Does Connecticut charge sales tax on services?
by May 2, 2026
In many US states, sales tax only applies to tangible goods. While businesses specializing in professional services are often exempt from sales tax obligations, some states require service-based businesses to charge and remit sales tax. As the economy shifts away from manufacturing and evolves into a service-based structure, states may shift tax obligations, too. Here’s what merchants need to know about taxing services in the state of Connecticut, where the state sales tax rate is 6.35%.
Are services taxable in Connecticut?
Connecticut is one of the states in the country where many services are taxed. Connecticut’s laws state that taxable services include:
- Advertising and public relations services
- Business analysis, management, management consulting and public relations services
- Cable and satellite television services
- Car wash services, including coin-operated car washes
- Computer and data processing services (at a reduced rate of 1%)
- Cosmetic medical procedures
- Credit information and reporting
- Dry cleaning and laundry services
- Employment agencies and agencies providing personnel services
- Exterminating services
- Flight instruction and chartering by a certificated air carrier
- Furniture reupholstering and repair services
- Health and athletic club services, including yoga instruction provided at a yoga studio
- Intrastate transportation services provided by livery services
- Janitorial services (including the cleaning of homes, offices and commercial property)
- Landscaping and horticulture services
- Lobbying or consulting services for the purpose of representing a client’s interests in relation to any governmental body
- Locksmith services
- Maintenance services to real property
- Manicure services, pedicure services and all other nail services
- Miscellaneous personal services, exclusive of services rendered by licensed massage therapists and licensed hypertrichologists
- Motor vehicle repairs, including any type of repair, painting or replacement to the body or operating parts of a motor vehicle
- Motor vehicle storage services, including the storage of motor homes, campers, and camp trailers
- Motor vehicle towing and road services
- Packing and crating services
- Painting and lettering services
- Parking services, including valet parking at airports, except metered space, in a lot with 30 or more spaces
- Personnel training services when the training service provider is engaged by an employer to provide job-related training to personnel whose primary workplace is located in Connecticut
- Pet grooming, pet boarding services, and pet obedience services
- Photographic studio services
- Piped-in music provided to business or professional establishments
- Prepaid telephone calling services
- Private investigation, protection, patrol work, watchman and armored car services, exclusive of these services provided by off-duty police officers and firefighters
- Radio or television repair services
- Refuse removal for commercial, industrial or income-producing property
- Renovation and repair services to existing commercial, industrial and income producing property
- Repair services to electrical or electronic devices, including, but not limited to, air-conditioning and refrigeration equipment
- Repair or maintenance services to tangible personal property and contracts of maintenance, repair or warranty
- Sales agent services for selling tangible personal property
- Services to industrial, commercial and income-producing real property, including, but not limited to, management, repair and renovation services, and including voluntary evaluation, prevention, treatment, containment or removal of hazardous waste or other contaminants of air, water or soil
- Sign painting and lettering
- Spa services, regardless of where performed, including body waxing and wraps, peels, scrubs and facials
- Stenographic services
- Storage or mooring of any noncommercial vessel on land or in the water, except for the period of October 1 through May 31
- Storage: The furnishing in Connecticut of space for storage of personal property by a person in the business of furnishing such space, excluding furnishing space used by a person for residential purposes
- Swimming pool cleaning and maintenance services
- Telecommunications services
- Telephone answering services
- Warranty and service contracts for any item of tangible personal property
- Window cleaning services
Please keep in mind that this is a guideline, and you should consult with a sales tax professional to determine if the services your business provides should be taxed. For an in-depth look at Connecticut sales tax, TaxJar’s guide to Connecticut sales tax and the Connecticut Department of Revenue Services have more details.
Stay compliant with sales tax when you sell services
In Connecticut, most service-based businesses must assess sales tax, file a return, and remit payment to the state. Yet, not all services are taxed and some services – like SaaS sold to a business and used for business – require a lower sales tax rate. Use TaxJar to simplify all the sales tax processes. Learn more about TaxJar and start automating your sales tax compliance. Sign up for a free, 30-day trial and find out how TaxJar can work for you.
FAQ: Services subject to sales tax in Connecticut
Learn more about the common questions (and their answers) about charging sales tax on services in Connecticut.
Some labor or repair work may be taxable (see the state’s guidelines). However, per The Building Contractors’ Guide to Sales and Use Tax (State of Connecticut):
“A contractor’s labor is subject to tax when the service is to:
• Existing commercial real property;
• Existing industrial real property;
• Existing income-producing real property; or
• Any real property if it is one of the services listed in
Services Taxable to All Real Property on Page 13.”
Yes, SaaS is taxed at the standard state sales tax rate of 6.35%; however, SaaS sold to a business and used for business is taxed at a reduced 1% sales tax rate.
Shoe repair services are exempt from sales tax. In addition, some services rendered at a home or residence of a disabled individual also may be exempt from sales tax, per the Connecticut State Department of Revenue Services; these services include “…Landscaping and horticulture services, window cleaning services, or maintenance services rendered at the residence of a person eligible for and currently receiving total disability benefits under the Social Security Act. “ Water, steam, and telegraph services also are exempt. Visit the Department of Revenue Services for a full list of exempted products and services.
Connecticut offers a very specific definition of marketing, and, because of this, digital marketing agencies might need to charge and remit sales tax. Marketing, per the state’s definition, includes testing and research for a client related to the development of a product or goods/services.
However, the state also notes the following: “Business analysis, management, management consulting and public relations services, however, are not considered to be marketing services and are subject to the Sales and Use Tax even if an insignificant portion of the contract involves marketing services.” If you are unsure if your business needs to assess and remit sales tax, consult a tax professional for advice and clarification.
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