Sales Tax Nexus in Connecticut: What Online Sellers Need to Know

The Short Answer

Connecticut triggers sales tax obligations at $100,000 in sales OR 200 transactions. Single statewide rate, no local additions. Connecticut has taxed computer services (including SaaS) for decades — at a reduced rate rather than the standard one. The $50-per-item clothing exemption is worth knowing about for apparel sellers.

Economic Nexus Threshold

• Dollar threshold: $100,000 in gross receipts from sales into Connecticut
• Transaction threshold: 200 or more separate transactions
• Either/Or: Meeting either triggers the obligation
• Measurement period: Preceding 12 calendar months (rolling)
• Effective date: December 1, 2018

Does Connecticut Count Marketplace Sales Toward Your Threshold?

Marketplace facilitators collect and remit Connecticut sales tax on their facilitated transactions. Whether their facilitated sales count toward your own threshold should be confirmed for your situation — Taxero evaluates this during onboarding.

What Taxable Products Look Like in Connecticut

Connecticut: single statewide rate. No city taxes, no county taxes anywhere in the state.

• Clothing: Items under $50 per item are exempt. Items $50 and over are fully taxable.
• Groceries: Most unprepared food exempt. Prepared food is taxable at a separate, higher rate.
• SaaS and computer services: Taxable at a reduced rate — not the standard rate. Connecticut has taxed computer and data processing services since 1991. SaaS falls within this category. This is a significant rate difference from other taxable digital goods.

How to Register in Connecticut

Connecticut is not an SST member. Two steps:

• Business registration: businessexpress.ct.gov
• Tax account: myconneCT.ct.gov
• Cost: Free

Filing Requirements

Monthly (liability over ~$4,000/year), quarterly, or annual. Due date: 31st of the following month. File Form OS-114 via myconneCT.

What Happens If You Don't Register

Late filing: 10% of tax due. Late payment: 15% penalty plus 1% per month interest.

How Taxero Handles Connecticut

Connecticut's reduced SaaS tax rate is a nuance that matters. Taxero applies the correct reduced rate for software/SaaS sales, the clothing exemption at the $50/item threshold, and handles registration and quarterly OS-114 filings.

---

Get Your Free Nexus Report

Check Your Connecticut Nexus Exposure →