If you sell products to customers in Connecticut, you may be required to collect and remit sales tax even if your business is located outside the state.
Connecticut’s economic nexus threshold is $100,000 in gross receipts from sales into the state during the preceding 12-month period. As of July 1, 2025, Connecticut no longer has a separate 200-transaction threshold.
Connecticut Economic Nexus at a Glance
| Rule | Connecticut Rule |
| Economic nexus threshold | $100,000 |
| Measurement period | Preceding 12-month period |
| Transaction threshold | None |
| Marketplace sales included in seller’s threshold? | Yes |
| Marketplace facilitator rules | Yes |
| Tax authority | Connecticut Department of Revenue Services (DRS) |
What Is Economic Nexus in Connecticut?
Economic nexus allows Connecticut to require an out-of-state business to collect and remit sales tax based on its level of sales into the state, even if it doesn’t have a physical presence there.
Connecticut originally introduced an economic nexus test that included both sales and transaction requirements. However, the rules were changed effective July 1, 2025, removing the transaction requirement. Remote sellers should now focus primarily on their Connecticut gross receipts.
What Is the Economic Nexus Threshold in Connecticut?
A remote seller generally establishes economic nexus when it has $100,000 or more in gross receipts from sales into Connecticut during the preceding 12-month period.
Connecticut no longer has a 200-transaction threshold. The use of a preceding 12-month period, rather than simply the previous calendar year, also makes Connecticut different from many other states.
What Sales Count Toward Connecticut’s $100,000 Threshold?
Connecticut uses gross receipts from sales into the state when determining whether the economic nexus threshold has been reached.
This can include sales made through:
- Shopify
- WooCommerce
- Your own ecommerce website
- Marketplace facilitators
- Other sales channels
Businesses should therefore monitor their total Connecticut sales on an ongoing basis rather than waiting until the end of the calendar year.
Do Amazon Sales Count Toward Connecticut Economic Nexus?
Yes, marketplace sales generally count toward Connecticut’s $100,000 economic nexus threshold, even when a marketplace facilitator handles the tax collection.
Marketplace facilitators such as Amazon, Etsy, eBay and Walmart are generally responsible for collecting and remitting Connecticut sales tax on the transactions they facilitate.
For example, if you have $80,000 of Amazon sales and $30,000 of Shopify sales into Connecticut, your combined $110,000 can cause you to reach the economic nexus threshold. You would generally be responsible for collecting tax on your direct sales, while the marketplace facilitator continues to handle its transactions.
Can You Have Connecticut Nexus Below $100,000?
Yes, physical presence can create Connecticut sales tax nexus independently of the economic nexus threshold.
Physical nexus can potentially include:
- An office or other business location
- Employees working in Connecticut
- Inventory stored in the state
- A warehouse or fulfilment location
- Certain other in-state business activities
Businesses should therefore consider both their sales volume and their physical activities when determining whether registration is required.
How Does Connecticut Sales Tax Work?
Connecticut has a standard statewide sales tax rate of 6.35%. Unlike states with extensive local sales taxes, Connecticut does not allow cities and towns to impose their own general sales taxes. This makes rate calculation considerably simpler than in states such as Colorado.
However, certain products and services are subject to different Connecticut tax rates, so sellers should still confirm the correct tax treatment of what they sell.
What Should You Do After Crossing the Connecticut Nexus Threshold?
If your Connecticut gross receipts reach $100,000:
- Confirm when the threshold was reached.
- Review your sales during the preceding 12 months.
- Check whether you already have physical nexus.
- Register with the Connecticut DRS through myconneCT.
- Configure your ecommerce platform to collect the appropriate tax.
- Begin filing and remitting sales tax as required.
Because Connecticut uses a preceding 12-month measurement period, businesses should monitor their sales regularly.
Connecticut Economic Nexus Examples
Shopify seller:
A remote business has $120,000 of direct Shopify sales into Connecticut during the preceding 12 months. It reaches the economic nexus threshold and should review its registration requirements.
Smaller high-volume seller:
A business makes 500 Connecticut transactions but has only $60,000 in gross receipts during the relevant period. The number of transactions alone no longer creates economic nexus under Connecticut’s current rules.
Amazon and Shopify seller:
A business has $75,000 of Amazon sales and $40,000 of Shopify sales into Connecticut. Its combined Connecticut gross receipts are $115,000, meaning it can meet the economic nexus threshold. The marketplace generally handles collection on its sales, while the seller is responsible for its direct transactions.
What If You Should Have Registered Previously?
If you established Connecticut nexus in a previous period but didn’t register, you could have outstanding sales tax liabilities, together with applicable penalties and interest.
Depending on your circumstances, a Voluntary Disclosure Agreement (VDA) may provide a way to resolve historical sales tax liabilities and potentially receive benefits such as penalty relief or a limited lookback period.
It’s important to investigate your options before being contacted by the Connecticut Department of Revenue Services.
FAQs
What is the economic nexus threshold in Connecticut?
Connecticut’s economic nexus threshold is generally $100,000 in gross receipts from sales into the state during the preceding 12-month period.
Does Connecticut still have a 200-transaction threshold?
No. Connecticut removed its 200-transaction requirement effective July 1, 2025.
Do Amazon sales count toward Connecticut’s economic nexus threshold?
Yes, marketplace sales generally count when determining whether the $100,000 threshold has been reached, even though the marketplace facilitator handles tax collection on those transactions.
Can I have Connecticut nexus without reaching $100,000?
Yes, physical presence, such as employees, inventory or a business location in Connecticut, can create nexus independently of the economic nexus threshold.
Does Connecticut have local sales tax?
No, Connecticut does not have general local sales taxes imposed by individual cities or towns, making its rate structure simpler than many other states.
Final Thoughts
Connecticut’s economic nexus rules became simpler in 2025 with the removal of the 200-transaction threshold, but remote sellers still need to monitor whether their gross receipts reach $100,000 during the preceding 12 months.
Businesses should monitor both marketplace and direct sales and separately consider whether they have physical presence in Connecticut. Because the state uses a rolling measurement period, checking sales only at the end of each calendar year may not be sufficient.
RJM Tax Exemption can help you determine whether you have nexus in Connecticut and assist with sales tax registration, filing and Voluntary Disclosure Agreements where required.
Last updated: August 2026. Sales tax rules can change. Always check current Connecticut Department of Revenue Services guidance when determining your obligations.
