Does a store coupon change whether an item is under the Sales Tax Free Week cap?

Yes. The Department of Revenue Services says eligibility is based on the final sales price after all coupons and other reductions have been applied, so a retailer's discount or coupon that takes an item from over the cap to under it makes the item eligible. A rebate that is paid after the sale does not lower the price. The Department's answers do not address manufacturer coupons, so confirm that case with the Department.

What is the cap for the 2027 Sales Tax Free Week?

The Department had not announced 2027 when we checked. What we confirmed: its page for the 2026 week gives a cap of less than 300 dollars per item, and section 262 of Public Act 26-68 writes less than 300 dollars into section 12-407e with no end year, even though the online chapter text still prints 100 dollars. The statute fixes the week as the third Sunday in August through the following Saturday, which gives August 15 to 21, 2027 (computed). Wait for the Department's 2027 page before you print a number.

Which clothing is taxed at 7.75 percent?

The Department lists clothing and footwear intended to be worn on or about the body, and handbags, luggage, umbrellas, wallets and watches, with a sales price of more than 1,000 dollars, and jewelry, real or imitation, above 5,000 dollars. The statute applies the 7.75 percent rate to the entire sales price, not only the part above the threshold.

Are digital goods taxed at a lower rate?

Not for most buyers. The Department says the 6.35 percent rate applies to most goods including digital goods. Canned software that is electronically accessed or transferred and bought by a business for business use is listed at 1 percent, and the same software bought for personal use is taxable at 6.35 percent.

When must an out-of-state store collect Connecticut sales tax?

The General Statutes make a seller engaged in business in Connecticut when it sells from outside the state into it and receives at least 100,000 dollars of gross receipts and makes 200 or more retail sales to Connecticut destinations during the twelve months ended on the September 30 before the reporting period. Both conditions are required. This is not tax advice; confirm with the Department of Revenue Services.

Connecticut: a tax-free week for clothing, and a higher rate on costly apparel

One state, three tax treatments of the same sweater. In Connecticut, clothing and footwear are taxed at the general 6.35 percent most of the year, exempt for one week in August when the item costs less than a set cap, and taxed at 7.75 percent on the whole price when it costs more than 1,000 dollars. Public Act 26-68 raised the cap in the statute itself from 100 to 300 dollars, though the online chapter text still prints 100, and the Department of Revenue Services' own answers explain how a store coupon changes the price that is tested against the cap. That last point is what a Shopify code does to the cart. This page has the verified rule, a computed window for August 2027 that the Department has not yet announced, the rates above and below the week, the remote seller test, and a single-code plan that is written around the coupon answer. This is not tax advice; confirm with the Connecticut Department of Revenue Services.

Updated October 10, 2026 · 13 sourced facts

Photo: 12019, CC0 via Wikimedia Commons

Sales Tax Free Week

The statute puts the week on the third Sunday in August through the Saturday after, which makes it Sunday, August 15 through Saturday, August 21, 2027 (computed; the Department had not announced 2027 when we checked). In 2026 the week exempted most clothing and footwear costing less than 300 dollars per item, online sales included. Public Act 26-68, section 262, writes the 300 dollar cap into section 12-407e with no end year, so it is the cap in law for 2027, but the online chapter text still prints 100 dollars and the Department had not posted a 2027 page when we checked, so confirm the number there before you print it.

Clothing and footwear intended to be worn on the body, under the cap per item (300 dollars under Public Act 26-68)
Backpacks and cleated shoes (added by Public Act 26-68)
Online orders paid in full during the week
Shipping charges on a qualifying item
Not covered: athletic or protective gear, jewelry, handbags, luggage other than backpacks, umbrellas, wallets and watches

Watch out: A store coupon that lowers an item below the cap counts, because the Department tests the final price after coupons and other reductions, but a rebate paid later does not. An item over the cap is taxed on its whole price, not only the excess, and a buy one get one free offer cannot move the charge onto the free item. Pay in full during the week: an item paid for before it is taxable even if it arrives during it. This is not tax advice; confirm with the Connecticut Department of Revenue Services.

Source: Connecticut Department of Revenue Services: 2026 Connecticut Sales Tax Free Week (updated Aug. 12, 2026)

A back-to-school code that works with the price cap

Shipping

Connecticut covers 4,842 square miles and has one sales tax rate for the whole state, 6.35 percent with no local add-ons, so a shipping threshold or a code reads the same in every town. The exceptions are in the price: 7.75 percent on the entire price of clothing, footwear and similar items above 1,000 dollars and of jewelry above 5,000 dollars, and a 1 percent rate for canned software bought by a business for business use. A remote seller is engaged in business in the state when it receives at least 100,000 dollars of gross receipts and makes 200 or more retail sales into it in the twelve months ended each September 30, both conditions together.

