Getting a sales tax permit in CT isn’t just a formality—it’s a legal requirement for any business selling taxable goods or services in Connecticut. Without it, you could face steep fines or even criminal penalties. But knowing when you need it, how to apply, and what to file each month isn’t always clear.
That’s why this guide breaks it all down: who qualifies, how to register, what it costs, and how to avoid the most common compliance mistakes. And if you’re looking to eliminate the guesswork? Hands Off Sales Tax (HOST) offers end-to-end support for sales tax registration, filings, and long-term compliance peace of mind.
Who Needs a Permit & Why It Matters
Connecticut law requires that anyone making taxable sales in the state—whether online, in person, or temporarily at events—must first obtain a Sales and Use Tax Permit from the Department of Revenue Services (DRS). This includes not only storefront retailers, but also marketplace sellers, mobile vendors, and even businesses operating for a single day at a craft fair or pop-up event.
Permit Triggers
You need a sales tax permit in CT if you:
- Maintain a physical presence in Connecticut (store, office, warehouse, or employee)
- Sell taxable goods or services in the state
- Participate in events like craft fairs or farmers’ markets, even for one day
- Meet economic nexus thresholds: over $100,000 in gross receipts or more than 200 transactions with Connecticut customers in the last 12 months
Legal Consequences
Operating without a permit carries real risk:
- Fines up to $500 per offense
- Civil penalties of $250 per day until compliant
- Possible jail time for continued violations
Getting the right permit protects your business, ensures legal compliance, and avoids costly audits or enforcement action.
Step 1: Assemble Required Information
Before applying for a sales tax permit in CT, you’ll need to gather key business details. Having everything ready ensures faster approval and reduces the risk of delays or rejection. The Connecticut Department of Revenue Services (DRS) requires specific information to verify the legitimacy and structure of your business.
Information You’ll Need
Whether you’re registering online or by mail, be prepared to submit:
- Federal EIN or Social Security Number
Used to identify your business with the IRS. - Business structure and formation date
Sole proprietorship, LLC, corporation, etc. - NAICS code
Industry classification of your business activities. - Names and SSNs of owners, officers, or partners
Required for identity verification and compliance screening. - Physical business address for each CT location
If you operate multiple stores or service areas, each must be registered separately.
Acquisitions & Mergers
If your business is purchasing or absorbing another that already has a CT sales tax license, you must still file your own permit application under the new ownership. The DRS does not allow transfers of licenses between entities.
Step 2: Apply for Your Permit
Once you’ve gathered your business information, it’s time to apply for your sales tax permit in CT. The Connecticut Department of Revenue Services (DRS) offers both online and paper options. Most businesses opt for the online route due to its speed and convenience.
Option 1: Apply Online via MyConnectCT
This is the fastest and most recommended method.
- Go to the MyConnectCT registration portal
- Create an account or log in
- Complete the REG-1 Business Taxes Registration Application
- Pay the $100 permit fee via bank account (ACH); credit cards not accepted
- You’ll receive a temporary permit immediately and the official permit within 10–15 business days
Option 2: Apply by Mail or In Person
If you prefer paper, download and complete Form REG-1.
- Submit by mail to:
Department of Revenue Services
PO Box 2937
Hartford, CT 06104-2937 - Or deliver to a DRS field office
Paper applications take longer—allow 2–3 weeks for processing.
Step 3: What Happens Next
Once you submit your application—whether online, by mail, or in person—the clock starts ticking. Connecticut moves relatively quickly, especially for online applicants.
If You Applied Online via MyConnectCT
- You’ll receive a temporary sales tax permit number immediately after payment confirmation.
- This allows you to legally begin selling taxable goods or services right away.
- The official Sales and Use Tax Permit will arrive by mail within 7 to 15 business days.
If You Filed Using a Paper REG-1 Form
- Expect a slower process.
- Applications submitted via mail or at a DRS field office typically take 2 to 3 weeks to process.
