Navigating Sales Tax in Connecticut

Q: Are digital products taxable in Colorado?

Yes. Digital goods such as music, video, and e-books are taxable as tangible personal property, regardless of delivery method.

Q: When do I have to start collecting tax after exceeding economic nexus?

A retailer must start collecting sales tax by the first day of the first month at least 90 days after exceeding $100,000 in Colorado sales during the current year.

Q: Are services taxable in Colorado?

The state does not impose sales tax on services, but some home-rule cities may tax certain services, so sellers must check city requirements.

This guide provides an overview of Sales Tax in Connecticut, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Connecticut.

Last Updated: May 2025

1%

is the luxury tax rate Connecticut once imposed on expensive goods in the early 1990s.

Connecticut at a glance.

State

Connecticut

Tax Rate Range

1% - 7.75%

Economic Nexus Threshold

$100,000 in gross sales or 200 transactions

Filling Deadlines

Form OS-114 is due on or before the last day of the month following the end of each filing period.

Is SaaS Taxable?

Yes

Base Tax Rate:

6.35%

When should your
business collect Sales
Tax in Connecticut?

A business must begin collecting Connecticut sales tax once it establishes either physical or economic nexus in the state. Once nexus is established, registration is required, and tax must be collected starting immediately upon obtaining the temporary permit, which is issued at the end of the online registration process.

Connecticut physical sales tax nexus.

Connecticut considers you to have physical nexus when you have any in-state presence.

Sales tax physical nexus checklist for Connecticut

The following conditions might establish a physical nexus in Colorado:

A retail location or office in the state

Inventory stored in Connecticut

Employees or representatives operating in Connecticut

Attending trade shows in Connecticut

Owning or leasing property in the state

Which services are taxable in Connecticut?

Computer and data processing services are taxable at 1%, which includes SaaS.

Dry cleaning services are taxed via the dry cleaning surcharge.

Room occupancy services (hotel, B&B) are taxable under the Room Occupancy tax.

Connecticut taxes specific services rather than services generally, with a focus on computer/data processing and certain surcharges.

Connecticut sales tax information:

Connecticut uses destination-based sourcing, applying the appropriate state rate or alternate rate (6.35%, 7.75%, 7.35%, or 1%) to the taxable sale amount. No local taxes apply.

Connecticut taxes tangible personal property, prepared food, luxury goods, digital/data processing services such as SaaS, and shipping or handling charges when they relate to taxable products.

Register online through myconneCT using the REG-1 application; a temporary permit is available to print immediately, and a $100 non-refundable registration fee applies.

Once registered and issued a temporary permit, businesses must collect the correct Connecticut state rate or alternate rate on taxable sales and remit the tax electronically through myconneCT. Shipping and handling must be treated as taxable if the underlying products are taxable.

Sales Tax return due dates explained.

Connecticut assigns filing frequency based on prior-year tax liability: monthly for over $4,000, quarterly for $1,000–$4,000, and annually for less than $1,000. All returns must be filed electronically using Form OS-114 through myconneCT and are due on the last day of the month following the reporting period. Even if no sales occur, a return must be filed, and no prepayment schedule is required.

FAQs

Are digital products taxable in Colorado?

Yes. Digital goods such as music, video, and e-books are taxable as tangible personal property, regardless of delivery method.

When do I have to start collecting tax after exceeding economic nexus?

A retailer must start collecting sales tax by the first day of the first month at least 90 days after exceeding $100,000 in Colorado sales during the current year.

Are services taxable in Colorado?

The state does not impose sales tax on services, but some home-rule cities may tax certain services, so sellers must check city requirements.

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Navigating Sales Tax in Connecticut

This guide provides an overview of Sales Tax in Connecticut, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Connecticut.

Last Updated: May 2025

1%

is the luxury tax rate Connecticut once imposed on expensive goods in the early 1990s.

Connecticut at a glance.

State

Connecticut

Tax Rate Range

1% - 7.75%

Economic Nexus Threshold

$100,000 in gross sales or 200 transactions

Filling Deadlines

Form OS-114 is due on or before the last day of the month following the end of each filing period.

Is SaaS Taxable?

Yes

Base Tax Rate:

6.35%

When should your
business collect Sales
Tax in Connecticut?

A business must begin collecting Connecticut sales tax once it establishes either physical or economic nexus in the state. Once nexus is established, registration is required, and tax must be collected starting immediately upon obtaining the temporary permit, which is issued at the end of the online registration process.

Connecticut physical sales tax nexus.

Connecticut considers you to have physical nexus when you have any in-state presence.

Sales tax physical nexus checklist for Connecticut

The following conditions might establish a physical nexus in Colorado:

A retail location or office in the state

Inventory stored in Connecticut

Employees or representatives operating in Connecticut

Attending trade shows in Connecticut

Owning or leasing property in the state

Which services are taxable in Connecticut?

Connecticut taxes specific services rather than services generally, with a focus on computer/data processing and certain surcharges.

Computer and data processing services are taxable at 1%, which includes SaaS.

Dry cleaning services are taxed via the dry cleaning surcharge.

Room occupancy services (hotel, B&B) are taxable under the Room Occupancy tax.

Connecticut sales tax information:

Connecticut uses destination-based sourcing, applying the appropriate state rate or alternate rate (6.35%, 7.75%, 7.35%, or 1%) to the taxable sale amount. No local taxes apply.

