Connecticut charges 6.35% sales tax on most online sales, but clothing, footwear, handbags, luggage, umbrellas, wallets and watches priced over $1,000 per item are taxed at 7.75% on the entire price, and so is jewelry over $5,000. Shopify can collect both rates, but only after you register with the state, turn on Connecticut in your tax settings and prove the thresholds work with real test orders.
That luxury rule matters for stores in Greenwich, Westport and New Canaan, where a $1,200 coat or a $6,000 ring is an ordinary order. Everything below comes from the statutes (C.G.S. § 12-407 and § 12-408), Shopify's help center and New York's tax publications as of September 2026. It is practical setup guidance, not tax advice: confirm your situation with the Connecticut Department of Revenue Services (DRS) or your accountant.
Which Connecticut sales tax rates matter for an online store?
Connecticut has one statewide rate and no local sales taxes, which makes it simpler than New York. The complications are a handful of special rates written into § 12-408(1) of the General Statutes. These are the ones an ecommerce store is likely to meet:
| What you sell | Rate | Where it comes from |
|---|---|---|
| Most goods, including clothing at $1,000 or less | 6.35% | General rate, § 12-408(1)(A) |
| Clothing, footwear, handbags, luggage, umbrellas, wallets or watches over $1,000 per item | 7.75% on the entire price | § 12-408(1)(H)(iii) |
| Jewelry, real or imitation, over $5,000 | 7.75% on the entire price | § 12-408(1)(H)(ii) |
| Digital goods and prewritten software sold to consumers | 6.35% | Treated as tangible personal property, § 12-407(a)(13) |
| Meals from restaurants, caterers and grocery prepared food | 7.35% (6.35% plus 1%) | § 12-408(1)(I) |
| Clothing and footwear under $100 during August's sales-tax-free week | 0% | § 12-407e |
The clothing exemption many guides still mention is gone
Connecticut used to exempt clothing and footwear under $50. Public Act 11-6 repealed that exemption in 2011, so everyday apparel is taxed at 6.35%. The only remaining clothing break is the annual sales-tax-free week, which runs from the third Sunday in August through the following Saturday for items under $100.
Do you have to collect Connecticut sales tax?
If your business is based in Connecticut, yes: you need a sales tax permit from DRS before you sell, and you collect tax on taxable orders shipped to Connecticut addresses. Registration is done through myconneCT, the DRS online portal.
If you're based elsewhere, say in Westchester, Connecticut's economic nexus test applies. Under § 12-407(a)(12)(G) you must collect once you have at least $100,000 in gross receipts and 200 or more retail sales into Connecticut during the twelve months ending September 30 before the filing period. Both conditions must be met, and the measurement year ends in September, not December.
Sales through marketplaces such as Amazon or Etsy are generally handled by the marketplace facilitator under § 12-408e. Orders on your own Shopify storefront are your responsibility.
How do you set up Connecticut tax in Shopify, step by step?
Shopify's current US tax services are Shopify Tax and Manual Tax; the older Basic Tax service stopped accepting new US enrollments on July 14, 2025, according to Shopify's help center. The steps below assume Shopify Tax.
1. Register with DRS
Get your Connecticut sales tax registration before you collect a cent. Shopify only calculates tax for places where you tell it you're registered.
2. Add Connecticut in Shopify
Go to Settings > Taxes and duties > United States, choose Collect sales tax, select Connecticut and enter your sales tax ID.
3. Choose the tax service
Shopify Tax is free until you pass $100,000 in sales (annually for stores created before May 13, 2026, as a lifetime threshold for newer stores), then costs 0.35% per US order on Basic, Grow and Advanced, capped at $0.99 per order.
4. Categorize every product
Shopify Tax calculates rates from product categories. An uncategorized coat or watch can't be matched to the right rule, so fill in the category on every product, including new arrivals.
5. Check shipping
Connecticut taxes shipping and delivery charges on taxable items (more on that below). Confirm your checkout adds tax to shipping on Connecticut orders.
6. Run test orders
Place real test orders to Connecticut addresses before launch, using the scenarios in the next section.
How do you handle the 7.75% luxury rate per item?
Three details trip stores up. First, the threshold is per article, not per order: two $600 sweaters in one cart are both taxed at 6.35%. Second, the statute says "exceeding" $1,000, so a $1,000.00 handbag stays at 6.35% and a $1,000.01 handbag doesn't. Third, once an item crosses the line, 7.75% applies to the whole price. A $1,200 coat carries $93.00 of tax, not $76.20.
Discounts can move an item back under the line. Connecticut's definition of sales price excludes cash discounts allowed and taken, and the face value of coupons (§ 12-407(a)(8)(B)). A $1,100 handbag sold with a 15% code costs $935 and should be taxed at 6.35%. Confirm with DRS how your specific promotions are treated before you rely on this, especially for gift-with-purchase or bundle pricing.
