Connecticut Sales Tax Guide for Businesses
- Sales Tax Rate
- Local Taxes
- Department of Revenue Services
- Tax Line
We wrote this guide for online sellers who want to know if they even have to bother with sales tax in Connecticut, and if so, how best to tackle the sales tax situation in the Nutmeg State.
After reading this, you’ll know:
- Do you or don’t you need to collect Connecticut sales tax?
- Which customers do you collect from?
- How much do you collect?
- What do you do with all the sales tax you’ve collected?
- Way more than you probably ever wanted to know about Connecticut sales tax!
Do you have sales tax nexus in Connecticut?
Good news! You only have to begin thinking about Connecticut sales tax if you have sales tax nexus in Connecticut.
“Sales tax nexus” is just a fancy way of saying “significant presence” in a state.
Connecticut considers a seller to have sales tax nexus in the state if you have any of the following in the state:
- An office or place of business
- An employee present in the state for more than 2 days per year
- Goods in a warehouse
- Ownership of real or personal property
- Delivery of merchandise in Connecticut in vehicles owned by the taxpayer
- Independent contractors or other representatives in Connecticut for more than 2 days per year
Do you have sales tax nexus in Connecticut if you sell on FBA?
If you sell on Amazon FBA, you may have products stored in Connecticut’s Amazon fulfillment center.
You can do one of two things to determine whether or not you have items stored in the FBA warehouse in Connecticut:
- Login to Amazon Seller Central and pull your inventory report
- Sign up for a 30-day free trial of TaxJar and find out from where your Amazon inventory ships with our Amazon badge feature
Connecticut’s Amazon fulfillment center is located at:
|Warehouse Code||Address||County||Tax Rate|
|BDL1||801 Day Hill Rd. Windsor, CT, 06095||Hartford||6.35%|
Is what you’re selling even taxable?
You’ve probably read this far because you realized you have sales tax nexus in Connecticut. Your next step is to determine if what you’re selling is even taxable.
Services in Connecticut are generally not taxable. So if you’re a freelance writer or a plumber, you’re in luck and you don’t have to worry about sales tax. But watch out – if the service you provide includes creating or manufacturing a product, you may have to deal with the sales tax on products.
Tangible products are taxable in Connecticut , with a few exceptions. These exceptions include certain some groceries, some clothing, safety gear like firearm locks, child car seats and bike helmets, compact fluorescent bulbs, college textbooks, medical equipment and certain motor vehicles. Click here for more about tax exempt goods in Connecticut.
So if you sell toys, then charge sales tax to your Connecticut customers.
But if you’re a graphic designer, don’t charge sales tax to your Connecticut customers.
If you have sales tax nexus in Connecticut and your products are taxable, your next step is to register for a sales tax permit.
How to Register for a Sales Tax Permit in Connecticut
Sellers with sales tax nexus in Connecticut must apply for a Connecticut sales tax permit.
Don’t skip this step! Many states consider it unlawful to collect sales tax in their name without a permit. Go here for more on how to register for a sales tax permit in Connecticut.
How to Collect Sales Tax in Connecticut
So you’ve determined that you have sales tax nexus in Connecticut and what you’re selling is taxable. And you’re all set and registered for your Connecticut sales tax permit(s).
The next step is to determine how much sales tax to collect.
Connecticut is one of the few states that only has a statewide sales tax rate. There are no local sales tax rates, which means that collecting sales tax is easy. No matter if you live in Connecticut or out of state, charge a flat 6.35% in sales tax to your customers in Connecticut. The same goes if you have nexus in Connecticut because you sell on FBA.
What are the Amazon sales tax settings for Connecticut?
If you are an Amazon pro seller and use Amazon to collect sales tax, be sure you have your Connecticut sales tax settings entered correctly. Find step-by-step instructions for setting up your Amazon sales tax settings here.
|If you are a…||State tax||County tax||City tax||District tax||Custom rate||Is shipping taxable?||Is gift wrapping taxable?|
|Seller living in Connecticut||X||N/A||Yes (if item is taxable)||No|
|Seller living outside of Connecticut||X||N/A||Yes (if item is taxable)||No|
Should you collect sales tax on shipping charges in Connecticut?