Source: U.S. Census Bureau: State Area Measurements (2010)

Source: Connecticut Department of Revenue Services: Sales and Use Tax Information (reviewed Sept. 25, 2026)

Source: Connecticut General Assembly: General Statutes, chapter 219, section 12-407

Now, before you set the code
Decide the code and its depth with the Department's coupon answer in mind: the price tested against the cap is the final price after coupons and other reductions. A store code applied at checkout lowers that price. A rebate paid after the sale does not, so do not promise a post-sale refund as a way under the cap.
Source: Connecticut Department of Revenue Services: 2026 Connecticut Sales Tax Free Week, frequently asked questions
Sunday, August 15 to Saturday, August 21, 2027 (computed)
Run the code for the week the statute describes and re-read the Department's page when it announces 2027, since the online statute text still shows 100 dollars while Public Act 26-68 sets 300. Print a cap in your banner only after the Department posts it for 2027.
Source: Connecticut General Assembly: General Statutes, chapter 219, section 12-407e
When you set prices near the cap
Check items priced just above the cap before the week. An item at 320 dollars with a 10 percent code is 288 dollars and falls under the 300 dollar cap; an item at 350 dollars with a buy one get one free gift is taxed on all 350 dollars, because the Department does not let the charge move to the free item.
Source: Connecticut Department of Revenue Services: 2026 Connecticut Sales Tax Free Week, frequently asked questions
At checkout during the week
Take payment in full during the week. The Department says an item paid for before the week is taxable even if it is delivered during it, and an item paid for during it qualifies even when it ships later, with its shipping charge untaxed as well.
Source: Connecticut Department of Revenue Services: 2026 Connecticut Sales Tax Free Week, frequently asked questions
Year-round, on pricey apparel
Remember that clothing, footwear, handbags, luggage, umbrellas, wallets and watches over 1,000 dollars, and jewelry over 5,000 dollars, are taxed at 7.75 percent on the entire price, whatever the code does to the cart. A premium line that spends part of the year above 1,000 dollars should show tax at checkout for those items.
Source: Connecticut Department of Revenue Services: Sales and Use Tax Information (reviewed Sept. 25, 2026)

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Questions merchants ask

Does a store coupon change whether an item is under the Sales Tax Free Week cap?: Yes. The Department of Revenue Services says eligibility is based on the final sales price after all coupons and other reductions have been applied, so a retailer's discount or coupon that takes an item from over the cap to under it makes the item eligible. A rebate that is paid after the sale does not lower the price. The Department's answers do not address manufacturer coupons, so confirm that case with the Department.
What is the cap for the 2027 Sales Tax Free Week?: The Department had not announced 2027 when we checked. What we confirmed: its page for the 2026 week gives a cap of less than 300 dollars per item, and section 262 of Public Act 26-68 writes less than 300 dollars into section 12-407e with no end year, even though the online chapter text still prints 100 dollars. The statute fixes the week as the third Sunday in August through the following Saturday, which gives August 15 to 21, 2027 (computed). Wait for the Department's 2027 page before you print a number.
Which clothing is taxed at 7.75 percent?: The Department lists clothing and footwear intended to be worn on or about the body, and handbags, luggage, umbrellas, wallets and watches, with a sales price of more than 1,000 dollars, and jewelry, real or imitation, above 5,000 dollars. The statute applies the 7.75 percent rate to the entire sales price, not only the part above the threshold.
Are digital goods taxed at a lower rate?: Not for most buyers. The Department says the 6.35 percent rate applies to most goods including digital goods. Canned software that is electronically accessed or transferred and bought by a business for business use is listed at 1 percent, and the same software bought for personal use is taxable at 6.35 percent.
When must an out-of-state store collect Connecticut sales tax?: The General Statutes make a seller engaged in business in Connecticut when it sells from outside the state into it and receives at least 100,000 dollars of gross receipts and makes 200 or more retail sales to Connecticut destinations during the twelve months ended on the September 30 before the reporting period. Both conditions are required. This is not tax advice; confirm with the Department of Revenue Services.

