Sales tax

Connecticut Sales Tax in 2026: 6.35% Rate, 7.35% Meals, Luxury Items and Digital Goods

Connecticut sales tax 2026: the 6.35% rate, 7.35% meals rate, 7.75% luxury rate, 1% computer services rate, digital goods, taxable services and the $100 permit.

Photo of Sumeet YadavEdited by Sumeet YadavFounder & editor, MSMETOOLS · fact-checked against official sources
Updated October 2026 Verified against official sources 11 October 2026 14 min read
Connecticut sales tax — MSMETOOLS guide cover
Contents (12)
  1. 1. Connecticut's rates and what each covers
  2. 2. The 7.35% meals rate
  3. 3. The 7.75% luxury rate
  4. 4. Digital goods, software and the 1% rate
  5. 5. Which services are taxable
  6. 6. Worked examples in dollars
  7. 7. Getting a Connecticut sales tax permit
  8. 8. Filing, due dates and penalties
  9. 9. Changes in 2026: school supplies and Sales Tax Free Week
  10. 10. Remote sellers, marketplaces and use tax
  11. 11. Common mistakes and how to fix them
  12. 12. What to do next

Connecticut is one of the few states where one sales tax rate applies everywhere: no city, county or district adds anything. That simplicity ends quickly, though. The state runs seven different rates, from 1% on computer services to 9.35% on short car rentals, plus a 7.35% meals rate and a 7.75% luxury rate, and it taxes a longer list of services than almost any neighbor. This guide is for retailers, restaurants, service businesses, software sellers and online sellers who need the 2026 rules: every rate and what it covers, how digital goods are really taxed, which services are taxable, the permit, filing and the changes that took effect in 2026. We checked every figure against the Department of Revenue Services (DRS) in October 2026.

Quick answer

Connecticut's sales tax rate is 6.35% statewide, with no local sales taxes. Meals and certain drinks pay 7.35%, and luxury items pay 7.75%: cars over $50,000, jewelry over $5,000, and clothing, shoes, handbags and watches over $1,000.

  • Digital goods are taxed at 6.35%; the 1% rate is for computer services and business-use software

  • Groceries are exempt; candy, soda and gum are not

  • Many services are taxable, from landscaping to management consulting

  • A permit costs $100; returns are due the last day of the following month

  • Hotels add a 15% room occupancy tax

Connecticut's rates and what each covers

The general sales and use tax rate is 6.35%. It applies to retail sales, leases and rentals of most goods, including digital goods, and to taxable services. Use tax at the same rates applies to goods and services bought for use in Connecticut without Connecticut tax, a common issue for businesses buying equipment online.

Because there are no local sales taxes, the rate on a given item is the same in Hartford, Stamford, New Haven and every small town. What changes the rate is the type of sale. DRS lists these rates:

Connecticut sales tax rates (2026)

1%

Applies to

Computer and data processing services; electronically accessed canned software bought by a business for business use

2.99%

Applies to

Boats, boat motors, boat trailers, dyed diesel marine fuel

4.5%

Applies to

Car sold to a nonresident active-duty service member stationed in Connecticut

6.35%

Applies to

General rate: most goods, digital goods and taxable services

7.35%

Applies to

Meals and certain beverages

7.75%

Applies to

Luxury cars, jewelry, clothing and accessories above set prices

9.35%

Applies to

Passenger car rentals of 30 days or less

Rooms are taxed separately. The room occupancy tax is 15% for hotels, motels, lodging houses and short-term home rentals, and 11% for bed and breakfasts, on stays of up to 30 consecutive days. From the 31st consecutive day of a guest's stay, the tax no longer applies.

The 7.35% meals rate

Since October 1, 2019, meals and certain beverages have carried an extra 1%, for a total of 7.35%. The higher rate applies to meals sold by eating establishments, caterers and grocery stores, and to liquor, soft drinks and other beverages of the kind served at bars and soda fountains.

DRS defines a meal as food that is furnished, prepared or served in a form and portion that makes it ready to eat right away. Sandwiches, grinders and wraps, hot food, individual frozen desserts and salads in small containers are meals. Bulk items such as whole loaves of bread, whole cakes and pies aren't meals. DRS's Policy Statement 2002(2), Sales and Use Taxes on Meals, has the detailed rules, and restaurants and grocery stores with prepared food counters should read it before setting up their registers.

