Connecticut Sales Tax and Invoicing Rules for 2026

TL;DR: Connecticut charges a 6.35% state sales tax with no local add-ons, plus a 7.75% luxury tax on certain items. Economic nexus kicks in at $100,000 in sales and 200 transactions. Most clothing under $50 is exempt, and invoices must itemize tax separately.

Connecticut's sales tax system features a uniform statewide rate with no local taxes, but it introduces complexity through multiple rate tiers for luxury goods and technology services. Sellers need to understand which rate applies to each product category. This guide covers Connecticut's rates, nexus rules, invoice requirements, exemptions, filing deadlines, and penalties for 2026.

State sales tax rate

Connecticut imposes a 6.35% state sales and use tax on most retail sales of tangible personal property and taxable services. There are no local sales taxes in Connecticut, so the rate is uniform statewide. A higher rate of 7.75% applies to certain luxury goods, including motor vehicles over $50,000 and jewelry over $5,000. Computer and data processing services are taxed at a reduced rate of 1%.

The uniform statewide rate simplifies compliance, but sellers must be aware of the different rate tiers. Invoices for luxury items should reflect the 7.75% rate, and technology service providers should apply the 1% rate for qualifying services.

Nexus rules

Physical nexus is created by having a place of business, employees, agents, or inventory in Connecticut. Regularly attending trade shows or craft fairs can also establish nexus. Storing goods in Connecticut fulfillment centers triggers nexus as well.

Economic nexus requires remote sellers to collect Connecticut sales tax if they have both $100,000 or more in gross revenue from sales and 200 or more retail transactions delivered into Connecticut during the preceding 12-month period. Both thresholds must be met simultaneously. Marketplace facilitators must collect and remit on behalf of marketplace sellers once they meet the same thresholds. Connecticut is notable for requiring both conditions rather than an either/or test.

What must appear on invoices

The Connecticut Department of Revenue Services expects invoices and receipts to include:

• Seller's name, address, and Connecticut sales tax registration number
• Buyer's name and address
• Date of sale
• Description of each item or service sold
• Sale price before tax
• Sales tax amount shown separately from the selling price
• Applicable tax rate (6.35%, 7.75%, or 1% for computer services)
• Total amount due including tax
• Exemption certificate number for exempt sales

Connecticut law requires that if tax is included in the price, it must be disclosed to the buyer. Separately stating the tax on each invoice is the standard practice. Sellers dealing in items at multiple rate tiers should clearly indicate which rate applies to each line item.

Exemptions and special cases

Connecticut provides several notable exemptions:

• Clothing and footwear priced under $50 per item are exempt
• Groceries (unprepared food) are exempt
• Prescription drugs and most medical devices
• Newspapers and certain periodicals
• Sales to the federal government, Connecticut state government, and qualifying nonprofits
• Manufacturing machinery and materials used directly in production
• College textbooks purchased by students

Clothing items priced at $50 or above are taxable at the full 6.35% rate. Items over $1,000 are subject to the 7.75% luxury rate. Digital goods, including e-books and downloaded software, are taxable at 6.35%. SaaS is generally taxable in Connecticut at the 1% computer services rate. Prepared food is taxable at the standard 6.35% rate.

Filing frequency and deadlines

Connecticut requires electronic filing through myconneCT, the state's online tax portal. There is no vendor discount for timely filing in Connecticut. Returns must be filed even for periods with zero tax collected. Large taxpayers may be required to make additional prepayments during the month.

Penalties for non-compliance

A penalty of 15% of the unpaid tax or $50 (whichever is greater) applies for late filing. Interest accrues at 1% per month on unpaid balances. Failure to register and collect when required results in personal liability for the responsible officers of the business. Repeated non-compliance can result in permit revocation and referral for criminal prosecution. The Department of Revenue Services may also require a surety bond before reissuing a permit.

Frequently asked questions

Is clothing taxable in Connecticut? Clothing and footwear items priced under $50 are exempt from sales tax. Items priced at $50 or more are taxable at the standard 6.35% rate. Items over $1,000 are taxed at the luxury rate of 7.75%. This per-item threshold applies to each article individually, not to the total purchase amount.

Does Connecticut tax SaaS and digital products? Yes. Connecticut taxes computer and data processing services (including SaaS) at a reduced rate of 1%. Digital goods such as downloaded music, e-books, and software are taxable at the standard 6.35% rate. The distinction between which rate applies depends on whether the product is a "service" or a "good."

What is the luxury tax in Connecticut? Connecticut applies a higher 7.75% rate to specific luxury items including motor vehicles priced above $50,000, jewelry over $5,000, and certain clothing items over $1,000. This rate replaces (not adds to) the standard 6.35% rate for qualifying items. The luxury rate is designed as a progressive consumption tax measure.

Are shipping charges taxable in Connecticut? Yes. Connecticut considers delivery charges taxable when they relate to the sale of taxable goods, regardless of whether shipping is separately stated on the invoice. If you ship only exempt items, the shipping charge is exempt as well.