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ConnecticutSales Tax

A Complete Guide For Businesses

Automate My ConnecticutSales Tax Filings

State Rate
6.35%

Local Tax
no

Phone
(860) 297-5962

General requirements

Connecticut is a destination-based state (sales are taxed where the buyer is located).

  • Sales tax is charged on a retail sale, lease, or rental of most goods and taxable services
  • The state has a list of taxable services including consulting and advertising
  • Items purchased for resale aren’t taxed

Businesses may file in the following ways:

Rates

The Connecticut state sales tax rate is 6.35%. There are no additional local sales taxes in Connecticut.

A 9.35% tax rate is applied to the rental of passenger motor vehicles for 30 days or less.

A 7.75% tax rate is applied to certain large sales such as the sale of motor vehicles. Some computer-related services such as data processing and website design are taxed at 1%.

How food is taxed

General food items are not taxable, with the exception of candy and carbonated beverages. However, meals sold at establishments are taxed at the full rate.

Nexus in Connecticut

Businesses activities that establish a minimum tax connection to the state include:

  • Owning or leasing real or tangible personal property (TPP)
  • Maintaining an office
  • Having employees or agents present in the state

Economic nexus in Connecticut:

  • According to state law, out-of-state sellers whose sales into Connecticut exceed $250,000 gross revenue and 200 separate transactions in the previous calendar year are required to register for a Connecticut sales tax permit, collect sales tax on sales to Connecticut, and remit that sales tax to the state.
  • Effective date: Dec. 1, 2018

Find out more about nexus in Connecticut in their nexus guide.

Filing schedule

When you register, you’ll be set up to file returns on a quarterly or monthly basis. You must file even when no sales tax is due.

Due dates are as follows:

  • Annual filers: If your sales tax liability is less than $1,000 in a 12 month period, the Department of Revenue Services will change your filing status to annual and notify you in writing
  • Quarterly filers: Q1 returns are due on May 1, while returns for the following quarters are due at the end of the month following the filing period
  • Monthly filers: Returns are due at the end of the month for the previous month

Registering to collect sales tax in Connecticut

To obtain a Connecticut Sales and Use Tax Permit, apply online using the Taxpayer Service Center or in person at one of the local offices.

Penalties

The penalties for a return that is filed and paid late are as follows:

  • 2% of payment if less than 5 days late
  • 5% of payment if more than 5 days but less than 15 days late
  • 10% of payment if more than 15 days late

Interest is charged at a rate of 1% per month from the due date until the date of the payment.

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