A five-order test before launch
Ship each test order to a Connecticut address and write down the tax Shopify calculates: a $999.99 dress (expect 6.35%); a $1,000.01 dress (expect 7.75% on the full price); a $1,100 handbag with a 15% discount code (expect 6.35% on $935); a $5,000.01 ring (expect 7.75%); and a cart with two $600 items (expect 6.35% on both). Repeat the test whenever you change tax apps, product categories or discount logic.
When an override is, and isn't, the fix
If a test fails, Shopify lets you add a product override: build a collection, then go to Settings > Taxes and duties > United States > Tax rates and exemptions > Add product override and set a Connecticut rate for it. Overrides apply at the state level, which is fine in Connecticut because there are no local taxes. The catch is that an override is a fixed rate: a "luxury" collection taxed at 7.75% will still charge 7.75% after a discount pushes an item under $1,000. If your catalog lives near the threshold and you discount often, a tax engine that evaluates the final price per line item is the safer answer.
Shipping, discounts and returns in Connecticut
Shipping is taxable on taxable items
Gross receipts include charges for shipping or delivery, whether or not they're stated separately (§ 12-407(a)(9)(A)(iii)). The rule doesn't apply to exempt items.
Discounts reduce the taxable price
Cash discounts taken and coupon face value come off the sales price before tax, which can also change which rate applies to a luxury item.
Refunds within 90 days
The price of goods returned within 90 days and refunded in cash or credit is excluded from gross receipts, so the tax comes back off your return.
Also selling into New York and Westchester?
New York's remote-seller threshold is higher and structured differently: more than $500,000 in sales of tangible personal property delivered into the state and more than 100 sales, measured over the preceding four sales tax quarters. Below that, a Connecticut store with no physical presence in New York isn't required to register just because it ships to Rye or Scarsdale.
Once you are registered, the rates are local. New York's Publication 718-C shows Westchester County (outside Yonkers) at a 4 3/8% local rate on top of the 4% state rate, which makes 8.375% on most goods, and Yonkers at 8.875%. Clothing and footwear under $110 per item is exempt from the 4% state tax, yet in Westchester it still carries the 4.375% local portion (4.875% in Yonkers). New York City, by contrast, exempts it completely. Address-level accuracy matters here, and Shopify Tax calculates at the street-address level rather than by ZIP code.
When should you add a tax app or an accountant?
Shopify Tax plus a disciplined test routine covers most single-state Connecticut stores. Bring in a dedicated tax engine or an accountant when you sell a lot of luxury items that are discounted often, when you register in several states, when you sell to resellers or interior designers with resale certificates, or when you mix marketplace and storefront sales and need clean filing reports.
If you're launching or rebuilding a Connecticut store, tax configuration belongs on the launch checklist next to payments and shipping. We can set this up as part of a Shopify build (from $2,000) or a custom store (from $3,500); see our ecommerce development in Connecticut service and our Craft Commerce vs Shopify comparison if you're still choosing a platform.
Frequently asked questions
Does Shopify charge Connecticut sales tax on shipping?
It should. Connecticut includes shipping and delivery charges in the taxable amount of a taxable sale, whether or not they are listed separately, under C.G.S. § 12-407. Shipping on exempt items isn't taxed. Check your Shopify tax settings and place a test order to a Connecticut address to confirm tax is being added to shipping.
Is clothing taxable in Connecticut?
Yes. Clothing and footwear are taxed at 6.35%; the old exemption for items under $50 was repealed in 2011. Items over $1,000 per article are taxed at 7.75% on the full price, and during the August sales-tax-free week, clothing and footwear under $100 per item is exempt.
Is the 7.75% rate charged only on the amount over $1,000?
No. Once a single article of clothing, footwear, a handbag, luggage, an umbrella, a wallet or a watch exceeds $1,000, or jewelry exceeds $5,000, the 7.75% rate applies to the entire sales price. A $1,200 coat is taxed $93.00 rather than $76.20.
When does an out-of-state Shopify store have to collect Connecticut sales tax?
When it has at least $100,000 in gross receipts and 200 or more retail sales into Connecticut during the twelve-month period ending September 30. Both tests must be met. Marketplace sales are generally handled by the marketplace facilitator.
Does Shopify Tax cost extra?
Shopify Tax is free until a store passes $100,000 in sales. After that, Shopify charges 0.35% per US order on the Basic, Grow and Advanced plans and 0.25% on Plus, capped at $0.99 per order. The fee is billed to you with your Shopify subscription, not to your customers.
Set it up once, test it, then recheck it
Connecticut's rules are simpler than most states' until you sell expensive apparel, accessories or jewelry. Register, categorize every product, run the five test orders and repeat them whenever your tax setup or discounting changes. If you ship to Westchester at scale, keep an eye on New York's $500,000 threshold and its local rates.
