Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In Connecticut (CT), sales tax is a state-imposed tax on the sale of most goods and some services. The state sales tax rate is 6.35%, which applies to the retail sale, lease, or rental of most goods and taxable services. However, there are exceptions to this rate for certain items; for example, the tax rate on the sale of computer and data processing services is 1%, and the sales tax rate for vehicle purchases is 7.75%. Additionally, some items are exempt from sales tax, such as most groceries, prescription medications, and certain medical equipment. Municipalities in Connecticut do not add additional sales taxes on top of the state rate. It's important for businesses operating in Connecticut to collect the appropriate sales tax from customers and remit it to the Connecticut Department of Revenue Services. Failure to comply with sales tax regulations can result in penalties and interest charges.