Connecticut taxes tangible personal property, prepared food, luxury goods, digital/data processing services such as SaaS, and shipping or handling charges when they relate to taxable products.

Register online through myconneCT using the REG-1 application; a temporary permit is available to print immediately, and a $100 non-refundable registration fee applies.

Once registered and issued a temporary permit, businesses must collect the correct Connecticut state rate or alternate rate on taxable sales and remit the tax electronically through myconneCT. Shipping and handling must be treated as taxable if the underlying products are taxable.

Sales Tax return due dates explained.

Connecticut assigns filing frequency based on prior-year tax liability: monthly for over $4,000, quarterly for $1,000–$4,000, and annually for less than $1,000. All returns must be filed electronically using Form OS-114 through myconneCT and are due on the last day of the month following the reporting period. Even if no sales occur, a return must be filed, and no prepayment schedule is required.

FAQs

Are digital products taxable in Colorado?

Yes. Digital goods such as music, video, and e-books are taxable as tangible personal property, regardless of delivery method.

When do I have to start collecting tax after exceeding economic nexus?

A retailer must start collecting sales tax by the first day of the first month at least 90 days after exceeding $100,000 in Colorado sales during the current year.

Are services taxable in Colorado?

The state does not impose sales tax on services, but some home-rule cities may tax certain services, so sellers must check city requirements.

Related content.

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12 May 2026

The Myth of Marketplace Protection: What Sellers Misunderstand

The Myth of Marketplace Protection: What Sellers Misunderstand When marketplace facilitator laws first came into effect across US states following the 2018 South Dakota v. Wayfair decision, many sellers breathed a sigh of relief. If platforms like Amazon, Shopify, or Etsy were now legally required to collect and remit sales tax on behalf of third-party sellers, […]

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6 May 2026

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Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

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Read More

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16 Apr 2026

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15 Apr 2026

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Navigating Sales Tax in Connecticut

1%

State

Connecticut

Tax Rate Range

1% - 7.75%

Economic Nexus Threshold

$100,000 in gross sales or 200 transactions

Filling Deadlines

Form OS-114 is due on or before the last day of the month following the end of each filing period.

Is SaaS Taxable?

Yes

Base Tax Rate:

6.35%

When should yourbusiness collect SalesTax in Connecticut?

Connecticut physical sales tax nexus.

Connecticut considers you to have physical nexus when you have any in-state presence.

Sales tax physical nexus checklist for Connecticut

Which services are taxable in Connecticut?

Connecticut uses destination-based sourcing, applying the appropriate state rate or alternate rate (6.35%, 7.75%, 7.35%, or 1%) to the taxable sale amount. No local taxes apply.

Connecticut taxes tangible personal property, prepared food, luxury goods, digital/data processing services such as SaaS, and shipping or handling charges when they relate to taxable products.

FAQs

Related content.

The Myth of Marketplace Protection: What Sellers Misunderstand

How the VAT IT and Brex Integration Streamlines VAT Reclaim

Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

Economic Nexus Explained (2026 Update): What European & UK Companies Need to Know After Their First Years Selling in the U.S.

6 Best US Sales Tax Compliance Solutions in 2026: An Honest Comparison

What is Peppol and How Does It Affect Your Business When e-Invoicing

Top Global VAT Solutions in 2026

9 Best e-Invoicing Compliance Solutions

e-Invoicing Requirements for B2B Sellers: What You Need to Have in Place

Quarterly VAT Return Dates: How to Stay Compliant All Year

Navigating Sales Tax in Connecticut

1%

State

Connecticut

Tax Rate Range

1% - 7.75%

Economic Nexus Threshold

$100,000 in gross sales or 200 transactions

Filling Deadlines

Form OS-114 is due on or before the last day of the month following the end of each filing period.

Is SaaS Taxable?

Yes

Base Tax Rate:

6.35%

When should yourbusiness collect SalesTax in Connecticut?

Connecticut physical sales tax nexus.

Connecticut considers you to have physical nexus when you have any in-state presence.

Sales tax physical nexus checklist for Connecticut

The following conditions might establish a physical nexus in Colorado:

Which services are taxable in Connecticut?

Connecticut taxes specific services rather than services generally, with a focus on computer/data processing and certain surcharges.

Connecticut uses destination-based sourcing, applying the appropriate state rate or alternate rate (6.35%, 7.75%, 7.35%, or 1%) to the taxable sale amount. No local taxes apply.

Connecticut taxes tangible personal property, prepared food, luxury goods, digital/data processing services such as SaaS, and shipping or handling charges when they relate to taxable products.

FAQs

Related content.

The Myth of Marketplace Protection: What Sellers Misunderstand

How the VAT IT and Brex Integration Streamlines VAT Reclaim

Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

Economic Nexus Explained (2026 Update): What European & UK Companies Need to Know After Their First Years Selling in the U.S.

6 Best US Sales Tax Compliance Solutions in 2026: An Honest Comparison

What is Peppol and How Does It Affect Your Business When e-Invoicing

Top Global VAT Solutions in 2026

9 Best e-Invoicing Compliance Solutions

e-Invoicing Requirements for B2B Sellers: What You Need to Have in Place

Quarterly VAT Return Dates: How to Stay Compliant All Year

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When should your
business collect Sales
Tax in Connecticut?

When should your
business collect Sales
Tax in Connecticut?