or micro-cultivator must submit the appropriate schedule or schedules with their Cannabis Tax return as follows:
Schedule A – Sales of Cannabis Plant Material
This schedule is used to report each sale of cannabis plant material during the period covered by the return.
Schedule B – Sales of Cannabis Edible Products
This schedule is used to report each sale of cannabis edible products made during the period covered by the return.
Schedule C – Sales of Cannabis, Other Than Plant Material or Cannabis Edible Products
This schedule is used to report each sale of cannabis, other than cannabis plant materials or cannabis edible products, made during the period covered by the return.
Calculation of the Statewide Cannabis Tax
There are three different tax rates under the statewide Cannabis Tax. The applicable tax rate is determined by the type of product that is being sold. To this end, the statewide Cannabis Tax is imposed on the following products at the following rates:
- Cannabis plant materials: Six hundred twenty-five-thousandths of one cent ($0.00625) per milligram of total THC, as reflected on the product label;
- Cannabis edible products: Two and seventy-five-hundredths cents ($0.0275) per milligram of total THC, as reflected on the product label; and
- Cannabis, other than cannabis plant material or cannabis edible products: Nine-tenths of one cent ($0.009) per milligram of total THC, as reflected on the product label.
The statewide cannabis tax is in addition to the municipal level cannabis tax and the Sales and Use taxes. The example below illustrates the application of all three taxes:
| Example: | Chocolate Bar (100 mg of total THC/20 servings of 5 mg each) |
| Sales Price: | $30.00 |
| Sales Tax ($0.0635): | $ 1.91 |
| Municipal level Tax ($0.03): | $ 0.90 |
| Statewide Cannabis Tax ($0.0275/mg on edible products) |
$ 2.75 |
| Total |
$35.56 |
Each sale of cannabis made by a cannabis retailer, hybrid retailer, or micro-cultivator that is subject to the statewide Cannabis Tax is also subject to the municipal level cannabis tax.
Although DRS is not responsible for collecting the municipal level cannabis tax, the Department does play a role in the administration of this tax.
Each such municipality must provide contact information to DRS. Any and all questions related to the municipal level cannabis tax should be directed to the municipality in which the retailer, hybrid retailer, or micro-cultivator is operating.