Connecticut taxes through the Connecticut Department of Revenue Services at a 6.35% statewide base rate, with local rates stacking on top and economic nexus for remote sellers at $100,000 in sales AND 200 transactions. Filing runs monthly, quarterly, or annually by liability. Because Connecticut runs an annual bracket, low-volume property management can go twelve months between returns — which is exactly how long a liability account can drift before anyone looks at it.
Employer registration runs through the Connecticut Department of Labor, and the entity is registered with the Connecticut Secretary of the State. One of the few states requiring BOTH thresholds to be met, not either — so high-value, low-volume sellers often are not required to register.
At a glance
Sales tax authority
Connecticut Department of Revenue Services — 6.35% statewide base rate
Economic nexus
$100,000 in sales AND 200 transactions
Filing cadence
Monthly, quarterly, or annually by liability
Employer registration
Connecticut Department of Labor
Entity registration
Connecticut Secretary of the State
Owner and trust funds in Connecticut
Money held for owners in Connecticut is not your money, and Connecticut sets its own rules — through state law and the Connecticut Secretary of the State-registered licensing regime — on how those funds are held, how often they are reconciled, and what records must exist. We keep the trust ledger reconciled to the bank with owner-level detail behind every balance; whether that satisfies Connecticut's specific requirement is a determination for you and your attorney, not us.
Security deposits in Connecticut
Security deposits in Connecticut are a liability, not income. Connecticut caps a residential deposit at 2 months' rent, and requires you to return or account for it within 30 days of move-out. That deadline is why the ledger has to be per-tenant rather than one pooled balance — a pooled figure cannot answer "what is owed to this tenant, and by when," which is the only question that matters when a deposit is disputed.
Registering to do business in Connecticut
Registering to do business in Connecticut runs through the Connecticut Secretary of the State, with tax accounts through the Connecticut Department of Revenue Services and employer accounts through the Connecticut Department of Labor. Connecticut treats these as wholly independent, so being in good standing with one says nothing about the others — and the sales tax account is the one that accrues a real balance while you are not looking.
Connecticut rates and sourcing
The Connecticut statewide base rate is 6.35%. That sits mid-table nationally, with local rates layered on top and sourced to the delivery address rather than to your own location. Sourcing is where this is won or lost, and with economic nexus set at $100,000 in sales and 200 transactions, it becomes your problem the moment that threshold is crossed.
We keep the books. You run the business.
Categorization, reconciliation, month-end close, and clean financial statements — with nothing left for you to chase.
View pricingHow It Works
Free review
We check where your property management books stand and whether Connecticut activity has crossed $100,000 in sales and 200 transactions.
Register what is needed
Accounts set up with the Connecticut Department of Revenue Services, plus the Connecticut Department of Labor if you have employees here.
Catch up
Back periods cleaned up at a fixed quoted price, including any Connecticut liability that was collected but never reconciled.
Close on cadence
Monthly close worked backward from your Connecticut due dates — monthly, quarterly, or annually by liability.
Property Management Bookkeeping in Connecticut — Frequently Asked Questions
Do property management need to register for sales tax in Connecticut?
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How often do property management file in Connecticut?
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Which Connecticut agencies do property management deal with?
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Do property management pay Connecticut state income tax?
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How should Connecticut security deposits appear in the books?
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Do you prepare income tax returns for property management?
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Property Management bookkeeping in Connecticut
Book a free consultation. We will check where your books stand and whether your Connecticut activity has crossed $100,000 in sales and 200 transactions.
- Done-for-you
- Solo or group
- Nationwide
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