Merchant Services in Connecticut
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What a Connecticut business needs to know before taking card payments: the state sales tax rate, what the law says about card surcharges, and what it costs to form an LLC. Every figure below comes from an official Connecticut page or statute and links to it. Checked 2026-10-15.
Connecticut at a glance
| Item | What we found | Source |
|---|---|---|
| State sales tax base rate | 6.35% | Official source |
| Card surcharge rule | Prohibited by statute | Official source |
| LLC formation fee | $120.00 | Official source |
| LLC recurring fee | $80.00 every year | Official source |
| Wage income tax | Up to 6.99% | Official source |
Card surcharges in Connecticut
What the statute says
Connecticut General Statutes section 42-133ff is titled "Surcharge based on method of payment prohibited. Discount not prohibited." Visa also lists Connecticut as prohibiting surcharging.
Connecticut's law does not let a seller add a surcharge when a customer pays by card, so a surcharge is not an option here. The statute does not stop you from offering a discount for another way of paying: a discount is treated differently from a surcharge in the Connecticut text above. If you want to pass on card costs, price the card amount as your normal price and offer a lower price for cash, and ask your processor and a lawyer how to display it.
Worked example: a $100 card sale
Using a published online card rate of 2.9% + $0.30 (Stripe, checked 2026-10-15), a $100 sale costs you $3.20 to process.
| Your card cost | $3.20 |
|---|---|
| Visa's limit for credit cards (lower of your cost or 3%) | $3.00 |
| Connecticut's limit | No surcharge allowed |
| Most you could add on this sale | $0.00 |
| Share of your card cost that covers | 0% |
Visa's own rule: Visa's Q&A says U.S. merchants may surcharge credit cards (not debit or prepaid) up to the merchant discount rate for the card or 3%, whichever is lower, must disclose it as a merchant fee at the point of entry, point of sale or checkout and on the receipt, and must notify their acquirer at least 30 days before starting.
This is arithmetic from published rules, not legal advice. Visa's rules apply to credit cards only (not debit or prepaid), require disclosure, and require notice to your processor before you start. Ask your processor before you surcharge.
See the surcharge laws for all states ·Try the surcharge calculator
Sales tax in Connecticut
The state base rate is 6.35%, which we read on the official page (The sales tax rate of 6.35% applies to the retail sale, lease, or rental of most goods). That is the 35 lowest of the 46 states whose base rate we have verified. On a $100 purchase the state tax is $6.35; on a $1,250 purchase it is $79.38.
Local taxes may apply on top of the state rate, and the exact rate depends on the address.
Forming an LLC in Connecticut
The state filing fee for an LLC is $120.00, which is the 29 lowest of the 48 states whose formation fee we have verified.
After that, Connecticut charges $80.00 every year (annual report), so the state fees in the first year are about $200.00.
Connecticut filing office ·How to start an LLC
Paying employees in Connecticut
Connecticut taxes wages with graduated rates, topping out at 6.99%.
As a rough estimate, a single employee paid $2,000 every two weeks would have about $54.42 of Connecticut income tax withheld per paycheck. This is an estimate and does not include credits or local taxes.
Rates per the Connecticut revenue department's official 2026 page.
What this means for a Connecticut business
Plan on absorbing card fees or building them into your prices. A card surcharge is off the table in Connecticut.
Frequently asked questions
Can I add a credit card surcharge in Connecticut?
No. Connecticut's statute prohibits it. Ask your payment processor and a lawyer before changing how you price card payments.
What is the sales tax in Connecticut?
The state base rate is 6.35%. Local taxes may apply.
How much does it cost to form an LLC in Connecticut?
The state filing fee is $120.00.
Other state pages
We publish a state page only when the sales tax rate, the LLC formation fee and the surcharge rule are all verified from official sources.