- There’s no temporary permit issued for mailed applications, so you must wait until the official one arrives before making taxable sales.
Once you receive your permit, it must be prominently displayed at your place of business. Keep the number handy—it’s required for filings, renewals, and updates to your registration.
Filing & Payment Requirements
Once you receive your Connecticut sales tax permit, staying compliant means understanding your ongoing filing and payment obligations. The Department of Revenue Services (DRS) assigns a filing frequency based on your anticipated or actual tax liability.
Filing Frequencies
Your filing frequency is based on how much sales tax you collect:
- Monthly: If you collect more than $4,000 annually
- Quarterly: If you collect between $1,000 and $4,000 annually
- Annually: If you collect less than $1,000 annually
Filing Deadlines
- Monthly and quarterly returns are typically due on the last day of the month following the reporting period.
- Some sources note the 20th of the following month for certain accounts—confirm with DRS based on your account setup.
- Even if you made no sales, you must file a zero return.
Payment Methods & Penalties
- Payments must be made electronically, typically via MyConnectCT.
- Late filings incur both penalties and interest. The penalty is 15% of the tax due, or $50—whichever is greater.
- Interest accrues at 1% per month.
Staying timely with your filings helps you avoid costly fines and preserve good standing.
Common Mistakes & How to Avoid Them
Even after securing a sales tax permit in Connecticut, many businesses make avoidable mistakes that can lead to penalties or audit exposure. Understanding the most frequent compliance errors—and how to avoid them—can help you stay on solid ground with the Department of Revenue Services (DRS).
Failing to Register Before Selling
Whether you’re setting up a pop-up shop, attending a craft fair, or starting an online business, you must register before your first taxable transaction. Connecticut requires a valid Sales and Use Tax Permit for each physical or digital location where sales are made.
2. Overlooking Economic Nexus
Out-of-state sellers that exceed $100,000 in gross receipts or 200 separate transactions into Connecticut in the prior 12-month period must register—even without physical presence.
3. Missing Zero Returns and Use Tax Filings
Even if you didn’t make sales during a filing period, a zero return is still mandatory. Likewise, if you purchased taxable goods without being charged sales tax, use tax must be self-reported.
4. Ignoring Renewal Notices
Connecticut permits expire every two years and must be renewed to remain valid.
Avoid these slip-ups by setting calendar alerts and using a reliable compliance partner like HOST to manage due dates and multi-location registration.
Expert Support When You Need It Most: How HOST Simplifies Permit Compliance
Registering for and managing a sales tax permit in Connecticut may seem simple at first—but juggling multiple locations, economic nexus triggers, and ongoing filing requirements can quickly become overwhelming. That’s where Hands Off Sales Tax (HOST) steps in.
HOST specializes in full-service sales tax compliance, giving you peace of mind from registration to renewal. Their team understands Connecticut’s specific rules and ensures that every form is filed correctly and every deadline is met.
Here’s how HOST helps:
- Sales Tax Permit Registration
HOST handles your initial Sales and Use Tax Permit setup with the Connecticut DRS, ensuring the correct forms (such as REG-1) are filed with complete, accurate business data. - Multi-Location & Nexus Monitoring
Whether you have multiple stores or are approaching economic nexus thresholds, HOST monitors and manages your registration obligations to avoid surprise penalties. - Return Filing & Payment Oversight
HOST ensures timely, accurate sales tax returns—monthly, quarterly, or annually—and helps set up compliant electronic payments.
With HOST, permit compliance doesn’t have to be your burden. It becomes their responsibility.
Final Word: Get It Right from the Start
Securing and managing your sales tax permit in CT is more than a box to check—it’s a legal and financial safeguard for your business. From choosing the right application method to meeting Connecticut’s strict filing deadlines, every step matters.
If you’re unsure how to proceed or simply want to offload the burden, HOST is your trusted compliance partner. Their expert team handles everything from registration to renewal, so you stay focused on growth—not paperwork. Reach out to HOST today and get the guidance you need to stay compliant and stress-free.
