Individual Use Tax Information
Who Must Report Individual Use Tax
Anyone who purchases taxable goods or services for use in Connecticut and does not pay Connecticut sales tax on such goods or services must pay the use tax. If you do not comply with the use tax provisions, you may owe penalties and interest in addition to the tax.
If you paid no tax because the purchase was made from an out-of-state Internet or mail order company that did not collect tax, the use tax due is equal to the Connecticut sales tax due on the sale as if it occurred in Connecticut.
If another state's tax was properly paid on purchases made in that state, the use tax due is limited to the amount, if any, by which the Connecticut tax exceeds the tax already paid.
Goods or services that are not subject to Connecticut sales tax are not subject to use tax.
For additional information, see Informational Publication 2020(10), Q & A on the Connecticut Individual Use Tax.
If purchases are made in connection with a business, see Sales and Use Tax.
The use tax rates for purchases of taxable goods or services are identical to the sales tax rates:
- 1% - computer and data processing services;
- 2.99% - vessels, motors for vessels and trailers used for transporting a vessel;
- 6.35% - most goods and services;
- 7.75% - luxury items including jewelry with a sales price of more than $5,000, articles of clothing or footwear intended to be worn on or about the human body, and handbags, luggage, umbrellas, wallets and watches with a sales price of more than $1,000, and most motor vehicles with a sales price of more than $50,000; and
- 9.35% - the rental or leasing of a passenger motor vehicle for 30 consecutive days or less.
You are required to report your use tax liability on Form OP-186, Connecticut Individual Use Tax Return, Form CT-1040, Connecticut Resident Income Tax Return, Form CT-1040NR/PY, Connecticut Nonresident and Part-Year Resident Income Tax Return, or Form CT-1040X, Amended Connecticut Income Tax Return for Individuals, for purchases made during the preceding calendar year.
If you are not required to file a Connecticut income tax return, you must file and pay your use tax liability using Form OP-186 for the entire year or you may file several returns throughout the year.
The Connecticut use tax may be paid at the time of purchase, but not later than April 15 for purchases made during the preceding calendar year.
Interest
Interest is charged at the rate of 1% per month from the due date of the tax return.
Penalty
The penalty is 10% of the tax due.