Dates to plan around

Aug 15, 2027 to Aug 21, 2027Sales Tax Free Week (computed: third Sunday in August to the next Saturday; not yet announced)Connecticut General Assembly: Public Act 26-68, section 262

Facts and sources

The Department's page for the 2026 Sales Tax Free Week says it ran from Sunday, August 16 through Saturday, August 22, 2026, that sales of certain clothing and footwear costing less than 300 dollars per item were exempt from sales tax, that the exemption applies to retailers in Connecticut and to online retailers, and that 2026 was Connecticut's 27th Sales Tax Free Week.
Connecticut Department of Revenue Services: 2026 Connecticut Sales Tax Free Week (updated Aug. 12, 2026) (accessed October 10, 2026)
Section 12-407e of the General Statutes sets the Sales Tax Free Week as the third Sunday in August until the Saturday next succeeding, applies it to any article of clothing or footwear intended to be worn on or about the human body, and excludes special athletic or protective clothing and footwear, and jewelry, handbags, luggage, umbrellas, wallets, watches and similar items carried on the body; the online chapter text still prints a 100 dollar cap, which Public Act 26-68 replaced.
Connecticut General Assembly: General Statutes, chapter 219, section 12-407e (accessed October 10, 2026)
Governor Lamont's release of August 12, 2026 says the 2026 week applies to most clothing and footwear priced under 300 dollars, up from under 100 dollars in prior years, that the list of exempt items adds backpacks and cleats under Public Act 26-68, and that nonelectronic school supplies stopped being taxed on July 1, 2026.
Office of the Governor of Connecticut: release of Aug. 12, 2026 (accessed October 10, 2026)
Section 262 of Public Act 26-68 rewrites section 12-407e, effective from passage: from the third Sunday in August until the Saturday next succeeding, the sales tax does not apply to any article of clothing or footwear, including cleated shoes, intended to be worn on or about the human body, or to any backpack, the cost of which is less than three hundred dollars; the excluded items are athletic or protective clothing and footwear, and jewelry, handbags, luggage other than backpacks, umbrellas, wallets and watches. The text sets no end year.
Connecticut General Assembly: Public Act 26-68, section 262 (accessed October 10, 2026)
The Department's Sales Tax Free Week answers say eligibility is based on the final sales price of the item after all coupons and other reductions have been applied, that a rebate paid after the sale does not lower the price, and that in a buy one get one free offer the cap applies to the item with a charge and the charge cannot be allocated to the free item to get under the cap.
Connecticut Department of Revenue Services: 2026 Connecticut Sales Tax Free Week, frequently asked questions (accessed October 10, 2026)
The same answers say a sale takes place in the week if the buyer pays in full during it, even when delivery comes later, that an item paid for before the week is taxable even if it arrives during it, and that shipping and delivery charges are not taxed when they belong to a qualifying item.
Connecticut Department of Revenue Services: 2026 Connecticut Sales Tax Free Week, frequently asked questions (accessed October 10, 2026)
The Department's tax information page lists a 7.75 percent rate for most motor vehicles over 50,000 dollars, jewelry priced above 5,000 dollars, and clothing, footwear, handbags, luggage, umbrellas, wallets and watches priced above 1,000 dollars.
Connecticut Department of Revenue Services: Sales and Use Tax Information (reviewed Sept. 25, 2026) (accessed October 10, 2026)
Section 12-408 of the General Statutes imposes the rate of seven and three-fourths per cent on the entire sales price of an article of clothing or footwear, a handbag, luggage, umbrella, wallet or watch with a sales price exceeding 1,000 dollars, and of jewelry, real or imitation, exceeding 5,000 dollars.
Connecticut General Assembly: General Statutes, chapter 219, section 12-408 (accessed October 10, 2026)
The Department says the sales tax rate of 6.35 percent applies to the retail sale, lease or rental of most goods, digital goods included, and taxable services, and that Connecticut imposes no additional local sales taxes.
Connecticut Department of Revenue Services: Sales and Use Tax Information (reviewed Sept. 25, 2026) (accessed October 10, 2026)
The Department lists a 1 percent rate for canned software that is electronically accessed or transferred, without tangible property, and bought by a business for business use, and says the same software bought for personal use is taxable at 6.35 percent.
Connecticut Department of Revenue Services: Sales and Use Tax Information (reviewed Sept. 25, 2026) (accessed October 10, 2026)
Section 12-407(a)(15)(A)(v) of the General Statutes says a seller is engaged in business in Connecticut when it sells from outside the state to a destination within it and receives at least 100,000 dollars of gross receipts and makes 200 or more retail sales to destinations in Connecticut during the twelve-month period ended on the September 30 before the reporting period; both conditions are required.
Connecticut General Assembly: General Statutes, chapter 219, section 12-407 (accessed October 10, 2026)
Connecticut has 4,842 square miles of land area.
U.S. Census Bureau: State Area Measurements (2010) (accessed October 10, 2026)
The Census Bureau's Vintage 2025 estimate puts Connecticut's resident population at 3,688,496 on July 1, 2025, up from 3,607,750 in the April 2020 estimates base.
U.S. Census Bureau: Vintage 2025 state population estimates (accessed October 10, 2026)

Not tax advice. Confirm current rules with the state revenue department before you rely on a date or an exemption.

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