Total Range for 2025
| Base state sales tax rate | 6.35% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 6.35% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | Last day of following month | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
The base state sales tax rate in Connecticut is 6.35%, but since there is no local tax the total sales tax range is just 6.35%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Example of using the sales tax rate in a tax calculation:
Let’s say you run a small clothing store in Connecticut and a customer purchases a jacket for $75.00 (before tax). Here’s how to calculate the sales tax:
- Convert the sales tax rate into a decimal: 6.35% / 100 = 0.0635
- Multiply the sales tax rate by the item price: 0.0635 * $75.00 = $4.76
- Item price: $75.00 + Sales tax: $4.76 = Total Price: $79.76
Important Connecticut sales tax variations
While Connecticut has a general sales tax of 6.35%, some items have different rates:
- 1% for computer & data processing services and some software
- 2.99% for boats, boat motors, and related items
- 4.5% for cars sold to active military stationed in CT
- 7.35% for meals and certain drinks
- 7.75% for luxury cars (> $50,000), expensive jewelry (> $5,000), and high-end clothing/accessories (> $1,000)
- 9.35% for short-term car rentals (<= 30 days)
Nexus: Why do you need to collect sales tax in Connecticut?
If you’re selling goods and services in Connecticut then sales tax might apply! To determine your obligation, you must understand “nexus,” which ties businesses to states for tax purposes.
Two types of nexus exist:
- Physical Nexus: Having a physical presence, like an office, warehouse, or employees in Connecticut, triggers this type. If you do, you likely need to collect sales tax.
- Economic Nexus: This kicks in when your sales within Connecticut exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.
In Connecticut, there is also a transaction threshold of 200, which means that even if your sales aren’t over $100,000 if you’ve sold more than 200 items then you still need to pay sales tax.
Services
- Generally, services are not taxable in Connecticut.
- This means you wouldn’t collect sales tax when selling services like consulting, design, or repairs (unless there are specific materials included).
Goods
- Connecticut has a 6.35% sales tax on most tangible personal property sold at retail. So, if you’re selling physical products like appliances or furniture, these would be taxable.
- It’s important to note that items like groceries and prescription medications are exempt from sales tax.
Freight/Shipping
- Shipping and freight charges are generally taxable in Connecticut if they’re related to the sale of taxable goods. This applies whether you provide the shipping yourself or use a third-party carrier.
- However, if the shipping is for exempt goods (like groceries), the charges might be exempt as well.
Clothing
- While most clothing is taxable, certain protective clothing and gear are exempt from this tax.
- Connecticut imposes a 7.75% luxury tax on apparel, handbags, luggage, umbrellas, wallets, and watches priced over $1,000, which is higher than the general sales tax rate of 6.35%.
Electronics
- Electronics are subject to sales tax
SaaS
- SaaS is taxable in Connecticut
- SaaS for personal use is subject to the full state tax rate, while SaaS for business use is taxed at a reduced rate of 1%.
Digital Products
- Digital goods and electronically accessed or transferred prewritten software sold for personal use in Connecticut are taxed at the standard 6.35% rate, while those sold for business use are taxed at a reduced rate of 1%.
Software
- In general, pre-written software delivered electronically is considered tangible personal property and therefore taxable.
- However, custom software developed specifically for a client might be considered a service and exempt. It’s best to consult a tax professional (like us!) for a definitive answer on SaaS taxation.
How to register for sales tax in Connecticut
Here’s a breakdown of how to register for sales tax in Connecticut:
Online Registration:
- Go to the myconneCT portal: https://drs.ct.gov/eservices/_/
- Click on “New Business/Need a CT Registration Number?”
- Register for an account or log in if you already have one.
- Select “Sales Tax” as the tax type you are registering for.
- Provide the required business information
- Pay the $100 application fee electronically (direct payment from checking/savings or credit card with a convenience fee).
Mail-in Registration:
- Download Form REG-1
- Complete the form with your business information.
- Include a check for $100 made payable to “Department of Revenue Services – State of Connecticut” with your application.
- Mail the completed form and check to the address provided on the form.
How to collect sales tax in Connecticut
- Register for a Sales Tax Permit: Apply online through the myconneCT portal. Alternatively, mail a completed Form REG-1 to them.
- Determine the Correct Tax Rate: Most goods have a 6.35% sales tax rate.
- Collect Tax at the Time of Sale: Add the appropriate sales tax to the advertised price of your taxable goods or services.
- Keep Accurate Records: Maintain detailed records of your sales, including taxable and non-taxable items, and the amount of sales tax collected for each transaction.
- File and Pay Sales Tax Returns: Connecticut requires electronic filing and payment of sales tax returns through myconneCT.
How to get a sales tax permit/license in Connecticut?
To obtain a sales tax permit in Connecticut, register online through the Connecticut Department of Revenue Services (DRS) Taxpayer Service Center. You’ll need to provide your business information, including your business name, address, and Federal Employer Identification Number (FEIN) or Social Security Number (SSN). The application requires a one-time, non-refundable fee of $100. Once approved, you’ll receive your sales tax permit, which allows you to collect and remit sales tax in Connecticut
When are Connecticut’s sales tax returns due?
The due dates for filing and paying Connecticut sales tax returns depend on the filing frequency assigned to you by the Connecticut Department of Revenue Services (DRS). This filing frequency is primarily based on your business’s sales volume.
Here’s a breakdown of the filing frequency and corresponding due dates:
- Monthly Filers: If your business has a high sales volume, you might be designated as a monthly filer. In this case, your sales tax return and payment are due on or before the 20th day of the following month. For instance, the return and payment for sales made in February would be due by March 20th.
- Quarterly Filers: For businesses with a moderate sales volume, the DRS might assign you quarterly filing. The due dates for quarterly filers are:
- April 30th: Covers sales from January – March (Q1)
- July 31st: Covers sales from April – June (Q2)
- October 31st: Covers sales from July – September (Q3)
- Annual Filers: Businesses with a low sales volume may be classified as annual filers. The annual return and payment for all sales made throughout the year are due by January 31st of the following year.
Is anyone exempt from sales tax in Connecticut?
In Connecticut, there are no exemptions for people themselves, but there are exemptions for certain types of purchases. Here’s a breakdown of who typically qualifies for sales tax exemptions:
- Charitable organizations: Sales tax generally doesn’t apply to purchases made by qualifying charitable organizations for their regular charitable functions. However, this exemption does not apply to all their sales. There are exemptions for occasional sales, sales where part of the purchase price is a donation, and sales by certain school-related entities, but it’s best to check with the Department of Revenue Services (DRS) for specifics.
- Government agencies: Purchases by government agencies are generally exempt from sales tax.
- Specific goods and services: Connecticut exempts the sale of certain goods and services from sales tax. These include:
- Food for home consumption
- Prescription drugs and medical devices
- Farm equipment
- Certain types of machinery
- Services (unless specifically taxed, like repairs)
Do I Have to Collect Sales Tax from Connecticut Customers if I Sell on Amazon, Walmart, eBay, or Etsy?
No.
Connecticut has a marketplace facilitator law. This means that marketplaces like Etsy or Amazon should collect sales tax on behalf of third-party sellers whose sales exceed $250,000 or 200 transactions.
However, if you meet the state's other sales tax nexus rules, you must collect sales tax on your other non-marketplace Connecticut sales.
