Connecticut Sales Tax Basics

Connecticut's sales tax rate is 6.35 percent on most goods and services you buy in the state. This is the combined state rate; no Connecticut cities or towns add their own local sales tax on top of it. When you buy something at a store, the 6.35 percent is calculated on the purchase price and added to your total at checkout.

The tax applies to tangible items — things you can touch and take home — as well as certain services. Groceries for home use are exempt, which means you do not pay sales tax on food you cook yourself. But prepared food, restaurant meals, and takeout are taxed. The same rule applies to clothing under $110 per item; a single shirt under that price is tax-free, but a coat over $110 is taxed.

Key Takeaways

  • Connecticut's sales tax rate is 6.35 percent statewide, with no additional local taxes added by towns or cities.
  • Groceries for home cooking are tax-free, but restaurant meals, prepared foods, and takeout are taxed at the full rate.
  • Clothing items under $110 are exempt from sales tax; items $110 and above are taxed.
  • Services like haircuts, repairs, and professional work are generally taxed, but some services like medical care and legal information are not.
  • Online purchases from out-of-state sellers may or may not have sales tax collected depending on the seller's size and location.

What Is and Is Not Taxed in Connecticut

Beyond groceries and clothing under $110, several categories are exempt from Connecticut sales tax. Prescription medications are not taxed. Medical devices and equipment prescribed by a doctor are also exempt. Legal services, accounting services, and medical services do not carry sales tax. Newspapers and magazines are tax-free.

Items that are taxed include electronics, furniture, appliances, books (except newspapers and magazines), toys, and most personal care products. Haircuts and salon services are taxed. Car repairs and maintenance are taxed. Rental of hotel rooms is taxed at 15 percent — higher than the standard rate. If you rent a car, that rental is also taxed.

Digital products fall into a gray area. Streaming services like Netflix and music subscriptions are taxed. Downloaded software and apps are taxed. But digital newspapers and magazines may not be, depending on the format and how they are sold.

How Sales Tax Is Calculated at Checkout

The store calculates sales tax on the subtotal before any discounts or coupons are applied in most cases. If an item is on sale, the tax is calculated on the sale price, not the original price. If you use a coupon that reduces the price, the tax is usually calculated on the reduced price.

Some stores round the total to the nearest cent. If your tax comes to $5.634, the store rounds to $5.63. This rounding happens at the register, not on each individual item. The result is that your final total may be a few cents different from what you calculate by hand.

Sales Tax on Online and Out-of-State Purchases

If you order something online from a large retailer like Amazon, Walmart, or Target, Connecticut sales tax is usually collected at checkout, even though the item ships from out of state. These large sellers are required to collect sales tax in Connecticut because they have significant business activity in the state.

Smaller online sellers may not collect Connecticut sales tax. In that case, Connecticut law says you are supposed to pay "use tax" — which is the same rate as sales tax — when you receive the item. In practice, most people do not pay use tax on personal purchases, and the state does not pursue individual buyers. Businesses are expected to track and pay use tax on business purchases.

If you buy something in another state and bring it home to Connecticut, you do not owe sales tax in Connecticut. The tax was already paid where you bought it.

Who Collects and Where the Money Goes

Stores and businesses collect Connecticut sales tax and send it to the Connecticut Department of Revenue Services. The state uses this money to fund state government operations, including education, transportation, and social services. Businesses file sales tax returns monthly or quarterly, depending on how much tax they collect.

If a business collects sales tax from you but does not send it to the state, that is tax evasion, and the state pursues those cases. As a customer, you are not responsible if a business fails to pay the tax it collected from you.

Special Sales Tax Situations

Connecticut has a sales tax holiday for clothing and footwear in August. During this period, clothing and footwear items under $110 are tax-free, and items $110 and above are also tax-free. This holiday typically runs for one week in mid-August, though the exact dates change each year. Check the Department of Revenue Services website for the current year's dates.

Certain organizations are exempt from paying sales tax. Nonprofits, schools, and government agencies can buy items without paying sales tax if they provide a resale certificate or exemption certificate. This does not explore to individual shoppers.

Frequently Asked Questions

Do I pay sales tax on groceries in Connecticut?

No, groceries for home cooking are tax-free. This includes fruits, vegetables, meat, dairy, bread, and pantry staples. But prepared foods — deli items, rotisserie chicken, bakery items sold by weight, and anything you eat at the store — are taxed. Restaurant meals and takeout are always taxed.

Is clothing always tax-free in Connecticut?

Clothing under $110 per item is tax-free year-round. Items $110 and above are taxed. During the August clothing holiday, all clothing and footwear are tax-free, regardless of price. The $110 threshold applies to a single item, not your total purchase.

What if I buy something online from a small seller who did not collect Connecticut sales tax?

Connecticut law requires you to pay use tax on that purchase. Use tax is the same rate as sales tax — 6.35 percent. Most individual buyers do not report or pay use tax on personal purchases, and enforcement is limited to businesses. If you want to pay it, you can report it on your Connecticut income tax return.

Are services like haircuts and car repairs taxed in Connecticut?

Yes, most personal services are taxed. Haircuts, salon services, car repairs, appliance repairs, and plumbing work are all subject to the 6.35 percent sales tax. Medical services, legal services, and accounting services are not taxed.

Why is hotel tax higher than regular sales tax?

Connecticut charges 15 percent tax on hotel room rentals, which is much higher than the standard 6.35 percent sales tax. This higher rate applies to short-term lodging — typically stays of fewer than 30 days. The state uses this revenue for tourism promotion and hospitality-related programs.