Connecticut's sales tax rate and what it covers

Connecticut charges a 6.35% sales tax on most retail purchases. This rate applies statewide and does not vary by town or county. The tax is added at the point of sale — when you buy something in a store, online, or by mail order.

Not everything is taxed at this rate. Groceries, prescription medications, and medical devices are exempt. Clothing and footwear under $50 per item are also exempt. Services — haircuts, repairs, consulting — are generally not taxed, though there are exceptions like dry cleaning and certain telecommunications services.

If you buy something out of state and have it shipped to Connecticut, you owe Connecticut sales tax on delivery. The same applies to online purchases from retailers without a physical presence in Connecticut; as of 2018, most large online retailers collect and remit this tax automatically.

Key Takeaways

  • Connecticut's sales tax is 6.35% on most retail goods, applied at checkout.
  • Groceries, prescription drugs, and clothing under $50 per item are exempt from sales tax.
  • Services like haircuts and repairs are not taxed, but dry cleaning and some utility services are.
  • You owe sales tax on items shipped to Connecticut from out of state, whether you buy in-person or online.
  • Businesses that sell taxable goods in Connecticut must register with the Department of Revenue Services and collect and remit sales tax monthly or quarterly.

Who collects and remits the tax

The retailer — the person or business selling the item — is responsible for collecting sales tax from you and sending it to the Connecticut Department of Revenue Services (DRS). You do not send the tax directly to the state.

Retailers must register for a sales tax permit before they start selling taxable goods. They file returns and pay the tax collected either monthly or quarterly, depending on the volume of sales. The DRS publishes a list of registered retailers, though most people never need to check it.

If you are a business owner selling goods in Connecticut, you must register even if you operate from home or sell only part-time. The registration is free, but failing to register and collect tax can result in penalties and interest.

Exemptions and special cases

Beyond groceries and clothing under $50, Connecticut exempts certain other items. Newspapers and magazines are not taxed. Fuel for heating is exempt. Certain medical equipment — wheelchairs, prosthetics, hearing aids — is exempt when prescribed by a doctor.

Resale certificates allow businesses to buy goods without paying sales tax if they plan to resell them. A retailer buying inventory from a wholesaler, for example, provides a resale certificate instead of paying tax. The tax is then collected when the retailer sells to the end customer.

Nonprofit organizations may be exempt from sales tax on certain purchases if they hold a valid exemption certificate from the DRS. The rules vary depending on the type of nonprofit and the type of purchase, so nonprofits should verify their status with the department.

How to find the tax on your receipt

On a store receipt, the sales tax appears as a separate line item, usually labeled "Tax" or "Sales Tax." It shows the amount in dollars and cents. The total at the bottom includes this tax.

Online receipts work the same way. If you buy from a retailer that collects Connecticut sales tax, the tax will be itemized before you see the final total. If the retailer does not collect it at checkout, you may owe it when you file your state income tax return, though this is rare for most consumers.

Sales tax on specific purchases

Restaurant meals are taxed at 6.35%. Prepared foods — sandwiches, rotisserie chicken, pizza — are taxed. Unprepared groceries you cook at home are not. The line between "prepared" and "unprepared" can be unclear; bakery items, deli items, and foods kept warm under heat lamps are usually considered prepared.

Motor vehicles are taxed at 6.35% on the purchase price. If you trade in an old vehicle, the tax applies to the net amount you pay, not the full price of the new one. Gasoline is taxed at the pump as part of the per-gallon price, separate from sales tax.

Digital goods — e-books, software, streaming subscriptions — are taxed in Connecticut. Streaming services like Netflix and music services like Spotify charge Connecticut residents the 6.35% tax.

What happens if sales tax is not collected

If a retailer fails to collect sales tax and you discover it, you are not liable for the unpaid tax. The retailer is responsible. However, if you knowingly buy from an unregistered seller to avoid tax, you may owe the tax yourself when you file your return.

The DRS conducts audits of retailers to may support they are collecting and remitting tax correctly. Penalties for non-compliance include interest on unpaid tax, plus civil penalties ranging from 10% to 25% of the underpaid amount, depending on whether the failure was negligent or intentional.

Frequently Asked Questions

Is clothing always exempt from Connecticut sales tax?

No. Only clothing and footwear under $50 per item are exempt. A $60 pair of shoes is taxed; a $40 pair is not. The exemption applies to the individual item, not your total purchase.

Do I owe sales tax on items I buy from someone's garage sale or Facebook Marketplace?

Technically, yes — the buyer owes sales tax on personal sales in Connecticut. In practice, the state does not pursue individuals for tax on one-off personal transactions. If you are selling items regularly, you should register as a retailer and collect tax.

What if an online retailer did not charge me Connecticut sales tax?

Large retailers are required to collect it. If a smaller retailer did not, you may owe the tax when you file your state income tax return, though enforcement for individual consumers is minimal. You can report the retailer to the DRS if you believe they are not complying.

Are services like haircuts and car repairs taxed in Connecticut?

Most services are not taxed. Haircuts, auto repair, and plumbing are exempt. Dry cleaning is taxed. Telecommunications services — cell phone bills, internet — are taxed. When in doubt, ask the business or check your receipt.

Do I pay sales tax on items shipped to Connecticut from Amazon or other online retailers?

Yes. Amazon and most major online retailers collect Connecticut sales tax at checkout for delivery to Connecticut addresses. Smaller retailers may not; if tax was not charged, you may owe it on your tax return.