Does Connecticut charge sales tax on services?

by TaxJar December 16, 2023

The majority of U.S. states require merchants to charge sales tax on tangible personal property (TPP), otherwise known as physical goods. Many states also implement sales and use tax on digital goods and SaaS. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by taxing services.

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?

There are many services that are taxable in Connecticut

  • 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 has more details.

How to stay compliant with sales tax when you sell services

Managing all the moving parts of sales tax can be challenging. Are accounting services taxed? What about hair care or car maintenance? They may not be taxed in your state today, but sales tax laws change all the time. TaxJar makes it easier for you to stay current with it all, especially as you scale your business across states.

If you need to charge sales tax on services, TaxJar takes all of these state laws into account and makes your job simple. To learn more about TaxJar and get started automating your sales tax compliance, start a free, 30-day trial today.

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