Connecticut Sales Tax Guide & Nexus Calculator (2026)

Connecticut is one of the last remaining states with a transaction-count alternative nexus trigger — 200 transactions still creates nexus alongside the $100,000 revenue threshold. Connecticut also taxes SaaS and digital goods broadly. For digital-only sellers with many small transactions, the transaction threshold can be the relevant trigger rather than the revenue one.

Quick Reference

Criterion	Detail
State Rate	6.35%
Economic Nexus Threshold	$100,000 gross sales OR 200 transactions
Transaction Threshold	200 transactions (alternative trigger — still active)
Digital Goods / SaaS	Taxable
Typical Filing Frequency	Monthly
SST Member	No
Registration Portal	portal.ct.gov/DRS

Economic Nexus — Revenue and Transaction Thresholds

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Gross Revenue (USD)

$

Total Transactions

Enter your trailing 12-month revenue and/or transaction count to calculate nexus status.

For informational purposes only · Not legal or tax advice · Consult a licensed tax professional · Rules as of 2026

Connecticut triggers nexus via either of two criteria:

1. $100,000 in gross sales into Connecticut in the current or prior 12-month period, or
2. 200 or more separate transactions into Connecticut in the current or prior 12-month period

Whichever threshold you cross first creates the obligation. This matters for sellers with many small orders: 200 transactions at $50 each = $10,000 in revenue, well below the $100,000 revenue threshold — but nexus is still triggered.

Connecticut is one of a small number of states (also New York) that has not eliminated the transaction threshold. If you sell high-volume, low-value items, model your Connecticut exposure based on transaction count, not just revenue.

Marketplace-facilitated sales (Amazon, Etsy, eBay) count toward both thresholds.

Tax Rate and Product Taxability

Connecticut’s state rate is 6.35%. Connecticut does not allow cities or counties to impose additional local sales taxes. The 6.35% state rate is the only rate that applies statewide — there are no local sales tax variations.

This is a significant simplification compared to states like Colorado or California. A single rate applies to every Connecticut customer regardless of location.

Product Categories

Taxable: Tangible personal property, digital goods (including SaaS), prepared food, most retail goods.

Exempt: Prescription drugs, most groceries, clothing (items costing less than $50 per item are exempt; items $50 or more are taxable), qualifying agricultural goods, residential utilities.

Clothing exemption detail: Connecticut provides a per-item clothing exemption for items under $50. This is a threshold per individual item, not the order total. A $45 shirt is exempt; a $55 jacket is taxable on the full $55 amount.

Higher Rates for Specific Categories

Connecticut applies higher rates to certain categories:

• Computer and data processing services: 1% (reduced rate)
• Certain luxury goods: various rates

Verify current rates for your specific product categories through the Connecticut DRS.

Digital Goods and SaaS

Connecticut taxes digital goods and SaaS broadly. The Connecticut Department of Revenue Services treats:

• SaaS — taxable as a computer and data processing service (at the reduced 1% rate in many cases — see below)
• Downloaded software — taxable
• Digital content (ebooks, music, movies, streaming) — taxable
• Online subscriptions — taxable

SaaS at 1%: Connecticut specifically categorizes “computer and data processing services” at a reduced 1% rate rather than the standard 6.35%. SaaS often falls under this reduced rate. This is significantly lower than the standard rate and is one of the more seller-friendly aspects of Connecticut’s digital goods framework.

Verify how the DRS classifies your specific product — the distinction between software-as-a-service (potentially 1%) and digital content (6.35%) can significantly affect your obligation.

Registration

Connecticut is not an SST member, so you must register directly with the Department of Revenue Services.

1. Go to the DRS portal: portal.ct.gov/DRS
2. Access “myconneCT” (the Connecticut tax portal)
3. Register for a Sales and Use Tax Permit
4. Provide EIN, business details, and expected Connecticut activity
5. You will receive a Connecticut Sales and Use Tax Permit number

Registration is free. Permits do not expire but must be updated if business information changes.

Foreign Sellers

Connecticut accepts foreign business registrations. You need a US EIN (obtain via IRS Form SS-4 if needed). A Connecticut physical address or registered agent is not required for remote seller registration.

Filing Frequency and Deadlines

Connecticut assigns filing frequency based on prior-year sales tax liability:

Annual Tax Liability	Filing Frequency
Less than $4,000	Annual
$4,000–$12,000	Quarterly
More than $12,000	Monthly

Monthly due dates: Returns and payments are due by the last day of the month following the reporting period (e.g., January return due February 28/29).

Returns are filed through myconneCT. Connecticut requires electronic filing for all registered sellers above certain thresholds.

Compliance Notes

Transaction threshold still active: Unlike most states that eliminated transaction thresholds by 2025, Connecticut retains the 200-transaction trigger. If you run a high-volume, low-average-order-value business, monitor your Connecticut transaction count.

Uniform statewide rate: The absence of local rates in Connecticut simplifies rate calculation. One rate (6.35%) applies everywhere in the state. No ZIP code rate lookups required.

SaaS at 1%: The reduced 1% rate on computer and data processing services (which typically includes SaaS) makes Connecticut’s effective digital goods rate considerably lower than the headline 6.35%. Ensure your tax engine categorizes your product correctly.

Clothing exemption: If your catalog includes clothing items, Connecticut’s per-item $50 threshold requires item-level classification, not just order-level.

Amazon FBA: Amazon does not currently operate a major fulfillment center in Connecticut, reducing the FBA physical nexus risk for most sellers.

Marketplace sales count toward both thresholds: Your Amazon or Etsy transactions count toward the 200-transaction threshold, not just the revenue threshold.

Related Guides

• US Sales Tax Overview
• State Sales Tax Index — All 50 States
• Stripe Tax for Digital Goods and SaaS
• Foreign Sellers Guide to US Sales Tax
• US Sales Tax Compliance Checklist