Sales Tax in Connecticut: A Complete Guide for Ecommerce Sellers

Connecticut has a flat 6.35% statewide rate with no local additions and a partial clothing exemption, items under $50 per piece are exempt, items at $50 or above are fully taxable. Connecticut also has a luxury tax rate of 7.75% on high-value clothing, jewelry, and certain other goods. The rate structure is straightforward (no local complexity), but the clothing exemption threshold and luxury rate add product-level taxability decisions that clothing and accessories sellers need to handle correctly.

Quick reference

Economic nexus

Connecticut’s OR threshold: $100,000 in gross sales OR 200 or more separate transactions into Connecticut in the current or prior calendar year. Either condition alone triggers registration.

Connecticut enacted its economic nexus rules effective December 1, 2018.

Physical nexus

Physical presence in Connecticut creates nexus without any threshold:

• Warehouse, office, or storage facility in Connecticut
• Amazon FBA inventory in Connecticut fulfillment centers
• Employees, agents, or independent contractors in Connecticut
• Sales representatives in Connecticut

Registration

Register through the Connecticut Taxpayer Service Center (TSC) at portal.ct.gov/DRS. Registration is free. Connecticut issues a Sales and Use Tax Permit.

Tax rates

State rate: 6.35% for most taxable sales

Luxury rate (7.75%): Applies to:

• Clothing and footwear priced over $1,000 per item
• Jewelry priced over $5,000
• Certain motor vehicles over $50,000

No local additions: Connecticut does not allow counties or municipalities to levy additional sales taxes. The state rate is the only rate for any Connecticut address.

What’s taxable

Generally taxable: Electronics, furniture, sporting goods, toys, most tangible personal property.

Generally exempt:

• Prescription medications
• Most food for human consumption (groceries)
• Clothing and footwear under $50 per item (see below)
• Residential utilities
• Agricultural supplies

Connecticut’s clothing exemption: Clothing and footwear items priced below $50 per item are fully exempt. Items at $50 or above are fully taxable at 6.35% (no partial exemption: the full price is taxable, not just the amount over $50). Items over $1,000 per piece are taxed at 7.75%.

This differs from New York (partial exemption above threshold) and Massachusetts (partial exemption above $175): Connecticut uses a cliff, under $50 is exempt, $50 and above is fully taxable.

Notable Connecticut rules:

• Digital products: Connecticut taxes specified digital products, including downloaded software, digital audio works, and digital audiovisual works. Connecticut’s digital product taxation is broadly applicable
• SaaS: Connecticut taxes remotely accessed software (SaaS) as a computer and data processing service
• Food: Connecticut broadly exempts food for home consumption. Prepared food, candy, and soft drinks are taxable

Shipping taxability

Connecticut taxes delivery charges when the shipped goods are taxable. When all goods in a shipment are exempt (including under-$50 clothing) the delivery charge is also exempt.

Marketplace facilitator rules

Connecticut enacted marketplace facilitator legislation effective December 1, 2018. Qualifying marketplace facilitators collect and remit Connecticut sales tax on marketplace-facilitated sales.

Remote sellers with no Connecticut physical nexus whose only Connecticut sales are through marketplace facilitators may not need to separately register. Sellers with Connecticut physical nexus must register regardless.

State-specific notes

Clothing exemption cliff, not a sliding scale: Connecticut’s $50 clothing threshold is a cliff exemption, not a partial one. A $49.99 shirt is fully exempt. A $50.00 shirt is fully taxable on its entire price. Apparel sellers need per-item price tracking and a clean cutoff at $50, not a calculation of excess above the threshold.

Luxury rate for high-end apparel: Clothing items over $1,000 per piece trigger the 7.75% luxury rate rather than the standard 6.35%. For sellers of premium or designer apparel, this means a third tax treatment: exempt (under $50), standard 6.35% ($50–$999.99), and luxury 7.75% ($1,000+).

SaaS taxability: Connecticut explicitly taxes SaaS as a computer and data processing service. Software and technology companies selling into Connecticut should confirm their products are configured as taxable.

Flat statewide rate: Connecticut’s lack of local additions simplifies rate lookup, any Connecticut address uses the same state rate.