Navigating Sales Tax in Connecticut

This guide provides an overview of Sales Tax in Connecticut, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Connecticut.

Last Updated: May 2025
Group 427320837 e1763784339445

1%

is the luxury tax rate Connecticut once imposed on expensive goods in the early 1990s.

Connecticut at a glance.

State

Connecticut

Tax Rate Range

1% - 7.75%

Economic Nexus Threshold

$100,000 in gross sales or 200 transactions

Filling Deadlines

Form OS-114 is due on or before the last day of the month following the end of each filing period.

Is SaaS Taxable?

Yes

Base Tax Rate:

6.35%

When should your
business collect Sales
Tax in Connecticut?

A business must begin collecting Connecticut sales tax once it establishes either physical or economic nexus in the state. Once nexus is established, registration is required, and tax must be collected starting immediately upon obtaining the temporary permit, which is issued at the end of the online registration process.

Connecticut physical sales tax nexus.

Connecticut considers you to have physical nexus when you have any in-state presence.

Sales tax physical nexus checklist for Connecticut

The following conditions might establish a physical nexus in Colorado:

Which services are taxable in Connecticut?

Connecticut taxes specific services rather than services generally, with a focus on computer/data processing and certain surcharges.

Connecticut sales tax information:

Connecticut uses destination-based sourcing, applying the appropriate state rate or alternate rate (6.35%, 7.75%, 7.35%, or 1%) to the taxable sale amount. No local taxes apply.

Connecticut taxes tangible personal property, prepared food, luxury goods, digital/data processing services such as SaaS, and shipping or handling charges when they relate to taxable products.

Register online through myconneCT using the REG-1 application; a temporary permit is available to print immediately, and a $100 non-refundable registration fee applies.

Once registered and issued a temporary permit, businesses must collect the correct Connecticut state rate or alternate rate on taxable sales and remit the tax electronically through myconneCT. Shipping and handling must be treated as taxable if the underlying products are taxable.

Sales Tax return due dates explained.

Connecticut assigns filing frequency based on prior-year tax liability: monthly for over $4,000, quarterly for $1,000–$4,000, and annually for less than $1,000. All returns must be filed electronically using Form OS-114 through myconneCT and are due on the last day of the month following the reporting period. Even if no sales occur, a return must be filed, and no prepayment schedule is required.

FAQs

Yes. Digital goods such as music, video, and e-books are taxable as tangible personal property, regardless of delivery method.

 

A retailer must start collecting sales tax by the first day of the first month at least 90 days after exceeding $100,000 in Colorado sales during the current year.

The state does not impose sales tax on services, but some home-rule cities may tax certain services, so sellers must check city requirements.

Related content.

Navigating Sales Tax in Connecticut

This guide provides an overview of Sales Tax in Connecticut, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Connecticut.

Last Updated: May 2025
Group 427320837 e1763784339445

1%

is the luxury tax rate Connecticut once imposed on expensive goods in the early 1990s.

Connecticut at a glance.

State

Connecticut

Tax Rate Range

1% - 7.75%

Economic Nexus Threshold

$100,000 in gross sales or 200 transactions

Filling Deadlines

Form OS-114 is due on or before the last day of the month following the end of each filing period.

Is SaaS Taxable?

Yes

Base Tax Rate:

6.35%

When should your
business collect Sales
Tax in Connecticut?

A business must begin collecting Connecticut sales tax once it establishes either physical or economic nexus in the state. Once nexus is established, registration is required, and tax must be collected starting immediately upon obtaining the temporary permit, which is issued at the end of the online registration process.

Connecticut physical sales tax nexus.

Connecticut considers you to have physical nexus when you have any in-state presence.

Sales tax physical nexus checklist for Connecticut

The following conditions might establish a physical nexus in Colorado:

Which services are taxable in Connecticut?

Connecticut taxes specific services rather than services generally, with a focus on computer/data processing and certain surcharges.

Connecticut sales tax information:

Connecticut uses destination-based sourcing, applying the appropriate state rate or alternate rate (6.35%, 7.75%, 7.35%, or 1%) to the taxable sale amount. No local taxes apply.

Connecticut taxes tangible personal property, prepared food, luxury goods, digital/data processing services such as SaaS, and shipping or handling charges when they relate to taxable products.

Register online through myconneCT using the REG-1 application; a temporary permit is available to print immediately, and a $100 non-refundable registration fee applies.

Once registered and issued a temporary permit, businesses must collect the correct Connecticut state rate or alternate rate on taxable sales and remit the tax electronically through myconneCT. Shipping and handling must be treated as taxable if the underlying products are taxable.

Sales Tax return due dates explained.

Connecticut assigns filing frequency based on prior-year tax liability: monthly for over $4,000, quarterly for $1,000–$4,000, and annually for less than $1,000. All returns must be filed electronically using Form OS-114 through myconneCT and are due on the last day of the month following the reporting period. Even if no sales occur, a return must be filed, and no prepayment schedule is required.

FAQs

Yes. Digital goods such as music, video, and e-books are taxable as tangible personal property, regardless of delivery method.

 

A retailer must start collecting sales tax by the first day of the first month at least 90 days after exceeding $100,000 in Colorado sales during the current year.

The state does not impose sales tax on services, but some home-rule cities may tax certain services, so sellers must check city requirements.

Related content.

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