Connecticut Room Occupancy Tax
The primary tax that applies to short-term rentals is the Connecticut Room Occupancy Tax. This tax is levied on the total payment received for occupancy of a room or rooms in a hotel, lodging house, or bed and breakfast for up to 30 consecutive calendar days.
The current tax rate is 15% of the total payment received for occupancy of the room or rooms for up to 30 consecutive calendar days. For bed and breakfast establishments, the rate is slightly lower at 11%.
It’s important to note that rental contracts for a period of less than 90 days, including month-to-month contracts, are considered short-term rentals subject to room occupancy tax for the first 30 days of occupancy.
State Sales Tax
In addition to the room occupancy tax, short-term rentals in CT are subject to the Connecticut state sales tax of 6.35%. This tax applies to the total charges for the rental, including any cleaning fees, service fees, or other mandatory charges. The sales tax is also collected from the guest and remitted to the state by the operator.
Collecting and Remitting Taxes
As a short-term rental host in CT, you are responsible for collecting the Connecticut Room Occupancy Tax from your guests and remitting it to the state. Some booking platforms, like Airbnb, may automatically collect and remit these taxes on your behalf.However, if you offer short-term rentals directly to guests or through a platform that does not collect all applicable taxes, you are required to register with the Connecticut Department of Revenue Services and fulfill all lodging tax obligations.