Sales tax holidays allow shoppers to buy certain items tax-free for a short period. More than 15 states have held tax-free weeks or weekends, this year, and Connecticut is no exception. (The state's sales tax holiday started last Sunday and has ended.) But here are a few things you need to know about the event.
Tax-free week in CT 2023
The sales tax holiday in Connecticut ran for a week from Sunday, August 20, to Saturday, August 26.
Connecticut Gov. Ned Lamont announced the 23rd annual sales tax holiday in early August.
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“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.
Gov. Lamont also encouraged Connecticut residents to shop at locally-owned retailers and support the small business community.
During Connecticut's sales tax holiday, clothing and footwear items under $100 are exempt from state sales tax. This means you could buy multiple eligible items under $100 in a single shopping trip or on one receipt without paying state sales tax.
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.
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 summer, families spend an average of more than $800 on back-to-school supplies and clothing. Some policymakers debate whether sales tax holidays are the most effective way to support families and individuals. But sales tax discounts can benefit some shoppers, which is a reason why the events are popular.
Does Connecticut tax-free week apply to online purchases?
The short answer is yes — 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 you place your online order. For more information, see Connecticut’s sales tax holiday guide.
Other tax relief: 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.
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