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This Connecticut sales tax guide is current for 2026. The state rate is 6.35%, it has not changed since 2011, and no city or town adds a local rate on top. That makes Connecticut simpler than most of its neighbors, but the state runs several special rates, taxes a long list of business services, and changed two exemptions in 2026.
The general rate of 6.35% applies to the retail sale, lease or rental of most goods, including digital goods, and to taxable services. Because there are no local add-ons, a sale in Hartford, Stamford or New Haven carries the same rate.
The DRS rate table lists these special rates:
| Rate | What it applies to |
|---|---|
| 1% | Computer and data processing services, and certain prewritten software accessed or transferred electronically for business use |
| 2.99% | Vessels, motors for vessels and trailers used to transport a vessel |
| 4.5% | Motor vehicles sold to qualifying nonresident military members |
| 6.35% | General rate on goods, digital goods and taxable services |
| 7.35% | Meals and certain beverages |
| 7.75% | Motor vehicles over $50,000; jewelry over $5,000; clothing, footwear, handbags, luggage, umbrellas, wallets and watches over $1,000 |
| 9.35% | Passenger motor vehicle rentals or leases of 30 days or less |
| 15% | Hotel and lodging occupancy |
Two exemptions changed this year:
Retailers should update point-of-sale tax codes for school supplies now, since the exemption is permanent and no longer tied to the August week. More on how these events work is in our 2026 sales tax holiday guide.
An office, store, warehouse, employees, inventory or regular in-state deliveries in your own vehicles all create nexus. So can independent sales reps working in the state.
A remote seller must register and collect when it has both $100,000 or more in gross receipts from Connecticut retail sales and 200 or more retail sales into the state during the 12-month period ending on the preceding September 30. The test is set out on the DRS page on registering your business with DRS, and the September 30 lookback means a seller measures its Connecticut sales once a year, not on a rolling basis.
The test uses "and," which is less common. An online seller with $400,000 of Connecticut sales spread across 150 large orders does not meet it, while one with $105,000 across 900 orders does. Once you cross both lines, register before making further sales. For a state-by-state view of these tests, see our article on economic nexus for growing businesses.
Marketplace facilitators such as Amazon and Etsy collect and remit Connecticut tax on the sales they facilitate. A seller who sells only through those platforms usually does not collect separately, but a seller with its own website must still look at its direct sales.
Registration is done online through myconneCT, the portal run by the Department of Revenue Services (DRS). You will need:
The fee is $100. Operating without a permit carries a $250 penalty for the first day and $100 for each following day, plus possible criminal fines, according to DRS. If you have been selling into Connecticut without a permit, talk to an adviser about a voluntary disclosure agreement before registering, since VDAs typically limit the lookback and waive penalties.
A permit to collect tax is a different document from a resale certificate given to suppliers. Our explainer on the resale certificate vs. sales tax permit covers the difference.
Most tangible personal property is taxable at 6.35%, including clothing at any price (and 7.75% above $1,000), furniture, electronics, and digital goods such as downloaded music, e-books and apps.
Connecticut taxes far more services than most states. The DRS list of taxable services includes:
A consulting firm based in Massachusetts that bills a Connecticut client for management consulting should look closely at whether it owes Connecticut tax on those fees. Many out-of-state service businesses miss this.
Missing or incomplete certificates are the most common audit adjustment we see. A good exemption and resale certificate process collects the certificate before the first exempt invoice, not after.
Returns are filed on Form OS-114 through myconneCT, and both filing and payment must be done electronically. New businesses start as monthly filers, according to the DRS sales and use tax companion guide. DRS can later move an account to quarterly or annual filing based on its tax liability, and it notifies you in writing when your frequency changes. Each return is due on the last day of the month after the period ends:
| Filing frequency | Period covered | Due date |
|---|---|---|
| Monthly | One calendar month | Last day of the following month |
| Quarterly | January to March, April to June, July to September, October to December | April 30, July 31, October 31, January 31 |
| Annual | Calendar year | January 31 of the following year |
Keep filing at the frequency on your account until DRS tells you it has changed. File a return for every assigned period even when you had no sales, since a missed zero return still triggers a penalty.
Under the DRS Form OS-114 instructions, late payment draws a penalty of 15% of the tax due or $50, whichever is greater, plus interest of 1% per month or fraction of a month from the due date until payment. A separate graduated penalty applies when a business pays by means other than electronic payment. On $6,000 of tax paid two months late, that is a $900 penalty and $120 of interest.
Use tax applies at the same rates when Connecticut tax was not charged on a taxable purchase, for example equipment bought from an out-of-state vendor that does not collect Connecticut tax. Registered businesses report it on the OS-114. Businesses without a sales tax permit report it on a business use tax return. A practice that buys $25,000 of untaxed furniture from a New Hampshire dealer owes $1,587.50 in Connecticut use tax.
Most Connecticut errors we clean up trace back to the first month of selling. Before the first taxable invoice goes out, work through these steps:
These are the issues that show up most often when we review Connecticut filings for new clients:
Connecticut sits between states with very different systems. Massachusetts has a single 6.25% rate, New York layers local rates on top of its state rate, and New Hampshire has no general sales tax. Our guides to Massachusetts sales and use tax and New Hampshire's lack of a sales tax cover the neighbors.
For businesses selling into several states, sales tax automation software handles Connecticut's special rates by product code and keeps certificates in one place. Keep sales records, certificates and returns for at least as long as DRS can assess, and longer if a return was never filed. If DRS opens an audit, our notes on how to handle a sales tax audit explain what to prepare.
No. Every city and town uses the state rates, so the only variation comes from the special rates for meals, luxury goods, rentals and similar categories.
Delivery charges on a taxable sale are generally part of the taxable sales price. If the item being shipped is exempt, the delivery charge generally follows the item. Configure your invoicing so shipping inherits the tax status of the items on the order.
Yes, at 6.35% for items up to $1,000 and 7.75% above that. The only break is Sales Tax-Free Week in August, when qualifying clothing, footwear, backpacks and cleats under $300 per item are exempt.
Yes. Software and cloud services used for business are taxed at the 1% computer and data processing rate, while personal-use purchases are taxed at 6.35%. Keep records showing business use when you charge or pay the lower rate.
Close the account in myconneCT and file a final OS-114 covering sales through your last day of business. Leaving a dormant account open means DRS still expects returns.
Madras Accountancy prepares Connecticut and multistate sales tax filings for US businesses and supports CPA firms that outsource multistate sales tax compliance. Contact our team to review your Connecticut registration and filing setup.
The section 4960 excise tax is 21% of nonprofit pay over $1M. From 2026 it covers all employees. See the medical carve-outs, Form 4720 and a worked example.
The paid family and medical leave tax credit is permanent from 2026. See the 12.5% to 25% rates, the premium option, the 6-month rule and how Form 8994 works.
Opportunity zones become permanent in 2027 under the One Big Beautiful Bill. See the new deferral, rural bonus, and the 2026 handoff.
