---
title: "Connecticut LLC Taxes: What You'll Actually Owe in 2026 | LLC Attorney"
description: "How Connecticut LLC taxes work in 2026: graduated income tax up to 6.99%, no standalone entity tax, the flat 6.35% statewide sales tax, the $80 Annual Report, and the S-Corp election."
canonical: https://llcattorney.com/states/ct/llc-taxes-connecticut
image: https://llcattorney.com/images/share-cover.png
source_path: /states/ct/llc-taxes-connecticut
---

Key Takeaways

-   Connecticut taxes LLC pass-through income at Graduated, 7 brackets from 2% to 6.99%
-   Connecticut imposes no separate entity-level franchise tax on standard LLCs
-   Sales Tax: 6.35%
-   Annual Report due Annually, between January 1 and March 31, $80 (raised from $20 in July 2020) fee
-   Federal self-employment tax of 15.3% applies to net LLC profit regardless of state
-   Connecticut recognizes the federal S-corp election with no separate state-level S-corp surtax beyond the general Pass-Through Entity Tax mechanics available to all pass-through entities.
-   Same-day formation and compliance filing available through LLC Attorney at no markup on state fees

Connecticut repealed its old franchise-style Business Entity Tax back in 2020, leaving LLCs here with no mandatory entity-level tax at all — just an $80 Annual Report and a graduated personal income tax topping out at 6.99%. Sales tax is genuinely simple, too: a single flat 6.35% rate statewide, with no local add-ons anywhere.

This guide covers exactly what a Connecticut LLC owes in 2026 — state and federal tax obligations, the now-elective Pass-Through Entity Tax and its SALT-cap benefit, the exemption phase-out that complicates Connecticut's effective tax rate for higher earners, and when an S-Corp election is worth the added complexity.

6.99%Top state income tax rate

6.35%Flat statewide sales tax, no local add-on

$80Annual Report fee

0Mandatory franchise/entity tax

## Connecticut Personal Income Tax on LLC Profit

By default, a Connecticut LLC is a pass-through entity — the LLC itself doesn't pay federal income tax. Profit flows through to the owners' personal returns and is taxed at Connecticut's graduated rates up to 6.99%, with the personal exemption phase-out and recapture provision meaning higher-earning owners should model their actual effective rate carefully rather than assuming the marginal bracket applies cleanly.

**Connecticut's rate: Graduated, 7 brackets from 2% to 6.99%**

For single filers (2026): 2% up to $10,000; 4.5% up to $50,000; 5.5% up to $100,000; 6% up to $200,000; 6.5% up to $250,000; 6.9% up to $500,000; 6.99% above $500,000 (married filing jointly brackets are roughly double, with the top rate applying above $1,000,000).

Connecticut has no standard deduction — instead, a personal exemption ($15,000 single / $24,000 MFJ) that phases out quickly above $30,000/$48,000, plus a 'tax recapture' provision that can push effective rates above the stated marginal bracket for higher earners. This makes Connecticut's real effective rate less intuitive than the bracket table alone suggests.

## Does Connecticut Charge an Entity-Level Franchise Tax?

Connecticut has no mandatory entity-level tax or minimum fee on LLCs — the old $250 Business Entity Tax was repealed in 2020 and nothing has replaced it. The only entity-level tax that touches a Connecticut LLC is the optional Pass-Through Entity Tax election at 6.99%, due March 15, which owners elect only when it benefits their personal federal SALT-cap planning. An LLC that elects C-corp taxation instead faces Connecticut's 7.5% corporate income tax (with a 10% surtax pushing the effective rate to roughly 8.25% for entities earning over $100 million — not relevant to most small LLCs).

## Connecticut Sales Tax

Connecticut is genuinely simpler here than most states in this guide: there are no local sales taxes anywhere in the state — 6.35% is the rate everywhere, with no county or city layering on top. A few categories carry special rates worth knowing: 1% on computer and data-processing services, 7.75% on certain luxury goods, and 4.5% on most motor vehicle sales. Most retailers of tangible personal property and specifically enumerated services need to register and collect.

-   State rate: **6.35%**
-   Registration: myconneCT registration with the Department of Revenue Services, No fee fee with the Connecticut Department of Revenue Services
-   The DRS assigns your filing frequency based on your reported sales tax volume, filed through the myconneCT online portal.

## Connecticut Annual Report Requirement

Connecticut requires every LLC to file Annual Report with the Connecticut Secretary of the State, due Annually, between January 1 and March 31. Filing fee: $80 (raised from $20 in July 2020).

