Connecticut Sales Tax

Whether you are a local storefront or an e-commerce brand selling into the “Constitution State,” navigating Connecticut’s sales tax landscape is relatively straightforward compared to other states because of its lack of local taxes. However, the state makes up for that simplicity with specific “luxury” rates and a unique “dual-threshold” economic nexus rule.

Connecticut Sales Tax Rates

Connecticut is one of the few states with no local sales taxes. This means you do not have to track different rates for different cities or counties. However, the state uses a tiered system based on the type and value of the item sold.

State Tax Tiers
General Sales Tax: 6.35% – The standard rate for most tangible personal property and taxable services.

Meals and Beverages: 7.35% – Applies to prepared meals from restaurants, caterers, and certain grocery store items.

Luxury Tax: 7.75% – Applies to the entire purchase price of high-value items, including:

• Motor vehicles priced over $50,000.
• Jewelry priced over $5,000.
• Clothing, footwear, handbags, and luggage priced over $1,000.

Computer and Data Processing: 1% – A reduced rate for B2B services, including website hosting and SaaS purchased for business use. (Note: B2C/Personal use software is taxed at the full 6.35% rate).

Vessels/Motors: 2.99% – Applies to boats and boat motors.

Connecticut Nexus

Physical Nexus

Only small businesses with a physical or economic nexus, or significant presence, in Connecticut are responsible for collecting and remitting sales tax on purchases made by Connecticut customers. However, the definition of “doing business” in the state is presented by Connecticut statute as applying broadly, with specific stipulations including:

• Having an employee, contractor, or other representative present in the state for more than two days per year
• Having an office, storefront, or another place of business in the state
• Owning real or personal property in the state
• Delivering merchandise into the state in a personal vehicle as opposed to through a common carrier

If you meet any of these requirements, you’ll have to register with the state to collect sales tax for full tax compliance. There is also a provision for online sellers, commonly referred to as an Amazon Law, that requires an out-of-state company that makes sales through affiliates located in Connecticut, and that has over $2,000 in gross receipts from those sales to register to collect sales tax as well.

Economic Nexus

Connecticut is unique because you must meet both criteria during the 12-month period ending September 30 to trigger economic nexus:

• $100,000 in gross receipts; AND
• 200 or more retail transactions into the state.

Note: If you only meet one of these thresholds, you generally do not have economic nexus. However, once you meet both, you must register and begin collecting tax by the following October 1.

Marketplace Facilitators

In Connecticut, a platform is officially classified as a facilitator—and thus required to collect tax—if it facilitates at least $250,000 in retail sales during the prior 12-month period. For third-party sellers using a facilitator, the nexus thresholds for economic nexus apply in the same manner.

What is Taxable in Connecticut

Tangible Goods

Most sales of tangible personal property and many services provided in Connecticut are subject to sales taxes. Groceries are exempt, as they are in most places, along with medical equipment and prescription drugs. Other exemptions include:

• Car seats
• Bike helmets
• Internet access services
• Firearm safety devices
• Newspapers
• Magazines sold through subscription
• Shoe repair services
• Vegetable seeds suitable for planting to grow food for human consumption

View a full list of exemptions on the Department of Revenue Services website. Non-prescription drugs were previously exempt, but that statute was repealed in 2011. Shipping and handling charges are taxable if the item being shipped is also taxable, and this is true regardless of how the charges are listed on the receipt or invoice.

Services

Most services are also taxable in Connecticut, but certain organizations and individuals may obtain exemption certificates based on their specific circumstances. Nonprofits are eligible to receive a waiver at this point, although removing that provision has recently been proposed in the state legislature.

Shipping and Handling

Shipping and delivery charges are taxable if the item being sold is taxable, even if stated separately on the invoice. If the product itself is tax-exempt, the shipping charge for that item is also exempt.

