Key figures
Connecticut receivables
2026, with sources
SaaS at 1%
Connecticut has one statewide sales tax rate, 6.35%, and no local add-ons. It also has a special 1% rate for computer and data processing services and for canned software electronically accessed or transferred, without tangible property, that a business buys for business use. Most B2B SaaS lands in the 1% bucket. Software sold to consumers for personal use, or shipped with tangible property, is 6.35%.
That means the rate depends on who the customer is, not just what you sell. A company with both a team plan and a consumer plan has to tag customers correctly, and keep the business-use evidence for the 1% sales.
When to register
An out-of-state seller must register and get a Sales and Use Tax Permit once it makes 200 or more retail sales into Connecticut and has at least $100,000 of gross receipts from them, measured over the 12 months ending September 30 before the period in question. Both tests must be met. A seller with an employee, an office or inventory in Connecticut is a retailer there regardless of the thresholds.
A self-serve SaaS product with 250 Connecticut subscribers at $40 a month ($120,000 a year) meets both and registers; an enterprise product with 20 customers at $15,000 does not, until someone is hired in Connecticut.
Filing
DRS assigns a monthly, quarterly or annual frequency, and Form OS-114 is due on the last day of the month after each period, filed through myconneCT, even if no sales were made. Unused customer credits and refunds that go unclaimed are unclaimed property, reported to the Treasurer.
Deadlines
- Last day of the month after the periodSales and use tax return, monthly, quarterly or annual as DRS assignsForm OS-114
The federal baseline
This page covers what Connecticut adds. The federal rules underneath it apply here too.
Common questions
Is SaaS taxable in Connecticut?
Yes, at a reduced rate when it is sold to a business. Connecticut taxes computer and data processing services, and canned software electronically accessed by a business for business use, at 1%. The same software bought by a consumer for personal use is taxed at 6.35%. A B2B SaaS company charges 1%; a consumer app charges 6.35%.
We passed $100,000 of Connecticut sales. Do we have to register?
Only if you also made 200 or more retail sales into Connecticut in the 12 months ending September 30. Both tests must be met. An enterprise SaaS company with $400,000 from 30 Connecticut customers does not have economic nexus, though an employee in the state would create nexus on its own.
Receivables next door
- MAMassachusetts receivablesMassachusetts taxes most SaaS as prewritten software at 6.25%, with no local rates. Remote sellers register once Massachusetts sales exceed $100,000; there is no transaction count.
- NYNew York receivablesNew York taxes SaaS as prewritten software, at 4% plus local rates (8⅞% in NYC). Remote sellers register after $500,000 and 100 sales; a New York employee makes you a vendor at once.
- RIRhode Island receivablesRhode Island has taxed SaaS at 7% since October 2018, with no local rates. Remote sellers must comply once they reach $100,000 or 200 transactions in the prior calendar year.
Founder guides on this
- Sales taxSales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.
- RevenueDeferred revenue for SaaS startups, explainedAn annual prepayment is cash today and revenue over a year. How deferred revenue works under ASC 606, why it’s a liability, and the schedule behind it.
- StripeHow to reconcile Stripe payouts to your booksA Stripe payout is charges less fees, refunds and disputes, batched across days. How to book it gross, tie it to the bank, and keep revenue right.
More of the Connecticut guide
- AccountingAccounting and state tax in ConnecticutCorporate tax, conformity to federal rules, apportionment and what it does to your books
- PayablesPayables and contractors in ConnecticutPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in ConnecticutWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in ConnecticutRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in ConnecticutCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.