Connecticut Sales Tax: 6.35% General Rate, 7.35% Meals and 7.75% Luxury Items
Connecticut Sales Tax: 6.35% General Rate, 7.35% Meals and 7.75% Luxury Items
Informational only: This guide explains Connecticut sales tax rules in general terms. It is not legal or tax advice. Rates, taxability rules and filing requirements can change, so confirm anything that affects your money with the Connecticut Department of Revenue Services (DRS) and a qualified CPA or attorney before you act on it.
If you sell goods or taxable services in Connecticut, you collect sales tax from your customers and remit it to the state. The rules are simpler than in many states. Connecticut uses one statewide rate structure, and DRS states there are no additional local sales taxes. A sale in Hartford and a sale in Greenwich follow the same rate table. The connecticut sales tax rate you charge depends on what you are selling, not on which town your customer lives in.
The main rates are 6.35% on most goods and taxable services, 7.35% on meals and certain beverages, and 7.75% on certain luxury items. A few other categories carry their own rates. This guide walks through each one, shows how to calculate the tax, explains the permit you need before your first taxable sale, and lists the questions to confirm with DRS.
Connecticut Sales Tax Rates at a Glance
| Category | Rate | Notes |
|---|---|---|
| Most goods and taxable services | 6.35% | Statewide rate; DRS reports no additional local sales taxes |
| Meals and certain beverages | 7.35% | Higher than the general rate |
| Most vehicles over $50,000 | 7.75% | Confirm how the threshold applies with DRS |
| Jewelry over $5,000 | 7.75% | Confirm how the threshold applies with DRS |
| Clothing, footwear, handbags, luggage, umbrellas, wallets or watches over $1,000 | 7.75% | Confirm how the threshold applies with DRS |
| Computer and data processing services; business-use canned software | 1% | Reduced rate for these services and software |
| Passenger car rentals of 30 days or less | 9.35% | Rental-specific rate |
The thresholds cause the most confusion. Whether the higher rate applies to the full price or only to the part above the threshold is not settled in this guide. Confirm that method with DRS before you set up your point-of-sale system or price a high-value sale.
How to Calculate Connecticut Sales Tax on a Sale
Multiply the taxable price by the correct rate. Two examples show the math:
- General goods: A $100 taxable sale at 6.35% carries $6.35 in tax, for a total of $106.35.
- Meals: A $40 taxable meal at 7.35% carries $2.94 in tax, for a total of $42.94.
Apply the tax only to the taxable portion of an invoice. If one bill combines a taxable product with a service that is not on the state's taxable list, show the lines separately so each one carries the right treatment.
The 6.35% General Rate
The 6.35% rate is the base rate you will use most often. It applies to most goods sold at retail and to services that Connecticut has listed as taxable. Anything outside the taxable categories is generally not subject to sales tax, but exemptions come with conditions. Some sales are exempt only when the buyer gives you a valid exemption document. Keep that document with your sales records, and do not rely on a verbal assurance from a customer.
Connecticut Sales Tax on Services
People searching for connecticut sales tax on services usually want one clear answer, and the honest answer is that Connecticut does not tax services in general. Only services on the state's list are taxable. If a service is not on that list, no sales tax applies to the fee for it. The list is the authority that settles the question, and DRS maintains it. Check the DRS service list before you quote a price or send an invoice to a client.
Three service-related rules are worth knowing:
- Computer and data processing services, and business-use canned software, are taxed at 1%.
- Passenger car rentals of 30 days or less carry a 9.35% rate.
- Other taxable services generally follow the 6.35% general rate. Confirm the treatment of your specific service on the DRS list.
Mixed invoices are where audits tend to focus. If you bundle a taxable item with a nontaxable service, itemize each line and keep a record of how you priced it. If you are unsure how a bundled offer should be taxed, check with DRS or a CPA before the invoice goes out.
Meals and Beverages at 7.35%
Meals and certain beverages are taxed at 7.35%, which is higher than the general rate. If you run a restaurant, caterer, food truck or any business that sells prepared food, your point-of-sale system must apply this rate to those items. Confirm with DRS which beverages count as taxable and where the line falls between taxable meals and exempt food. That line is one of the most common compliance questions for food businesses.
Luxury Items at 7.75%
A 7.75% rate applies to three groups of higher-priced goods:
- Most vehicles priced over $50,000
- Jewelry priced over $5,000
- Clothing, footwear, handbags, luggage, umbrellas, wallets or watches priced over $1,000
Dealers, jewelers and boutiques need a written rule for how they test each threshold and how the higher rate is applied to a sale that crosses it. This guide does not state that method as settled. Confirm it with DRS, and have your staff follow the same rule on every sale so your records match.
Who Needs a Sales and Use Tax Permit
If you sell taxable goods or services in Connecticut, you need a Sales and Use Tax Permit from DRS before you make taxable sales. The permit costs $100 to register on myconneCT, the state's online tax system. You must display the permit at each location where you sell.
The permit is a tax registration, not a business license. Connecticut has no general state business license. Registering your LLC or corporation with the Connecticut Secretary of the State through Business.CT.gov is a separate step, and it does not give you a sales tax permit.
Selling without a permit is expensive. The penalty is $250 for the first day and $100 for each day after that. Even if you had no sales in a filing period, you still file Form OS-114 on myconneCT. Confirm with DRS which filing period applies to your business when you register.
If you operate under a name different from your legal name, that is a separate filing. A Trade Name Certificate is filed with the town clerk where the business is primarily transacted, at a $20 fee. It is not filed with the state, and it is not the same as the sales tax permit.
No Local Sales Tax Layer
Some states add city or county sales taxes on top of the state rate, which means a separate rate table for every locality. Connecticut is different. DRS states there are no additional local sales taxes, so the rates in this guide apply throughout the state. Connecticut also has no county government, so there is no county sales tax to look up.
Local zoning, health and occupancy approvals may still apply to your location. Those approvals come from your town or city, or from a local health department or district. They do not change the sales tax rate you charge.
A Practical Connecticut Sales Tax Checklist
- List every product and service you sell, and check each one against the DRS service list and goods rules.
- Assign each item to its correct rate: 6.35%, 7.35%, 7.75%, 1% or 9.35% for passenger car rentals.
- Test high-value vehicles, jewelry and apparel against the $50,000, $5,000 and $1,000 thresholds, and confirm the threshold method with DRS.
- Register for the Sales and Use Tax Permit on myconneCT before your first taxable sale, and display it at each location.
- File Form OS-114 on myconneCT for every required period, including periods with no sales.
- Keep invoices, exemption documents and rate records together so you can produce them if DRS asks.
When to Get Professional Help
Sales tax is manageable for a single-location retailer that sells clearly taxable goods. It becomes complicated quickly with mixed invoices, bundled services, high-value vehicles or jewelry, or sales to buyers in other states. A Connecticut CPA or a sales tax attorney can review your product and service list before you open for business. DRS also publishes its tax information online, and you can use those pages to check specific rate questions before you file.
Official Resources
- Connecticut Department of Revenue Services: https://portal.ct.gov/drs
- DRS sales tax information and permit details: https://portal.ct.gov/drs/sales-tax/tax-information
- Connecticut Secretary of the State, Business Services Division: https://portal.ct.gov/sots/business-services/bsd
- Connecticut Small Business Development Center: https://ctsbdc.uconn.edu/
Reminder: This guide is informational and is not legal or tax advice. The rates and rules described here are based on DRS guidance available in 2026 and can change. Confirm current figures, taxability questions and filing requirements with DRS, and consult a qualified CPA or attorney for your situation.