Connecticut sales tax for online sellers: nexus, permit and filing

What is the Connecticut sales tax rate?

The rate is 6.35% statewide, and Connecticut has no local sales taxes, so one rate applies to every delivery address. A higher rate of 7.75% applies to certain luxury items, such as expensive jewelry and clothing. Connecticut also taxes digital goods and software delivered online, with a reduced 1% rate for some business purchases.

When does an online seller have to collect in Connecticut?

You must collect if you have a physical presence in Connecticut, such as staff, an office or inventory, or if during the 12 months ending September 30 you had both gross receipts of $100,000 or more and 200 or more retail sales into Connecticut. A seller who meets both tests starts collecting from October 1. Some guides describe the period as a calendar year, but the Department of Revenue Services measures it to September 30. Sales made through marketplaces are generally included in the gross receipts figure.

How nexus works in general is covered in physical vs economic nexus and economic nexus explained.

What if you sell on Amazon, eBay or Etsy?

Connecticut requires marketplace facilitators to collect and remit sales tax on the sales they facilitate, so you do not collect on those orders. Your own website and other direct channels remain your responsibility. See marketplace facilitator laws.

How do you register?

Register online through myconneCT, the Department of Revenue Services' portal, for a sales and use tax permit. Connecticut charges a $100 registration fee, which most states do not. The permit must be in place before you charge tax, and it is renewed periodically at no further charge.

What are the steps once you have nexus?

1. Confirm nexus

   Check your presence and your sales into Connecticut against its threshold.

2. Register before collecting

   With the Connecticut tax agency, as set out above.

3. Set up your store

   Charge the correct combined rate for each delivery address and product.

4. File and pay

   On the schedule Connecticut assigns, including zero returns where required.

How are returns filed?

Returns are filed through myconneCT and are due by the last day of the month after the period, later than the 20th used by most states. The Department assigns monthly, quarterly or annual filing based on the tax you collect. A return is required for every period, even with no sales.

See how to file a sales tax return.

Why does the word "and" matter?

In most states with two tests, either one is enough. In Connecticut a seller needs both, so a business with high-value orders can pass $100,000 without creating economic nexus. Physical presence still creates nexus whatever the figures.

When should you check the threshold?

Each year at the end of September. Add up gross receipts and count retail sales into Connecticut from October 1 of the previous year to September 30. If both tests are met, register so that collection starts on October 1, and keep the working papers in case the Department asks how you reached your conclusion.

What else should sellers know?

• Sellers outside the US: the same rules apply wherever the business is based. See selling on Amazon US as a non-resident.
• Late registration: tax you should have collected becomes your own debt. See voluntary disclosure agreements and collected but not remitted.
• Records: keep sales by delivery address, tax collected and any certificates. See exemption certificates and sales tax audits.
• Stopping: returns stay due until the account is closed. See filing frequency and cancelling a sales tax permit.
• Store settings: switch on collection only once you are registered. See Shopify sales tax setup.

This guide is general information. It is not tax or legal advice for your situation.