Digital Goods and Services

Digital products like E-books, digital music, and movies are considered tangible personal property and are taxable at the state level (2.9%). Software as a Service is generally exempt from state tax. However, many Home-Rule cities (including Denver) consider SaaS to be taxable software. You must check the local rules for each city where you have customers.

Exemptions

Groceries: Food for home consumption is exempt from the 2.9% state tax, but many local cities still tax groceries at their local rate.

Medical: Prescription drugs and most prosthetic devices are exempt.

Resale: Purchases for resale are exempt with a valid Colorado Resale Certificate.

Sales Tax Holidays

Connecticut has a sales tax holiday for Back-to-School. Exempt purchases include general clothing and footwear priced at $100 per item or less. Certain items are excluded, such as jewelry, sports uniforms, protective equipment, accessories, and insoles.

More Information

Registration and Filing

You can register for a Connecticut sales tax permit online, or you may do so in person at one of the Department of Finance’s local field offices. Upon submitting your application, you will receive a temporary permit to use until you receive your permanent one. There is a $100 application fee, and permits must be renewed every five years. There is no renewal fee if your account is active and in good standing at the time of the renewal.

Filing must be done online using myconneCT on the Connecticut Department of Revenue’s website or over the phone through the Business TeleFile System. If you are late filing your return, you’ll need to use the online service, as the TeleFile system won’t work.

Filing Frequencies and Deadlines

Sales tax returns and payments are due on the last day of the month following the close of the period in question. If this date falls on a weekend or holiday, filing and payment by the following business day are acceptable. Most new sellers will be assigned a quarterly filing frequency, although this can be adjusted up or down based on the volume of the sales you make over the course of the year.

For instance, if your total sales tax liability for the previous 12-month period is less than $1,000, you will be notified in writing that you may file annually instead of quarterly. On the other hand, if your total business tax liability for the previous 12-month period is more than $4,000, you will receive a notification that you must file monthly instead.

Monthly Due Dates

Period	Due Date
January	February 28
February	March 31
March	April 30
April	May 31
May	June 30
June	July 31
July	August 31
August	September 30
September	October 31
October	November 30
November	December 31
December	January 31

Quarterly Due Dates

Period	Due Date
January – March (Q1)	April 30
April – June (Q2)	July 31
July – September (Q3)	October 31
October – December (Q4)	January 31

If you file annually, your returns and payments are due by January 31 of the following year. Zero returns are required in Connecticut, so even if you made no taxable sales in each period, you must still file a return as long as you hold a valid Connecticut sales tax permit.

Penalties and Interest

Late filing and payment will incur penalties, with a fee of 2% of the total tax due assessed to payments made less than five days late. A fee of 5% of the tax due is added when returns or payments are between five and 15 days late, and 10% is charged for returns or payments more than 15 days late. In addition, interest on tax due accrues at a rate of 1% per month for as long as it’s delinquent. There is also a failure to comply penalty added to your tax bill if you pay by check rather than through EFT as instructed.

Resources

• Connecticut Department of Revenue
• Exemptions from Sales and Use Taxes
• myconneCT

Connecticut Sales Tax Software

Complying with Connecticut sales and use tax regulations is somewhat easier than it is in other states thanks to the fact that there’s only one applicable tax rate. However, it can still be a lot to keep track of, particularly if Connecticut isn’t the only state you make sales in. Tracking your taxable sales, filing returns on time, and making sure all payments are collected at the proper rates based on location is essential, but it also vastly complicates your small business operations.

Fortunately, you can take advantage of TaxTools, tax calculator software specifically designed to help you manage your collection and remittance of sales tax in multiple states and through various eCommerce platforms. TaxTools tax calculator keeps track of any applicable changes to state sales tax laws, provides up-to-date reports on your taxable sales, makes sure your returns are filed on time, and quickly calculates the proper sales tax rate for every sale you make.

This software is compatible with many ecommerce platforms, so the only change you’ll notice will be how much more streamlined your business processes are. If you’d like to learn more about how TaxTools can benefit you, click here to sign up for a free trial today.

Last updated January 2026