Rental Tax Collection and Remittance in the State of Connecticut
Connecticut charges an Occupancy Tax for short term rentals. There are no county or city taxes on short term rentals.
The Occupancy tax rate is the same rate as it is for Hotels/Motels. Connecticut carves out a different rate for Bed/Breakfast Inns. In order to qualify for this tax rate, you need to be an operator living on site. Also, you would need to provide a morning breakfast.
Do I Need To Pay?
If you rent your vacation property short term in the state of Connecticut, then the taxes will be payable. However, some third party payers already will collect these taxes on your behalf.
If you use any online service that charges payments on your behalf you should be good. The online marketplace service that markets your vacation property typically collects guest payments on your behalf. If they do not collect guest payments and merely provide a guest referral, then you would likely be responsible for the taxes. Check with the company if you are not sure.
Exempt Rental Activity – Do not submit taxes
AirbnbBooking.comOther booking sites that charge guest on your behalf
What if you obtain rentals on your own and you charge the guest directly? Then you would need to charge the guest the taxes. Also, you would need to register and submit the payments to the state. These are the situations where this might occur:
- The guest is a friend.
- A guest rented your property from an ad.
- Some guests rented your property from an online site that charges only subscription fees for your listing.
- Guest rented the property from your own website.
State Registration
Register for a business license, file a tax return and pay all at this site: TSC Online. The online site provides many different payment options including ACH and credit card.
Statewide Tax Rate
The tax rate charged depends upon the services of the rental. If a meal is provided as a amenity of the rental (a so-called Bed and Breakfast), then a lower rate is applied.
- General Occupancy Tax Rate: 15%
- Bed/Breakfast Occupancy Tax Rate: 11%
How Do I Pay?
Register for a business license, file a tax return and pay all at this site: TSC Online.
