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

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.

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.

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 1โ3%.

Net rental profit is subject to both federal income tax (10โ37% in 2026) and Connecticut's state income tax at 5%. Reported on Schedule E (Form 1040). Deduct expenses like mortgage interest, repairs, and depreciation.

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.
Airbnb has agreements to collect and remit taxes in Connecticut โ but coverage is not always complete.
Bottom line: Verify your Airbnb tax report matches your local requirements โ don't assume everything is covered.
In most Connecticut jurisdictions, yes. Common permits and registrations required:
Consequences of non-compliance
5โ25% penalties on unpaid taxes in Connecticut
Revocation of rental permit
Liens on your property
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
Combined lodging/occupancy tax rates for major vacation rental markets in Connecticut.
15% state rooms tax
15% state rooms tax
15% state rooms tax
Rates are estimates based on 2024-2025 data. Always verify with your local tax authority.
Common questions about short-term rental taxes, permits, and compliance in Connecticut.
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