Individual 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 online 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 general use tax rate is 6.35%. However, the following items are subject to a 7.75% use tax rate:
- Most motor vehicles exceeding $50,000;
- Each piece of jewelry 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 are subject to a 1% use tax rate.
Vessels, motors for vessels, and trailers to transport vessels are subject to a 2.99% use tax rate.
Use the Connecticut Individual Use Tax Worksheet to calculate your use tax liability.