Connecticut Sales Tax for Contractors (2026): Who Pays on a Home Remodel
Whether a Connecticut contractor charges sales tax on a home remodel, who pays on materials, and three jobs worked at 6.35%.
Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.
The rule in Connecticut
Materials only
You pay tax on materials and charge none for remodeling an owner-occupied home of one to three units. Work on rental or income property is taxable.
6.35%
6.35%, no local tax
Itemizing or time and materials
No change for owner-occupied work.
None; owner occupancy decides
Source: CT DRS IP 2018(2) (DRS guide, Dec 19, 2018)
“This means the contractor pays tax on purchases of materials.”
Three jobs, worked
| Job | Customer | You pay |
|---|---|---|
| Bathroom $12,000 job, $5,000 materials | $0 | $317.50 |
| Kitchen $40,000 job, $15,000 materials | $0 | $952.50 |
| Addition $90,000 job, $35,000 materials | $0 | $2,222.50 |
On the kitchen: The customer pays no sales tax. You pay $952.50 on $15,000 of materials at 6.35%, and build it into the price.
Also check
- The no-tax rule covers owner-occupied homes of one to three units. Painting, carpentry and other services to rental or income property are taxable.
- Landscaping and maintenance services are taxable on any property.
Connecticut sales tax questions
Do contractors charge sales tax in Connecticut?
Not on a home remodel. The contractor pays tax on materials when buying them and charges the homeowner none.
Is labor taxable in Connecticut?
Not to remodel an owner-occupied home of one to three units. Services to rental or income property are taxable.
What rate do contractors pay on materials in Connecticut?
6.35%. Connecticut has no local sales tax.
Compare other states
How we checked
We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .
This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.