The 2016 Connecticut State Sales Tax
What is the 2016 Connecticut Sales Tax Rate?
The Connecticut state sales tax rate is 6.35%, and the average CT sales tax after local surtaxes is 6.35%.
- Groceries, prescription drugs and non-prescription drugs are exempt from the Connecticut sales tax
- Counties and cities are not allowed to collect local sales taxes
- Connecticut has no special sales tax jurisdictions with local sales taxes in addition to the state sales tax
- Connecticut has a higher state sales tax than 59.6% of states
Connecticut has a variety of special sales tax cases in which certain items are exempt or subject to special tax rates:
- Clothing costing less then $50 is fully exempt from the sales tax
- Internet services, magazine and newspaper subscriptions, and textbooks are fully exempt from the sales tax
- Compact Fluorescent Light Bulbs are fully exempt from sales tax as part of an energy-efficiency subsidy
- Shipping and handling charges on sales of tangible property & services are subject to sales tax
If you are a Connecticut business owner, you can learn more about how to collect and file your Connecticut sales tax return at the 2016 Connecticut Sales Tax Handbook .
Connecticut Sales Tax Exemptions
Connecticut doesn't collect sales tax on purchases of most non-prescription drugs, prescription drugs and groceries. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate.
Some items may not be eligible for these reduced sales tax rates, such as expensive clothing, unhealthy food or drinks like soda, and certain non-essential pharmaceuticals. Connecticut does not treat candy or soda as groceries, which means they are not subject to reduced grocery sales tax rates. Other items including gasoline, alcohol, and cigarettes are subject to various Connecticut excise taxes in addition to the sales tax.
Connecticut has two sales tax holidays, during which certain items can be purchased sales-tax free. For more details, see the Connecticut sales tax holiday calendar.
In some states, items like alcohol and prepared food (including restaurant meals and some premade supermarket items) are charged at a higher sales tax rate. The CT sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. Connecticut's sales tax rates for commonly exempted items are as follows:
$100 Restaurant Dinner
$100 of groceries
$100 in clothes
$100 of consumer products
$6.35 sales tax
$0.00 sales tax
$6.35 sales tax
$6.35 sales tax
Connecticut Sales Tax Exemption Certificate
Unlike a Value Added Tax (VAT), the Connecticut sales tax only applies to end consumers of the product. Individuals and companies who are purchasing goods for resale, improvement, or as raw materials can use a Connecticut Sales Tax Exemption Form to buy these goods tax-free.
Companies or individuals who wish to make a qualifying purchase tax-free must have a Connecticut state sales tax exemption certificate, which can be obtained from the Connecticut Department of Revenue Services . On making an exempt purchase, Exemption Certificate holders may submit a completed Connecticut Sales Tax Exemption Form to the vendor instead of paying sales tax.
Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full Connecticut sales tax code) can be downloaded from the Connecticut Department of Revenue Services here .
Connecticut Sales Tax Calculator
Whenever you make a purchase at a licensed Connecticut retailer, your sales tax will be automatically calculated and added to your bill. To lookup the sales tax due on any purchase, use our Connecticut sales tax calculator.
Connecticut Use Tax
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If you buy goods and are not charged the Connecticut Sales Tax by the retailer, such as with online and out-of-state purchases, you are supposed to pay the 6.35% sales tax (less any foreign sales tax paid) for these items yourself as the Connecticut Use Tax.
Your are expected to voluntarily list your liable purchases on a Connecticut Use Tax Return, which should be attached with payment to your Connecticut Income Tax Return. Historically, compliance rates with with the Connecticut Use Tax have been low.
Connecticut Local Sales Taxes
Connecticut does not allow local jurisdictions like cities or counties to collect a local sales tax. The Connecticut state sales tax of 6.35% is applicable statewide. You can view the sales tax rates for various cities in Connecticut here.
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