Groceries are exempt. The food exemption covers food products for human consumption, but the return instructions say food doesn't include alcoholic beverages, soda, candy, gum, tobacco or food prepared for immediate consumption at or near the seller's location. So a grocery receipt in Connecticut typically has untaxed staples, taxed candy and soda, and any deli sandwiches at 7.35%.

Shops and sidewalks at Blue Back Square in West Hartford, Connecticut
Connecticut has no local sales taxes: a store in West Hartford charges the same 6.35% as one in any other town.· Image: Ragesoss (CC BY-SA 3.0)

The 7.75% luxury rate

Connecticut taxes certain high-priced items at 7.75%. The rate applies to most motor vehicles priced over $50,000; each piece of jewelry over $5,000; and each article of clothing or footwear, and each handbag, piece of luggage, umbrella, wallet or watch, over $1,000.

The thresholds work item by item. A $1,200 coat is taxed at 7.75%, but two $700 coats in one transaction are each taxed at 6.35%. Retailers report luxury sales in their own column on the return, so point-of-sale systems need a price-based rule for those product categories, not just a flat tax code.

Digital goods, software and the 1% rate

Many websites still say Connecticut taxes digital goods at 1%. That was true before October 1, 2019. Since then, DRS notice SN 2019(8) explains, digital goods, meaning audio works, visual works, audio-visual works, reading materials and ringtones that are accessed or transferred electronically, are taxed at the full 6.35%. That covers e-books, music downloads, streaming video and similar products sold to Connecticut customers. Unless a contract says otherwise, digital goods are presumed delivered into Connecticut when the customer's billing address is in Connecticut.

The 1% rate survives in three places. Computer and data processing services, including website services, are taxed at 1%. Canned or prewritten software that is accessed or transferred electronically, without any physical media, is taxed at 1% when a business buys it for use by the business, and the buyer must give the seller documentation to get the lower rate. Access to an online professional or academic research database is also taxed at 1%. Software sold to consumers, or delivered with a disk or other physical media, is taxed at 6.35%. Internet access services aren't taxable.

Digital products in Connecticut

Streaming video subscription

Buyer

Consumer

Rate

6.35%

E-book or music download

Buyer

Consumer

Rate

6.35%

Accounting software as a service

Buyer

Business, for business use

Rate

1%

Same software

Buyer

Consumer

Rate

6.35%

Boxed software on a disk

Buyer

Anyone

Rate

6.35%

Website hosting and data processing

Buyer

Anyone

Rate

1%

Which services are taxable

Connecticut taxes services more broadly than most states, and DRS's return instructions list dozens of them. Among the most common for small businesses are landscaping and horticulture; janitorial, window cleaning, maintenance, exterminating and swimming pool cleaning; motor vehicle repair and parking; repair of electronic devices, radios and TVs, furniture reupholstery and repair or maintenance of other tangible property, including warranty and service contracts; and locksmith services.

Business services are on the list too: business analysis, management consulting and public relations; employment and personnel agencies; credit reporting; private investigation, security patrol and armored car services; telephone answering; stenography; lobbying; and some advertising. Personal services include health and athletic clubs, including yoga studios, and miscellaneous personal services, though licensed massage therapists and electrologists are excluded. Interior design, storage space, limousine and livery services, and telecommunications are taxable as well.

Real property services split by the type of building. Services to existing commercial, industrial or income-producing property are taxable. For homes and other non-commercial property, renovation and repair services such as paving, painting or staining, wallpapering, roofing, siding and exterior sheet metal work are taxable. Legal, accounting, medical, engineering and most professional services remain untaxed.

Is the service taxable in Connecticut?

Weekly office cleaning

Taxable?

Yes

Rate

6.35%

Lawn mowing and landscaping

Taxable?

Yes

Rate

6.35%

Repainting a house exterior

Taxable?

Yes

Rate

6.35%

Management consulting

Taxable?

Yes

Rate

6.35%

Website hosting

Taxable?

Yes

Rate

1%

Tax return preparation

Taxable?

