Connecticut Use Tax
In general, goods or services purchased out-of-state that would be subject to the Connecticut sales tax if those goods or services were purchased from a Connecticut seller are subject to the Connecticut use tax if the out-of-state seller did not charge and collect sales tax on the sale. Generally, this includes purchases of goods by mail order, telephone or on line over the Internet when the goods are shipped or delivered to Connecticut and when the purchaser brings goods back into Connecticut.
Use tax is due when taxable purchases are made but Connecticut sales tax is not paid. Any individual or business purchasing taxable goods or services for use in Connecticut without paying Connecticut sales tax must pay use tax. The use tax rate for purchases made on or before June 30, 2011 is 6%. For purchases made on or after July 1, 2013, the general use tax rate is 6.35%. However, the following items are subject to a 7% use tax rate:
- Most motor vehicles exceeding $50,000;
- Each piece of Jewerly exceeding $5,000;
- Each piece of clothing or pair of footwear exceeding $1,000; and
- A handbag, luggage, umbrella, wallet, or watch exceeding $1,000.
Computer and data processing services remain subject to a 1% use tax rate.
For additional information, please see Connecticut Individual Use Tax Worksheet.