If you did not pay taxes on purchases made through the mail, internet or from an out-of-state location at the time of sale, you may owe Connecticut use tax.
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 remain subject to a 1% use tax rate. Vessels, motors for vessels, and trailers to transport vessels are subject to 2.99% use tax rate. For complete Use Tax regulations, see the Connecticut instructions.
To enter use tax for your Connecticut return, follow the steps below:
- State Section
- Edit (pencil)
- Additional Taxes