No

Rate

—

Exempt sales you'll see often

Several common exemptions show up on the return as deductions. Nonprescription drugs and medicines used in or on the body are exempt, though cosmetics, toothpaste, shampoo, mouthwash, soap and deodorant are not. Sales to the federal government, the State of Connecticut and its towns and agencies are exempt, as are sales to 501(c)(3) charities and religious organizations that give you a valid exemption certificate. College textbooks are exempt when sold to full-time or part-time students who show a valid student ID. Keep the certificate or other proof with your records for every exempt sale, because without it DRS treats the sale as taxable in an audit.

Worked examples in dollars

A television in Hartford. A $1,000 television costs $63.50 in tax at 6.35%, for a total of $1,063.50. The same purchase in Greenwich or Bridgeport has the same tax.

Lunch in New Haven. A $40 restaurant lunch is a meal, so tax at 7.35% is $2.94, for $42.94 in total.

A designer handbag. A $1,200 handbag is over the $1,000 threshold, so tax at 7.75% is $93. A $950 handbag pays 6.35%, or $60.33.

A $60,000 SUV. A dealer sells a $60,000 vehicle. Because it's over $50,000, the luxury rate of 7.75% applies, and tax is $4,650.

Software for a business. A small firm pays $6,000 a year for cloud accounting software for business use and gives the vendor the required documentation. Tax at 1% is $60. A consumer buying a $120 personal version pays 6.35%, or $7.62.

Lawn care. A landscaper bills a homeowner $500 a month. Landscaping is taxable, so the bill carries $31.75.

Try it — Connecticut sales tax on $1,000

Purchase Amount$1,000.00
State Tax (6.25%)$62.50
Local Tax (2%)$20.00
Combined Rate8.25%
Total Amount (Including Tax)$1,082.50
Open the full Sales Tax Calculator (PDF, save, compare)

Getting a Connecticut sales tax permit

You need a Sales and Use Tax Permit before selling taxable goods or services in Connecticut. Register online through myconneCT, DRS's tax portal. The permit fee is $100. If you have more than one location, you need to get and display a permit for each one, and DRS imposes civil penalties for failing to obtain or renew a permit. Hotels, motels, bed and breakfasts and anyone renting rooms or homes directly to guests for short stays also register for room occupancy tax.

Have your federal EIN (or Social Security number for a sole proprietor), legal business name and structure, owner and officer details, business locations and expected start date ready. Out-of-state sellers above the economic nexus thresholds register the same way.

Before your first Connecticut sale

0/6

Filing, due dates and penalties

You report on Form OS-114, Connecticut Sales and Use Tax Return, and you must file and pay electronically through myconneCT; annual filers have had to e-file since periods beginning January 1, 2022. Returns are due on or before the last day of the month after the end of the filing period. File even if you made no sales or all your sales were exempt.

DRS assigns your filing frequency. New businesses start as monthly filers, and DRS can change your status based on your liability. Its older new-business guidance put the lines at more than $4,000 a year for monthly filing and less than $1,000 for annual filing, with quarterly in between; DRS notifies you in writing of any change. Quarterly returns cover periods ending March 31, June 30, September 30 and December 31, and annual returns are due January 31.

Late payment costs 15% of the tax or $50, whichever is greater, and interest runs at 1% a month or part of a month from the due date. Failing to pay electronically when required brings a separate penalty of 10% of the payment, capped at $2,500 for a first offense and $10,000 for a second.

The Connecticut State Capitol in Hartford with its gold dome
2026 laws created a year-round exemption for nonelectronic school supplies and raised the Sales Tax Free Week limit to $300.· Image: jglazer75 (CC BY 2.0)

Changes in 2026: school supplies and Sales Tax Free Week

Two 2026 laws cut sales tax for families. Public Act 26-76 created a permanent exemption for nonelectronic school supplies from July 1, 2026. Pens, pencils, crayons, notebooks, paper, folders, binders and lunch boxes are now exempt every day of the year when bought for nonbusiness purposes. Laptops, tablets and other electronics don't qualify. Businesses buying the same supplies still owe tax, either to the seller or as use tax on their return, and the return now has a separate line for those business purchases.

