Everything you need to know about collecting sales tax in Connecticut.

When do I need to collect sales tax in Connecticut?

As an e-commerce seller, you will need to collect sales tax in Connecticut if you have:  

  • $100,000 in annual retail sales in (economic nexus), AND 
  • 200 total transactions threshold, OR
  • Physical presence (nexus) in Connecticut.  

What is the sales tax rate for Connecticut?

Below are sales tax rate ranges for Connecticut. Learn more on the Connecticut Department of Revenue site.

  • State: Connecticut’s general sales tax rate is 6.35%.  
  • Local: Connecticut localities do not impose their own additional sales tax. 

Other sales tax rates are imposed under Connecticut law as follows:

  • Sale of computer and data processing services. (1%)
  • Sale of vessels, motors for vessels, trailers used for transporting a vessel, and dyed diesel fuel sold by a marine dock exclusively for marine purposes. (2.99%)
  • Sale of a motor vehicle to a nonresident member, or a member and his or her spouse jointly, of the armed forces of the United States stationed on full-time active duty in Connecticut. (4.5%)
  • Sales of meals and certain beverages. (7.35%)
  • The following have a 7.75% sales tax rate:
    • Most motor vehicles with a sales price of more than $50,000.
    • Items of jewelry, whether real or imitation, with a sales price of more than $5,000.
    • Articles of clothing or footwear intended to be worn on or about the human body, or a handbag, luggage, umbrella, wallet, or watch, with a sales price of more than $1,000.
  • Rental or leasing of a passenger motor vehicle for a period of 30 consecutive calendar days or less. (9.35%)

What is the physical nexus threshold in Connecticut?

Certain business activities create physical nexus in Connecticut. If you have physical nexus, you are required to collect and remit sales tax on all taxable sales that are shipped to Connecticut.

Examples of business activities that can create physical nexus in Connecticut include:

  • A physical office or place of business 
  • An employee or independent contractor present in the state more than two days per year 
  • Ownership of personal property 
  • Inventory or goods in a warehouse  
  • Merchandise delivery in Connecticut taxpayer vehicles.  


What is the economic nexus threshold in Connecticut?

Once you have economic nexus established, you will be obligated to collect sales tax from buyers in the state.  To have economic nexus in Connecticut your business meets the following criteria:

  • $100,000 or more in gross receipts from sales in the state AND
  • 200 or more separate retail transactions in a given year.
  Gross receipts include wholesale and exempt sales and sales you make through a marketplace facilitator are included. The measurement period is the 12-month period preceding September 30.  For example, if you exceed the threshold on July 15, 2023, but have not exceeded the threshold as of September 30, 2022, you need to collect tax beginning October 1, 2023. 


What are considered taxable item sales in Connecticut?

In Connecticut, tangible goods are taxable. Here are a few examples of tangible goods:
  • Tangible personal property, unless specifically exempted 
  • Prepared food  
  • Clothing (unless during the specified holiday) 
  • Software as a Service (SaaS) 
  • Digital goods 


What are considered non-taxable or exempt items in Connecticut

Here are a few examples of non-taxable and exempt items in Connecticut:
  • Some services 
  • Food for home consumption 
  • Certain safety gear 
  • Some protective equipment 
  • College textbooks  


See the Connecticut Exemption from Sales and Use Taxes Page for more information.

Sales Tax Holidays in Connecticut

Connecticut recognizes a week-long sales tax holiday that exempts clothing and footwear priced below $100. It begins on the third Sunday in August and continues through the following Saturday. 

See the Connecticut Tax Exclusion Page for more details.

Is Connecticut a Streamlined Sales Tax (SST) member?

Currently, Connecticut is not a full or associate member of the Streamlined Sales Tax Governing Board (SSTGB).  


How do I register for a sales tax permit in Connecticut?

You can register online at the Connecticut Department of Revenue Services (DRS) myconneCT online center.

In order to complete your business tax registration, you will need:
  • The Federal Employer Identification Number (FEIN) of the business or the Social Security Number (SSN) of the sole proprietor. If your business does not have an FEIN (and you are not a sole proprietor), you need to apply for an FEIN with the IRS. Apply for an FEIN.
  • The legal name of the business or the sole proprietor's name.
  • The business name (DBA), if applicable.
  • The business address.
  • Banking information to pay permit/license fees (if applicable). Note that the application fees once submitted are not refundable.
  • The names and Social Security Numbers of any responsible owners and/or officers.
    TaxCloud can also handle all state registrations for you. Get in touch with our team here to find out more.    

Have questions? Get in touch with our team of TaxGeeks here