Retail & Brick-and-Mortar Bookkeeping in Connecticut

What is taxable in Connecticut is as important as the rate. 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. Item-level tax coding is where this is won or lost — a category coded wrong applies at scale, across every transaction, until someone catches it.

The Connecticut statewide base rate is 6.35%. Local rates stack on top and are generally sourced to the delivery address, so the effective rate varies within the state. Getting sourcing right is what keeps the liability account matching what you actually collected.

Connecticut assigns filing frequency by liability — monthly, quarterly, or annually by liability. Because Connecticut includes an annual bracket, a low-volume seller here can go a full year between filings, which is exactly when a liability account drifts unnoticed. We reconcile it monthly regardless of when the return is due.

Economic nexus in Connecticut is $100,000 in sales AND 200 transactions. For retail & brick-and-mortar, that threshold is the one to watch, because it is reached by selling into the state — no office, no staff, no physical presence required. Once you cross it you are expected to register with the Connecticut Department of Revenue Services and begin collecting. We track your Connecticut sales against it and tell you before you cross, not after.