Public Act 26-68 expanded the annual Sales Tax Free Week. In 2026 it ran from Sunday, August 16 to Saturday, August 22. The per-item limit for clothing and footwear rose from $100 to $300, and backpacks and cleated shoes were added. Athletic and protective clothing that isn't normally worn outside the activity was excluded. The exemption applied to online purchases shipped to Connecticut as well as store purchases.

Other recent changes are smaller: a $0.05-per-line fee on telecommunications access lines for the Firefighter Cancer Relief Fund is reported on the sales tax return by phone providers.

Connecticut sales tax changes to know

Oct 1, 2019

Meals rise to 7.35%; digital goods move from 1% to 6.35%

Jan 1, 2022

Annual filers must file and pay electronically

Jul 1, 2026

Nonelectronic school supplies exempt year-round (PA 26-76)

Aug 16–22, 2026

Sales Tax Free Week with a $300 per-item limit (PA 26-68)

Remote sellers, marketplaces and use tax

Connecticut's economic nexus test requires both conditions: an out-of-state retailer must register if it makes $100,000 and 200 sales into Connecticut. The measuring period is the 12 months ending September 30 before the monthly or quarterly period in question. A seller with $300,000 of sales spread over only 50 large orders doesn't meet the test; one with 500 orders worth $150,000 does. Marketplace facilitators collect on sales they facilitate, and an out-of-state seller that stores inventory in a facilitator's Connecticut warehouse must register regardless of the thresholds.

Connecticut businesses owe use tax on taxable goods and services bought without Connecticut tax, at the same rates as sales tax. Report it on your OS-114. Office equipment, furniture and software bought online are common sources, and so are taxable services bought from out-of-state providers, such as consulting or data processing.

Common mistakes and how to fix them

Charging 1% on digital goods to consumers. Consumer digital goods have been taxed at 6.35% since October 2019. The 1% rate is limited to computer services and business-use software with documentation.

Applying the luxury rate to the whole order. The $1,000 threshold applies per item. Several cheaper items in one sale stay at 6.35%.

Charging 6.35% on restaurant meals. Meals have been 7.35% since October 2019. Check that grocery delis and cafés also use the meals rate for ready-to-eat food.

Missing taxable services. Landscapers, cleaners, consultants and home renovation contractors moving from other states often don't realize their services are taxable here.

Taxing school supplies. Since July 1, 2026, nonelectronic school supplies bought for personal use are exempt. Update your product codes.

Official links

What to do next

Register each location on myconneCT, then set up tax codes for every rate you'll use: 6.35% general, 7.35% meals, 7.75% luxury items and 1% for qualifying computer services. Check DRS's taxable services list against what you sell, and put the last day of each month on your calendar. Use the sales tax calculator to check receipts, our guide to calculating sales tax for tax-included prices, and our use tax guide for purchases. Selling into neighboring states? Compare our New York, Massachusetts and New Jersey guides, and read about economic nexus.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

The general rate is 6.35%, and it's the same everywhere in the state because Connecticut has no local sales taxes. Meals and certain drinks pay 7.35%, luxury items 7.75%, computer and data processing services 1%, boats 2.99% and short car rentals 9.35%.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 11 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

  1. 1.Sales and Use Tax Information — Connecticut Department of Revenue Services · accessed 11 October 2026
  2. 2.Form O-88 (Rev. 07/26), Instructions for Form OS-114 — Connecticut Department of Revenue Services · accessed 11 October 2026
  3. 3.SN 2019(8): 2019 legislative changes affecting sales and use taxes — Connecticut Department of Revenue Services · accessed 11 October 2026
  4. 4.Room Occupancy Tax Information — Connecticut Department of Revenue Services · accessed 11 October 2026
  5. 5.Registering with DRS — Connecticut Department of Revenue Services · accessed 11 October 2026
  6. 6.Governor Lamont announces sales tax reductions — Office of the Governor of Connecticut · accessed 11 October 2026
  7. 7.Sales and Use Tax Overview companion guide — Connecticut Department of Revenue Services · accessed 11 October 2026
  8. 8.IP 2002(26): Q&A on Sales and Use Tax for a New Business — Connecticut Department of Revenue Services · accessed 11 October 2026
  9. 9.Connecticut expands its Sales Tax Free Week and creates a year-round school supplies exemption — Shipman & Goodwin LLP · accessed 11 October 2026

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