The rule states that if the items that you are shipping are taxable, the shipping charges are also taxable. If you are shipping non-taxable items like food items, then the shipping is not taxable.
Read a full explanation of sales tax on shipping in Connecticut here.
When are Connecticut Sales Tax Returns Due?
Connecticut sales tax returns are due at the end of the month following the taxable period. For example, if you file sales tax in Connecticut monthly, April sales tax return would be due May 31st.
Here’s a breakdown of Connecticut sales tax due dates if you file monthly, quarterly or annually:
2016 Connecticut Monthly Sales Tax Filing Due Dates
|Taxable Period||Due Date|
|January||February 29, 2016|
|February||March 31, 2016|
|March||May 2, 2016*|
|April||May 31, 2016|
|May||June 30, 2016|
|June||August 1, 2016*|
|July||August 31, 2016|
|August||September 30, 2016|
|September||October 31, 2016|
|October||November 30, 2016|
|November||January 2, 2017*|
|December||January 31, 2017|
2016 Connecticut Quarterly Sales Tax Filing Due Dates
|Taxable Period||Due Date|
|Q1 (Jan - Mar)||May 2, 2016*|
|Q2 (Apr - Jun)||August 1, 2016*|
|Q3 (Jul - Sep)||October 31, 2016|
|Q4 (Oct - Dec)||January 31, 2017|
2016 Connecticut Annual Sales Tax Filing Due Date
|Taxable Period||Due Date|
|Year 2016||January 31, 2017|
*indicates a due date pushed back due to a weekend or holiday
How to File Sales Tax in Connecticut
When it comes time to file sales tax in Connecticut you must do three things:
- Calculate how much sales tax you owe
- File a sales tax return
- Make a payment
We’ll walk you through these steps.
How to Calculate How Much Sales Tax You Owe in Connecticut
Calculating how much sales tax you should remit to the state of Connecticut is easy with TaxJar’s Connecticut sales tax report.
All you do is connect the channels through which you sell – including Amazon, eBay, Shopify, Square and more – and we’ll calculate exactly how much sales tax you collected. All the information you need to file your Connecticut sales tax return will be waiting for you in TaxJar. All you have to do is login!
How to File and Pay Sales Tax in Connecticut
You have two options for filing and paying your Connecticut sales tax:
- File online File online at the Connecticut Department of Revenue Services. You can remit your payment through their online system. Connecticut requires that taxpayers pay electronically. If for some reason you can’t pay electronically, you can request a waiver here.
- AutoFile Let TaxJar file your sales tax for you. We take care of the payments, too. You’ll never have to worry about spreadsheets, calculations or filling out complex sales tax returns.
Other Facts You Should Know about Connecticut Sales Tax Filing
There are a few more things you should know about sales tax in Connecticut:
- Late Filing Penalty $50, plus 1% per month of the tax imposed
- Late Payment Penalty 1% of the unpaid tax bill for each month (or fraction of a month) of delinquency
Other penalties for fraud or serial offenses include higher penalties and even criminal charges.
Connecticut requires that any seller with a sales tax permit file a sales tax return on your due date even if you don’t have any sales tax to report or pay. Click here for a list of states that require zero sales tax returns.
And that’s it. You’ve mastered Connecticut sales tax filing! Now that sales tax is out of the way, you can get back to what you do best – running your business.
Connecticut Sales Tax Holidays
Connecticut has announced one sales tax holiday in 2016:
August 21-27, 2016: Back to School Sales Tax Holiday
Check here for more information about Connecticut’s sales tax holidays including how to handle sales tax holidays as an online seller.
Connecticut Sales Tax Resources
For more about Connecticut sales tax, check out the Connecticut section of the TaxJar blog.