Connecticut Sales Tax: Rates, Vehicle Rules & Exemptions

The Connecticut sales tax is 6.35% on most retail purchases, and no city or county adds anything on top of it.¹ The rate is the same in Hartford, Stamford, or any small town in between. A handful of categories carry their own rates — higher for meals, luxury goods, and short-term car rentals, lower for boats and computer services — but the 6.35% figure covers the vast majority of what you’ll buy.

The Full Rate Schedule

Beyond the standard rate, Connecticut applies several special tiers to specific transactions:²

1% on computer and data processing services.
2.99% on vessels, vessel motors, and boat trailers.
6.35% general rate on most tangible goods and taxable services.
7.35% on restaurant meals, catering, and prepared foods (the 6.35% base plus a 1% meals surcharge).³
7.75% on luxury items: motor vehicles over $50,000; jewelry over $5,000; clothing, footwear, handbags, luggage, wallets, or watches over $1,000.
9.35% on renting or leasing a passenger vehicle for 30 consecutive days or less.

The luxury rate has a feature that catches buyers off guard: it applies to the entire sales price, not just the portion above the threshold. A $55,000 car is taxed at 7.75% on the full $55,000.⁴

How Vehicle Sales Tax Works

A passenger car or light truck priced at $50,000 or below is taxed at 6.35%.⁵ Cross the $50,000 line on the total sales price and the full amount is taxed at 7.75%.² The math matters when you’re negotiating near that boundary: a car listed at $49,900 owes $3,169 in tax, while a $50,100 car owes $3,883. A $200 price increase produces a $714 jump in tax.

Trade-Ins at a Dealership

When you trade in a vehicle at a licensed dealer, the trade-in value reduces the amount subject to sales tax. Trade in a car worth $10,000 toward a $30,000 purchase and you pay tax on $20,000, not the full price.⁵ Connecticut allows the full trade-in credit, which is one of the clearest financial advantages of buying through a dealer.

Private Party Sales

Buy a vehicle from another person rather than a dealership and the DMV collects the sales tax when you register it.⁶ The DMV does not simply take your word for what you paid. Tax is calculated on the vehicle’s average trade-in book value regardless of the price the buyer and seller agree to, unless the buyer can prove to the commissioner that the book value is wrong.⁷ If you buy a car for $5,000 from a friend but the book value is $8,000, you owe tax on $8,000.

Submitting a false bill of sale to lower the reported price is a class D felony under Connecticut law, and willful failure to pay tax owed can bring a fine of up to $1,000 or up to one year in jail.⁸

Boats

Boats, vessel motors, and boat trailers are taxed at 2.99% regardless of price, and the 7.75% luxury threshold does not apply to vessels.⁹ The rate is lower than most neighboring states charge, which is by design: Connecticut set it that way to keep boat buyers from registering elsewhere to dodge the tax.

What’s Exempt

Connecticut exempts a number of everyday purchases from sales tax under § 12-412. The most significant categories:

Grocery staples such as cereals, milk, meat, fish, eggs, fruits, vegetables, coffee, tea, sugar, and spices. Prepared meals, soft drinks, and candy do not qualify.¹⁰
Prescription medications, along with syringes and needles dispensed by prescription.
Services from licensed child care facilities and academic tutoring services.
Meals sold in student cafeterias, dormitories, hospitals, nursing homes, and assisted living facilities.

Regular clothing and footwear priced under $1,000 are not exempt. Those items are taxed at 6.35% year-round, except during the annual Sales Tax Free Week.

Prepared Meals

Meals sold by restaurants, caterers, and grocery store delis carry a combined 7.35% rate: the 6.35% standard plus a 1% surcharge specific to meals and certain beverages.³ The definition of “meal” is broad. Any food product packaged or prepared for immediate consumption counts, including takeout.¹⁰ A rotisserie chicken from the deli counter is a meal; a raw chicken from the meat case is a grocery item.

Sales Tax Free Week

Connecticut holds an annual Sales Tax Free Week, typically in mid-to-late August, during which qualifying clothing and footwear items are exempt from the 6.35% tax.¹¹ For 2026, the exemption applies to individual items priced at $300 or less. Items above $300 remain fully taxable on the entire price. Both in-store and online purchases from Connecticut retailers qualify.

Items normally sold as a unit, such as a pair of shoes, cannot be separated to fall under the threshold. Athletic gear and protective equipment designed for specific sports or workplace use do not qualify. Jewelry, handbags, wallets, watches, and similar accessories are excluded even if priced below $300. If a coupon or discount drops an item below the cutoff, the reduced price controls eligibility.

Use Tax on Out-of-State Purchases

Buy something from an out-of-state retailer that does not collect Connecticut sales tax and you owe use tax at the same rate that would have applied to an in-state purchase.² This covers online orders, mail-order goods, and anything you bring back from a trip. The rates mirror the sales tax tiers: 6.35% for most items, 7.75% for luxury goods, and so on.

Connecticut gives credit for sales tax already paid to another state. If you bought furniture in Massachusetts and paid that state’s 6.25% tax, you owe Connecticut only the 0.10% difference. If the other state’s rate matched or exceeded Connecticut’s, you owe nothing additional.

Individuals report use tax on their Connecticut income tax return (Form CT-1040 or CT-1040NR/PY), or on a standalone Form OP-186 if they don’t file income tax in the state. Payment is due by April 15 for purchases made during the prior calendar year. Late payments incur interest at 1% per month plus a 10% penalty on the unpaid tax.

If You’re a Seller

Any business that sells goods, rents property, provides taxable services, or operates lodging in Connecticut must register with the Department of Revenue Services for a Sales and Use Tax Permit, regardless of sales volume.⁹ Vendors at a single craft show need a permit. Building contractors need one even when their services aren’t taxable. Registration costs $100 through the myconneCT online portal, and each business location needs its own permit. A previous owner’s permit does not transfer when you buy an existing business.

Businesses file Form OS-114 electronically through myconneCT, due by the last day of the month following the reporting period. DRS assigns each business a monthly, quarterly, or annual filing frequency, and returns are required even for periods with zero sales. Businesses that purchase from out-of-state vendors without paying Connecticut sales tax self-assess and remit use tax on the same form.

1
Justia Law. Connecticut Code Title 12 – Section 12-408
2
Connecticut State Department of Revenue Services. Individual Use Tax Information
3
Connecticut State Department of Revenue Services. PS 2019(5) – Sales and Use Taxes on Meals
4
Connecticut General Assembly. 2023-R-0259 – Luxury Tax and Electric Vehicles
5
CT.gov. Sales Tax on Vehicle Registrations
6
Justia Law. Connecticut Code Title 12 – Section 12-431
7
Connecticut General Assembly. Tax on Used Car Sold Privately
8
Justia Law. Connecticut Code Title 12 – Section 12-737
9
Connecticut State Department of Revenue Services. Sales and Use Tax Information
10
Justia Law. Connecticut Code Title 12 – Section 12-412
11
Connecticut State Department of Revenue Services. Connecticut Sales Tax Free Week