Connecticut

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

(1) $100,000 in annual retail sales in (economic nexus), AND

(2) 200 total transactions threshold, or

(2) Physical presence in Connecticut (physical nexus).

Below, we will highlight some of the basic provisions of Connecticut sales tax law.

What is the tax rate range for Connecticut?

State: Connecticut’s general sales tax rate is 6.35%.

Local: Connecticut localities do not impose their own additional sales tax.

Connecticut Department of Revenue Overview

Do you have physical or economic nexus in Connecticut?

Physical nexus. 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.

Economic nexus. Connecticut recognizes economic nexus for any vendor with $100,000 or more in gross receipts from sales in the state AND 200 or more separate retail transactions in a given year. Once you have economic nexus established, you will be obligated to collect sales tax from buyers in the state.

Gross receipts include wholesale and exempt sales
Sales you make through a marketplace facilitator are included
The measurement period is the 12-month period preceding Sept. 30. For example, if you exceed the threshold on July 15, 2023, but had not exceeded the threshold as of September 30, 2022, you need to collect tax beginning October 1, 2023.

Connecticut Department of Revenue Nexus Details

What are examples of sales of taxable items?

Tangible personal property, unless specifically exempted
Prepared food
Clothing (unless during the specified holiday)
Software as a Service (SaaS)
Digital goods

What are examples of sales of nontaxable/exempt items?

Some services
Food for home consumption
Certain safety gear
Some protective equipment
College textbooks

Connecticut Exemption from Sales and Use Taxes Page

Are there any sales tax holidays?

Connecticut recognizes a one-week long annual sales tax holiday on clothing and footwear priced below $100.

The holiday begins on the 3rd Sunday in August and continues through the following Saturday

Connecticut Tax Exclusion Page

Is Connecticut a member of the SST (Streamlined Sales Tax)?

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

How to get a sales tax permit / links to register in this state?

You can register online at: https://portal.ct.gov/DRS/myconneCT/myconneCT

Rates

The general sales tax rate is 6.35%

The rate for data processing and certain computer services is 1%

Certain luxury clothing and jewelry items are taxed at 7.75%

For more information on product classifications and rates: Tax Information (ct.gov)