Connecticut Sales Tax for LLCs — 6.35% Compliance Guide

Connecticut imposes a 6.35% sales tax on tangible personal property, certain digital goods, and notably — many services that other states exempt. Understanding what's taxable is critical because Connecticut's sales tax base is broader than most states. For the complete tax picture, see our tax guide. For formation, see our LLC guide.

Connecticut Sales Tax Rate

What's Taxable in Connecticut

Tangible goods: Physical products sold at retail (standard 6.35%)

Digital goods: Downloaded music, ebooks, software, streaming (6.35%)

Services — Connecticut taxes these (partial list):

• Computer and data processing services (1% rate)
• Repair services (most types)
• Telecommunications
• Landscaping and horticulture
• Laundry and dry cleaning
• Storage and warehousing
• Painting and lettering services
• Exterminating services
• Swimming pool maintenance

Services generally EXEMPT:

• Professional services (legal, accounting, medical, engineering)
• Management consulting (unless tangible product delivered)
• Advertising services
• Education and tutoring
• Personal services (hair, spa) — exempt in CT

Connecticut's Service Taxation — Unique Factor

Connecticut taxes more services than most states. Many businesses assume services are exempt and fail to collect sales tax. This is a common audit trigger. The CT Department of Revenue Services specifically targets service businesses that should be collecting tax but aren't.

Critical for Connecticut LLCs: Determine upfront whether your services are taxable. When in doubt, contact the DRS or review Policy Statement 2014(4) and the list of taxable services in Connecticut law.

Registration

1. Register for a Sales and Use Tax Permit with the Connecticut Department of Revenue Services
2. Apply online at portal.ct.gov/DRS (DRS e-Services Center)
3. Registration is free
4. Permit number issued within a few days
5. Begin collecting 6.35% on taxable sales

Collection and Filing

• Collect correct rate at point of sale
• File returns: monthly (if >$4,000/quarter in tax), quarterly (if less), or annually
• File electronically through myconneCT (Connecticut's tax filing system)
• Due: 20th of the month following the reporting period

FAQ

My consulting firm is in Connecticut. Do I charge sales tax?

Management consulting and professional advisory services are generally exempt. However, if you provide computer/data processing services, that's taxable at 1%. If you sell tangible deliverables (reports, printed materials) separately, those may be taxable at 6.35%.

What about selling to out-of-state customers?

You don't collect CT sales tax on sales shipped to customers outside Connecticut. You apply the destination state's rules (and their tax rate, if you have nexus there).

Does the sales tax apply to SaaS products?

Yes. Connecticut considers SaaS (Software as a Service) and cloud computing services to be computer and data processing services, taxable at 1%.

Are groceries taxed?

Unprepared food for home consumption is exempt. Prepared meals, restaurant food, and beverages are taxed at 7.35% (6.35% state + 1% meals surcharge).