Everything You Need To Know About Connecticut Sales Tax Rates In 2023
Understanding Connecticut Sales Tax
Sales tax is a type of consumption tax that is imposed on the sale of goods and services in Connecticut. Sales tax is usually collected by the seller at the time of sale, and then paid to the government. It is important for consumers to understand the sales tax rate in Connecticut as it is typically included in the price of goods and services. The rate of sales tax can vary from state to state, so it is important to be aware of the sales tax rate in Connecticut when purchasing goods and services.
What is the Connecticut Sales Tax Rate in 2023?
The current sales tax rate in Connecticut for 2023 is 6.35%. This rate is made up of two components: the state rate of 6.35% and the local rate of 0%. This rate is slightly lower than the rate of 6.35% from the previous year. The state sales tax rate is the same in all counties in Connecticut, however, the local rate can vary from county to county.
What Goods and Services are Subject to Sales Tax in Connecticut?
The majority of goods and services sold in Connecticut are subject to sales tax. However, some goods and services are exempt from sales tax. Examples of goods and services that are exempt from sales tax in Connecticut include certain food and prescription drugs, certain medical services, certain educational services, and certain services related to the sale of real estate.
What Goods and Services are Not Subject to Sales Tax in Connecticut?
There are certain goods and services that are not subject to sales tax in Connecticut. These include certain food items, certain medical services, certain educational services, and certain services related to the sale of real estate. Additionally, some items such as non-prescription drugs, eyeglasses, and hearing aids are exempt from sales tax. Finally, certain items such as candy and soft drinks are exempt from sales tax in Connecticut.
How is Sales Tax Calculated in Connecticut?
Sales tax is calculated by multiplying the purchase price of goods or services by the applicable sales tax rate. For example, if the purchase price of an item is $100 and the applicable sales tax rate is 6.35%, then the amount of sales tax due is $6.35. The final amount due for the purchase would be $106.35.
What is the Sales Tax on Internet Purchases in Connecticut?
The sales tax rate on internet purchases in Connecticut is the same as the sales tax rate on in-state purchases. The state sales tax rate is 6.35% and the local sales tax rate is 0%. It is important to note that there may be additional taxes due on internet purchases made from out-of-state retailers, depending on the state in which the retailer is located.
Are There Any Exemptions or Special Rules For Sales Tax in Connecticut?
Yes, there are certain exemptions and special rules for sales tax in Connecticut. For example, certain items such as non-prescription drugs, eyeglasses, and hearing aids are exempt from sales tax. Additionally, certain items such as candy and soft drinks are exempt from sales tax in Connecticut. Finally, certain items such as certain food items and certain medical services may be exempt from sales tax.
What is the Penalty for Not Paying Sales Tax in Connecticut?
The penalty for not paying sales tax in Connecticut can be quite severe. The penalty for failing to collect sales tax or failing to remit sales tax collected to the state can be as much as 25% of the amount of sales tax due, plus interest. Additionally, the penalty for failing to file sales tax returns can be as much as $500 per return.
Where Can I Get Help With Sales Tax in Connecticut?
If you have questions about sales tax in Connecticut, you should contact the Connecticut Department of Revenue Services at 860-297-5962. Additionally, you can visit the Connecticut Department of Revenue Services website for more information about sales tax in Connecticut.
Conclusion
The sales tax rate in Connecticut for 2023 is 6.35%, made up of a state rate of 6.35% and a local rate of 0%. Most goods and services are subject to sales tax in Connecticut, although some items such as non-prescription drugs, eyeglasses, and hearing aids are exempt from sales tax. The penalty for not paying sales tax in Connecticut can be quite severe, so it is important to be aware of the applicable sales tax rates and rules. If you have any questions about sales tax in Connecticut, you should contact the Connecticut Department of Revenue Services.