CT Connecticut State sales tax rates
STATEWIDE SALES TAX RATE
ECONOMIC SALES THRESHOLD
200 (must be both!)
Do you need to collect sales tax in Connecticut?
You’ll need to collect sales tax in Connecticut if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state. Economic nexus means passing a states’ economic threshold for total revenue or the number of transactions in that state.
Do you have physical nexus in Connecticut?
Connecticut considers a seller to have physical nexus if you have any of the following in the state:
- An office or place of business
- An employee present in the state for more than 2 days per year
- Goods in a warehouse
- Ownership of real or personal property
- Independent contractors or other representatives in Connecticut for more than 2 days per year
Do you have economic nexus in Connecticut?
Connecticut considers vendors who make more than $100,000 in gross receipts during the 12-month period in gross revenue AND 200 or more separate transactions on the previous calendar year’s sales to have economic nexus. This means the state considers these vendors obligated to collect sales tax from buyers in the state.
Is what you’re selling taxable?
Services in Connecticut are generally not taxable. However, if the service you provide includes creating or manufacturing a product, you may have to deal with the sales tax on products.
Tangible products are taxable in Connecticut, with a few exceptions. These exceptions include certain groceries, some clothing, safety gear like firearm locks, child car seats and bike helmets, compact fluorescent bulbs, college textbooks, medical equipment and certain motor vehicles.
And for one week a year, the state has an annual sales tax holiday that exempts clothing and footwear under $100.
Is SaaS taxable in Connecticut?
SaaS is taxable in Connecticut. SaaS for personal use is taxed at the full state rate, but SaaS for business use is only taxed at the rate of 1%.
How to Collect Connecticut Sales Tax If You Have a Location in Connecticut?
Connecticut is one of the few states that only has a statewide sales tax rate. There are no local sales tax rates, which means that collecting sales tax is easy. No matter if you live in Connecticut or out of state, charge a flat 6.35% in sales tax to your customers in Connecticut. The same goes if you have nexus in Connecticut because you sell on FBA.
The Connecticut state sales tax rate is 6.35%.
Should you collect sales tax on shipping charges in Connecticut?
The rule states that if the items that you are shipping are taxable, the shipping charges are also taxable. If you are shipping non-taxable items like food items, then the shipping is not taxable.
When are Returns Due?
When you file and pay Connecticut sales tax depends on two things: your assigned filing frequency and your state’s due dates.
How often will you file sales tax returns in Connecticut?
States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.
In Connecticut, you will be required to file and remit sales tax either monthly, quarterly, or annually.
Connecticut sales tax returns are always due the last day of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.