Tax CalculatorConnecticut

    Connecticut Vacation Rental Tax Calculator

    Estimate your property tax, lodging tax, federal & state income tax, and depreciation deductions for your Connecticut vacation rental property.

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    Tax Types

    What Taxes Apply to Connecticut Short-Term Rentals?

    Connecticut STR hosts are subject to several types of taxes. Understanding which ones apply โ€” and who collects them โ€” is the first step toward compliance.

    Sales Tax

    Connecticut applies its state sales tax to short-term rental stays โ€” currently at a base rate that contributes to combined lodging rates of 15%. Cities may add local sales tax on top.

    Occupancy / Transient Lodging Tax

    Connecticut's lodging/occupancy tax is the primary STR-specific tax. Combined rates reach 15% in Hartford and 15% in Mystic. This includes state, county, and city-level components.

    Tourism / Convention Center Tax

    While Connecticut doesn't have a prominent statewide tourism tax, some cities and resort areas may levy additional tourism development or marketing district assessments of 1โ€“3%.

    Federal & State Income Tax

    Net rental profit is subject to both federal income tax (10โ€“37% in 2026) and Connecticut's state income tax at 5%. Reported on Schedule E (Form 1040). Deduct expenses like mortgage interest, repairs, and depreciation.

    Property Tax

    Connecticut's average effective property tax rate is 2.14% โ€” among the highest in the U.S.. Assessed annually on market value. STRs may face higher assessments in some jurisdictions.

    Important

    Does Airbnb Collect and Remit Taxes in Connecticut?

    Airbnb has agreements to collect and remit taxes in Connecticut โ€” but coverage is not always complete.

    • Airbnb collects the full Connecticut state lodging tax on your behalf.
    • Since Connecticut has a uniform statewide rate with no additional local taxes, Airbnb typically handles 100% of lodging tax.
    • You're still responsible for filing annual income tax returns for your rental profit.
    • Always verify with the Connecticut Department of Revenue that all taxes are current.

    Bottom line: Verify your Airbnb tax report matches your local requirements โ€” don't assume everything is covered.

    Compliance

    Do You Need a Tax Permit in Connecticut?

    In most Connecticut jurisdictions, yes. Common permits and registrations required:

    • State sales tax permit / seller's permit
    • City or county business license
    • Short-term rental operating permit
    • Lodging tax registration certificate

    Consequences of non-compliance

    5โ€“25% penalties on unpaid taxes in Connecticut

    Revocation of rental permit

    Liens on your property

    Tax Overview

    Short-Term Rental Taxes in Connecticut

    Key tax facts every vacation rental host in Connecticut should know.

    State lodging tax: 15% (uniform, no local variation)

    State income tax: ~5% effective rate

    Property tax rate: ~2.14% (among the highest in US)

    No additional local lodging taxes allowed

    City Breakdown

    Lodging Tax Rates by City in Connecticut

    Combined lodging/occupancy tax rates for major vacation rental markets in Connecticut.

    CityCombined Rate
    Hartford

    15% state rooms tax

    15%
    Mystic

    15% state rooms tax

    15%
    New Haven

    15% state rooms tax

    15%

    Rates are estimates based on 2024-2025 data. Always verify with your local tax authority.

    FAQs About Connecticut Vacation Rental Taxes

    Common questions about short-term rental taxes, permits, and compliance in Connecticut.

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