Sales tax permit · Connecticut
Registering for a Connecticut sales tax permit
Connecticut's state sales tax rate is 6.35% and its remote seller threshold is $100,000 in sales or 200 transactions, measured over the 12-month period ending September 30. If your business has crossed it and needs a permit, we prepare and submit the Connecticut registration through portal.ct.gov/drs/businesses/new-business-resource-center/registering-with-drs for $99, plus any state fee at cost.
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The Connecticut rule for out-of-state sellers
Connecticut requires both tests: $100,000 of gross receipts and 200 or more retail sales (since July 1, 2019). DRS guidance says the count includes sales made through a marketplace facilitator.
Returns once you're registered
New registrations file quarterly or monthly. DRS moves you to annual filing (due January 31) if liability was under $1,000 for the prior July 1 to June 30 period, and to monthly filing (due the last day of the following month) if it was over $4,000, with written notice. Quarterly returns are due April 30, July 31, October 31 and January 31.
Digital products in Connecticut
CT DRS Special Notice 2019(8): digital goods and electronically accessed or transferred canned or prewritten software are taxable at the standard 6.35% rate for sales on and after October 1, 2019; software sold to a business for its own use stays at the 1% computer and data processing services rate.
Connecticut has a marketplace facilitator law, so sales through a marketplace that collects for you are handled by the marketplace.
Registration portal: portal.ct.gov/drs/businesses/new-business-resource-center/registering-with-drs. Alabama · sales tax for online sellers
Paperwork only: whether your sales count toward the threshold is a tax question for your preparer. State fees at cost.
Sources
- Connecticut DRS: 2019 Regular Session state tax legislation overview
- Connecticut DRS: OCG-8, Regarding Marketplace Facilitators and Marketplace Sellers
- Connecticut DRS: Sales and Use Taxes, Nexus
- CT DRS: Managing sales tax (new business portal)
- CT DRS: Special Notice 2019(8), digital goods and canned software
Questions
What is Connecticut's remote seller threshold?
$100,000 in sales or 200 transactions, measured over the 12-month period ending September 30.
Are digital products taxed in Connecticut?
CT DRS Special Notice 2019(8): digital goods and electronically accessed or transferred canned or prewritten software are taxable at the standard 6.35% rate for sales on and after October 1, 2019; software sold to a business for its own use stays at the 1% computer and data processing services rate.
How often are Connecticut returns filed?
New registrations file quarterly or monthly. DRS moves you to annual filing (due January 31) if liability was under $1,000 for the prior July 1 to June 30 period, and to monthly filing (due the last day of the following month) if it was over $4,000, with written notice. Quarterly returns are due April 30, July 31, October 31 and January 31.
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Books you keep on your own computer
Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries.
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