Connecticut Sales Tax Laws

Connecticut Sales Tax Laws: A Complete Guide

“The State Government of Connecticut collects a 6.35% sales tax. ” 

What Does The Connecticut Sales Tax Laws Mean For Businesses?

It is slightly different in terms of the rates applicable in other parts of the country. 

The state government of Connecticut has not specified the maximum limit of this tax that local government bodies can charge. 

There is only one tax jurisdiction throughout the state. The state-wide average sales tax is 6.35%.

You will have to visit the official website of the Connecticut Department of Revenue Services to pay your share of sales tax. 

How Much Is The Sales Tax For Businesses In Connecticut?

6.35% of your overall revenue is the sales tax in Connecticut. 

The State Government of Connecticut does not collect any additional charges that local tax jurisdictions impose. 

There is only one tax jurisdiction and one sales tax throughout the state. However, there are some exceptions. The rate of sales tax applicable on different types of goods and services could vary. 

Sales Tax Rates In Connecticut:

There are several sales tax rates in this state. You must know about the one you have to pay. For example:

  • 1%
  • 2.99%
  • 4.50%
  • 7.75%
  • 9.35% 

All of these rates apply to the sale of different things or services. 

We suggest you visit the official website of the Department of Revenue Services, Connecticut, to find out about your tax liabilities,  the due date for tax payment, and other Connecticut Sales Tax Laws. 

Sales Tax Economic Sales Tax Threshold  Transaction Threshold
6.35% $100,000 $200 (must be both)

Read More: Delaware Sales Tax 2022 for Businesses: A Complete Guide

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Do You Need To Collect Connecticut Sales Tax For Your E-commerce Business?

To collect sales tax, all e-commerce businesses will need to fulfill the terms and conditions mentioned below.

  • An office space or place of business. 
  • The presence of an employee for more than two years in Connecticut. 
  • Goods in your warehouse.
  • Proof of ownership related to real or personal property. 
  • Merchandise delivery in Connecticut using a mode of transportation you own. 
  • One of the following in Connecticut for more than two days every year:
    • An independent contractor.
    • Representative in Connecticut. 

Fulfillment of these terms and conditions will ensure the nexus you want for collecting this tax for your eCommerce business.

What Types of Goods And Services Are Taxable Under Connecticut Sales Tax?

The Connecticut Sales Tax Laws for many types of people, professionals, and industries are different. Some are taxable, whereas some are exempt. 

List Of Exemptions

Take a look at the list of exemptions below:

  • Bicycles 
  • Helmets
  • Child car seats are sold.
  • Booster seats.
  • Sales of workbooks and college textbooks for higher education. 
  • Current flags of Connecticut and the United States. 
  • Firearm safety devices.
  • Food products for humans. 

Even nonprofit organizations, farmers, commercial fishermen, and taxpayer advocates are also eligible for exemptions. 

Many welfare programs are also eligible for exemptions. You will find the complete list of exemptions on the official website of the Department of Revenue Services, Connecticut.  

The following goods and services are taxable:

  • Services related to advertising business analysis, management, consulting, cable, satellite, and public relations. 
  • Services related to the traditional car wash, coin-operated car wash, computers, data processing, and contractarship. 
  •  Credit information and reporting services. 
  • Dry cleaning and laundry. 
  • Employment agencies. 
  • Agencies for personal services. 
  • Extermination services.
  • Aviation services. 
  • Services for furniture reupholstering and repair. 
  • Services for health and athletics

The list does not end here. You will have to visit the official website of the Department of Revenue, Connecticut to get the list of goods and services taxable as per the Connecticut sales tax laws 2002. 

How Often Do You Need To File Your Connecticut Sales Tax Return?

You can file your sales tax return either monthly or quarterly. This is something the Department of Revenue Services will decide for you. 

The Department of Revenue Services, Connecticut, notifies you in writing that you can file your tax returns annually if your liability did not exceed the amount of $1000 during the period of the previous 12 months. 

In case your sales tax liabilities exceed the amount of $4000 during the period of the previous 12 months, the Department of Revenue Services, Connecticut, notifies you to file your returns monthly. 

What Happens If You Do Not File Your Connecticut Sales Tax Return By The Due Date?

Do not make this mistake. Failure to file leads to hefty financial penalties and interest charges. 

We suggest you file your tax returns before the due date assigned by the Department of Revenue Services, Connecticut.

You file your return on the next business day if the due date falls on a weekend or a holiday. 

The later you file, the greater the fine and interest you pay. 

Let us help you! 

Experts from the financial, tax, and accounting industries are available on our team. 

From tax filing to exemption practices, we know everything to keep your business healthy from a financial perspective. 

Want Help With eCommerce Taxes And Accounting?

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