Connecticut Sales Tax Guide

Some of the various types of sales and use tax Connecticut levies might change more often than the state’s sales tax. Check the tax rates frequently to ensure you charge the appropriate sales tax rate.

Sales and use tax

The state sales and use tax rate has several exceptions, including:

• Rental or leasing of passenger motor vehicles for 30 days or less: 9.35 percent.
• Sale of most motor vehicles for more than $50,000: 7.75 percent.
• Jewelry, whether imitation or real: 7.75 percent.
• Clothing, footwear, and accessories including luggage, handbags, umbrellas, watches, and wallets: 7.75 percent.
• Computer and data processing services: 1 percent.
• Motor vehicles to a nonresident member of the Armed Services and resident members of the Armed Services and their spouses, if they are stationed in Connecticut and are full-time active duty: 4.5 percent.
• Vessels, trailers to transport vessels, and motors for vessels: 2.99 percent.
• Meals and certain drinks: 7.35 percent.

Business taxpayers can claim sales tax and use tax, including these exceptions, on a combined sales and use tax return. Businesses that purchase goods for resale need a resale certificate so they do not have to pay taxes upon purchase. 

The business must collect taxes on the resale of goods and services and remit taxes and reports to the state. If a business purchases retail goods for resale but uses the goods instead, the business must pay the use tax on the items used.

Remote sellers

Marketplace sellers and other remote sellers who do not have a business location in Connecticut should collect Connecticut sales tax on tangible personal property sold to Connecticut residents. Most businesses collect sales and use tax for other states as a convenience for the buyer.

If a remote seller has less than 200 retail sales into Connecticut and has at least $100,000 in gross receipts during a 12-month period ending on September 30, the remote seller must register for a Connecticut sales tax account and pay sales tax through the portal.

If a remote seller does not collect sales tax, the Connecticut resident must pay use tax on the items and services purchased. If the purchaser is a business, it should be prepared to show a tax exemption certificate for any purchases meant for resale.

A marketplace facilitator is someone who:

• Facilitated retail sales of at least $250,000 during the last 12-month period;
• Collected receipts from customers and remits payments to marketplace sellers; and
• Receives compensation or some other consideration for his services.

Those who are considered marketplace facilitators must register with the Connecticut State Department of Revenue Services and obtain a Sales and Use Tax Permit.

Certain industries

Some industries have different sales and use taxes as follows:

• Room Occupancy: 15 percent for hotels, motels, lodging houses, and short-term home rentals. 11 percent for bed and breakfast establishments.
• Prepaid Wireless E 911 Fee: $0.68.
• Admission and Dues: Amusement, entertainment, recreation, movies, theaters, concerts, sporting events, amusement parks, sporting events – 10 percent. Certain venues and events must collect 5 percent. Movie tickets that cost more than $5 are charged a tax rate of 6 percent.
• Dry Cleaning Surcharge: Dry cleaners must charge the state tax rate of 6.35 percent plus a 1 percent surcharge for dry cleaning only (not laundering).
• Rental Surcharge: 2.75 percent (for machinery, such as bulldozers, etc.)
• Tourism Surcharge: For renting motor vehicles – $1 per day per rental.
• Cigarettes (Retailers and dealers): 217.5 mills per cigarette.
• Electronic Cigarette Products: 10 percent.
• Tobacco Products: 20 percent of the wholesale price.
• Motor Vehicle Fuel Tax for Diesel: $0.40.1 per gallon through June 30, 2022.

This list of taxes for different industries is not a complete list of taxes for different industries. To check what the retail sales tax is for a business’s industry that is not listed, contact a business tax attorney.