Connecticut's Sales Tax Rate and What It Covers

Connecticut charges a 6.35% sales tax on most retail purchases. This is the statewide rate that applies when you buy tangible goods — things you can touch and take home — at stores, restaurants, and online retailers shipping to Connecticut addresses.

The tax is calculated on the sale price before you pay. If you buy an item for $100, you add $6.35 in sales tax, for a total of $106.35. Retailers are required to collect this tax at the point of sale and send it to the Connecticut Department of Revenue Services.

Some purchases are taxed at a different rate or not taxed at all. Groceries, prescription medications, and medical devices are exempt. Clothing and footwear under $110 per item are also exempt — if a single shirt costs $115, the full amount is taxed, but a $95 shirt is not. This exemption applies to the individual item, not your total purchase.

Key Takeaways

  • Connecticut's statewide sales tax is 6.35% on most retail goods and prepared food.
  • Groceries, prescription drugs, and clothing under $110 per item are not subject to sales tax.
  • Prepared food and restaurant meals are taxed, but unprepared groceries are not.
  • Online purchases from out-of-state retailers are subject to Connecticut sales tax if the retailer has a physical presence or meets economic thresholds in the state.

What Is and Isn't Taxed in Connecticut

The line between taxed and untaxed purchases can be confusing because it depends on what the item is, not just where you buy it. A loaf of bread from a grocery store is not taxed. A sandwich from a deli counter is taxed because it is prepared food. A rotisserie chicken from the grocery store's prepared foods section is also taxed.

Clothing and footwear follow the $110 per-item rule. This means a pair of jeans for $95 is not taxed, but the same jeans for $115 are fully taxed. Accessories like belts, hats, and gloves under $110 are also exempt. However, if you buy a coat for $200, the entire $200 is subject to tax because the single item exceeds the threshold.

Services are generally not taxed in Connecticut, with some exceptions. Haircuts, car repairs, and plumbing work are not subject to sales tax. However, if you buy a haircut and shampoo product together, the product portion may be taxed depending on how the salon separates the charges.

How Online and Out-of-State Purchases Are Taxed

If you order something online from a retailer outside Connecticut, you may still owe Connecticut sales tax. Large online retailers like Amazon, Walmart, and Target have physical operations or meet economic thresholds in Connecticut, so they collect and remit sales tax on orders shipped to Connecticut addresses. Smaller retailers without a Connecticut presence are not required to collect the tax at checkout.

When a retailer does not collect sales tax, Connecticut residents are technically responsible for paying use tax — a tax on items purchased out of state for use in Connecticut. In practice, most people do not pay use tax on individual purchases. However, if you run a business or make frequent large purchases from out-of-state retailers, you may need to track and report use tax on your Connecticut tax return.

The rules changed significantly in 2018 when the U.S. Supreme Court ruled that states can require online retailers to collect sales tax even without a physical store in that state. Connecticut now requires remote sellers to collect sales tax if they have more than $100,000 in sales to Connecticut residents in the previous calendar year, or if they complete 200 or more separate transactions with Connecticut residents in the previous year.

Restaurant Meals and Prepared Foods

Eating out in Connecticut means paying sales tax on your bill. The 6.35% tax applies to all prepared food — meals served at restaurants, takeout from delis, coffee from cafes, and food from food trucks. This includes non-alcoholic beverages ordered at a restaurant.

The distinction between prepared and unprepared food matters. If you buy ingredients at a grocery store to cook at home, there is no tax. If you buy a pre-made sandwich from a deli case, it is taxed. If you order a sandwich made to order at a restaurant, it is taxed. The tax is based on the state of the food when you buy it, not your intention to eat it at home or elsewhere.

Alcoholic beverages are subject to both sales tax and excise tax. The 6.35% sales tax applies to beer, wine, and spirits, plus an additional excise tax that varies by type of alcohol. This means a bottle of wine costs more in tax than a non-alcoholic item of the same price.

Special Sales Tax Situations

Connecticut has a few situations where sales tax works differently. If you buy an item in another state and bring it to Connecticut, you do not owe Connecticut sales tax on it — the tax was already paid where you bought it. However, if you buy something out of state specifically to avoid Connecticut tax, you may owe use tax.

Trade-in allowances can affect your tax bill. If you trade in an old item toward the purchase of a new one, sales tax is calculated on the difference between the new item's price and the trade-in value, not the full price of the new item. For example, if you trade in a used phone worth $200 toward a new phone priced at $800, you pay sales tax on $600.

Resale certificates allow businesses to buy items without paying sales tax if they plan to resell them. If you own a retail business, you can provide a resale certificate to your suppliers and avoid paying sales tax on inventory. When you sell those items to customers, you collect and remit the sales tax.

Who Collects and Where the Money Goes

Retailers are responsible for collecting sales tax from customers and sending it to the Connecticut Department of Revenue Services. Most retailers remit sales tax monthly, though some file quarterly or annually depending on the amount they collect. The state publishes a list of registered retailers, and you can check whether a business is registered to collect sales tax.

The sales tax revenue goes into Connecticut's General Fund, which supports state services including education, transportation, and social services. Unlike some states that dedicate sales tax to specific programs, Connecticut uses the revenue for general government operations.

If a retailer fails to collect or remit sales tax, the state can pursue the business for back taxes, penalties, and interest. Customers are not held responsible if a retailer does not remit the tax they collected, but the state may pursue the retailer for the unpaid amount.

Frequently Asked Questions

Do I pay sales tax on clothing in Connecticut?

Clothing and footwear under $110 per item are not taxed. If a single item costs $110 or more, the entire purchase is taxed. This applies to shirts, pants, shoes, coats, and accessories like belts and hats. The threshold is per item, not per transaction.

Is there sales tax on groceries?

Unprepared groceries — items you buy to cook at home — are not taxed. This includes bread, milk, vegetables, meat, and canned goods. Prepared foods like deli sandwiches, rotisserie chicken, and bakery items are taxed. Alcohol and hot prepared foods are always taxed.

Do I owe sales tax on items I buy online from out-of-state sellers?

Large online retailers collect Connecticut sales tax at checkout. Smaller retailers without significant sales in Connecticut may not collect it, but you may owe use tax on those purchases when you file your Connecticut tax return. Most individuals do not report use tax on small purchases, though technically they are required to.

What is use tax and when do I pay it?

Use tax is a tax on items purchased outside Connecticut for use within the state. It applies when you buy something from a retailer that did not collect sales tax. You report use tax on your Connecticut income tax return if you made out-of-state purchases. The rate is the same as sales tax: 6.35%.

Are services like haircuts and car repairs taxed in Connecticut?

Most services are not subject to sales tax in Connecticut. Haircuts, car repairs, plumbing, and similar services are not taxed. However, if you buy a product as part of the service — like hair product at a salon — that product portion may be taxed depending on how the business separates the charges.