Sales Tax Rules
Connecticut imposes a state sales tax rate of 6.35%, with a maximum combined rate (state plus local) of 6.35% when local taxes are added. Economic nexus is triggered at $100,000 in sales or 200 transactions — meaning out-of-state businesses that exceed this threshold must collect and remit Connecticut sales tax. SaaS and digital software products are taxable in Connecticut. Groceries are exempt from state sales tax.
SaaS Tax Details
SaaS for business use is taxed at 1%; personal use is 6.35%.
Grocery Details
Groceries are exempt; meals and beverages are 7.35%.
What is the sales tax rate in Connecticut?
Connecticut's state sales tax rate is 6.35%. When local taxes are added, the maximum combined rate can reach 6.35%. The actual rate you pay depends on the county and city where the purchase is made.
What is the economic nexus threshold in Connecticut?
Connecticut requires out-of-state businesses to collect sales tax once they exceed $100,000 in sales or 200 transactions in a calendar year. Once nexus is established, the business must register, collect, and remit Connecticut sales tax.
Is SaaS taxable in Connecticut?
Yes. Connecticut considers SaaS (Software as a Service) taxable. Businesses selling SaaS products to Connecticut customers must collect sales tax. SaaS for business use is taxed at 1%; personal use is 6.35%.
Are groceries taxed in Connecticut?
Groceries are generally exempt from sales tax in Connecticut. Groceries are exempt; meals and beverages are 7.35%.
Are digital goods taxable in Connecticut?
Yes. Connecticut taxes digital goods including downloaded software, music, movies, and e-books. Businesses selling digital products to Connecticut customers should collect sales tax.
Are clothing items exempt from sales tax in Connecticut?
Yes. Clothing is generally exempt from sales tax in Connecticut, which can provide meaningful savings for residents on everyday purchases.
How often do I need to file sales tax in Connecticut?
Connecticut requires sales tax filing on a Monthly, Quarterly, or Annual. Online filing is available through the official Department of Revenue portal.
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Official Source
Connecticut Department of Revenue
Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.