Sales tax holidays are offered in many states, allowing shoppers to buy certain items tax-free for a short period. Over 15 states have held sales tax holidays, or tax-free weekends, this summer, and Connecticut is no exception. (The state's sale tax holiday is happening now.) Here are some things you need to know before you shop.
Connecticut's sales tax-free week is here
The sales tax holiday in Connecticut runs for a week, from Sunday, August 20 - Saturday, August 26.
Earlier this month, Connecticut Gov. Ned Lamont announced the tax break, which, similar to sales tax holidays in other states this summer, comes in time for families who want to save on back-to-school shopping. This is the 23rd tax-free week that’s been held in Connecticut.
“This tax-free holiday is scheduled at the perfect time to help families stretch their dollars during the back-to-school season while also giving businesses an extra boost to their bottom line,” Gov. Lamont said in a release, adding, “I encourage everyone taking advantage of these savings to shop at some of our state’s locally owned retailers and support Connecticut’s great small business community.”
During the week-long Connecticut sales tax holiday, most clothing and footwear items under $100 are exempt from the state's sales and use tax. That means you can purchase several eligible items under $100 in Connecticut — even in one shopping trip or on a single receipt — and not pay state sales tax on those items.
What is the CT sales tax for 2023?
The sales tax rate in Connecticut is currently 6.35%. That rate typically applies to clothing and prepared food. (The state exempts groceries and most medications from sales tax.)
Data show that during this time of year, families spend an average of more than $800 on back-to-school supplies and clothing. Some policymakers argue that tax holidays aren't the most effective way for states to support families and individuals. But sales tax discounts can benefit some shoppers, which is a reason why the events are popular.
What’s included in tax-free week in Connecticut?
A wide variety of clothing and footwear are exempt from state sales tax during Connecticut’s tax-free week. Kiplinger has reported on items that usually qualify as tax-exempt. (This is not an all-inclusive list.)
- Hats, gloves, and earmuffs
- Jeans, dresses, shorts, and shirts
- Socks, sneakers, and slippers
- Rented uniforms, work clothes, and formal wear
- Undergarments, robes, and swimsuits
Note: Several items are still taxed during the tax-free week, like handbags and purses, jewelry, wallets and other accessories, and many sports equipment and supplies. For a complete list of what’s tax-free during Connecticut's 2023 sales tax holiday, visit the state Department of Revenue website.
Does Connecticut tax-free week apply to online purchases?
The short answer is yes — your online purchases of items under $100 are exempt during Connecticut’s sales tax-free week. However, you must pay for the items in full when your place your online order. For more information, see Connecticut’s sales tax holiday guide.
What are the new tax cuts in Connecticut?
Connecticut sales tax-free week is just one form of tax relief in the state. Legislation signed by Gov. Lamont earlier this summer has been described as the largest income tax cut in the state’s history.
The new Connecticut tax law reduces tax rates for middle-income families, increases the state’s earned income tax credit, and expands pension benefits for older adults. Income tax cuts in Connecticut will become effective next year, in 2024.