The Annual Report is filed online through Connecticut's Business One Stop portal (which replaced the older CONCORD system in 2021), with the first report due the year following formation. As with most states, nonpayment of any required state fee risks loss of good standing and eventual administrative dissolution the longer it's neglected — confirm the current late-fee schedule directly with the Secretary of the State when a filing is overdue.

Reinstating a dissolved Connecticut LLC requires filing all delinquent Annual Reports and resolving any outstanding fees through the Secretary of the State's Business One Stop portal.

## Federal Self-Employment Tax and How Your Connecticut LLC Is Classified

Regardless of which state you're in, LLC owners who materially participate in the business owe federal self-employment tax — 15.3% on net profit, covering Social Security (up to the $184,500 (2026) wage base) and Medicare (no cap).

### Single-Member LLCs

A single-member Connecticut LLC defaults to a disregarded entity for federal tax purposes — you report income and expenses on Schedule C of your personal Form 1040 and compute self-employment tax on Schedule SE. Connecticut adds its graduated income tax on top, with no separate entity-level tax unless the PET election is made.

### Multi-Member LLCs

A multi-member Connecticut LLC defaults to partnership taxation, filing Form 1065 and issuing each member a Schedule K-1. Connecticut has no separate filing consequence tied to member count, though multi-member LLCs are the more common candidates for the optional Pass-Through Entity Tax election.

## Should Your Connecticut LLC Elect S-Corp Taxation?

An S-Corp election lets you split LLC profit into a reasonable salary (payroll-taxed) and shareholder distributions (not subject to self-employment tax), once the business is consistently profitable enough to justify the added payroll complexity.

**Connecticut's treatment:** Connecticut recognizes the federal S-corp election with no separate state-level S-corp surtax beyond the general Pass-Through Entity Tax mechanics available to all pass-through entities.

With Connecticut's graduated rate topping out at 6.99%, the S-corp savings calculus is meaningfully favorable — both federal self-employment tax savings from the election itself, and, if the entity elects the Pass-Through Entity Tax, an additional SALT-cap workaround that can stack with the S-corp election for owners who itemize federally.

## Connecticut LLC Tax Costs at a Glance

Tax / Fee

Amount

Notes

Annual Report

$80 (raised from $20 in July 2020)

Due Annually, between January 1 and March 31; late penalty applies if missed

Sales Tax

6.35%

State-level rate

Federal self-employment tax

15.3%

Applies to net profit up to the $184,500 (2026) Social Security wage base (Medicare portion has no cap)

State personal income tax (on your share of LLC profit)

Graduated, 7 brackets from 2% to 6.99%

Connecticut has no standard deduction — instead, a personal exemption ($15,000 single / $24,000 MFJ) that phases out quickly above $30,000/$48,000, plus a 'tax recapture' provision that can push effective rates above the stated marginal bracket for higher earners. This makes Connecticut's real effective rate less intuitive than the bracket table alone suggests.

Connecticut registered agent (professional service)

$49–$300/yr

LLC Attorney service available

## How to Handle Your Connecticut LLC's Taxes

### If You Do It Yourself

**Step 1 — Get your federal EIN before anything else.**

Apply for your EIN for free directly at irs.gov — a purely federal application with no Connecticut-specific step.

**Step 2 — Confirm your default federal tax classification.**

A single-member LLC defaults to a disregarded entity (Schedule C); a multi-member LLC defaults to partnership taxation (Form 1065 plus Schedule K-1 for each member). Neither requires a separate election — this is automatic unless you file Form 8832 or Form 2553 to change it.

**Step 3 — Register with the Connecticut Department of Revenue Services (DRS) if required for state income tax withholding or estimated payments.**

Connecticut has no standard deduction — instead, a personal exemption ($15,000 single / $24,000 MFJ) that phases out quickly above $30,000/$48,000, plus a 'tax recapture' provision that can push effective rates above the stated marginal bracket for higher earners. This makes Connecticut's real effective rate less intuitive than the bracket table alone suggests.

**Step 4 — Register for sales tax if you sell taxable goods or services.**

File myconneCT registration with the Department of Revenue Services with the Connecticut Department of Revenue Services at portal.ct.gov/drs (myconneCT), No fee fee. The DRS assigns your filing frequency based on your reported sales tax volume, filed through the myconneCT online portal.

**Step 5 — Register for payroll/reemployment tax the moment you hire your first employee.**

The moment you hire your first employee, register with the Connecticut Department of Labor. New-employer unemployment insurance rates and the taxable wage base are set annually — confirm the current figures directly with the Department of Labor when you register, since they're adjusted each year.

**Step 6 — Set up quarterly estimated tax payments.**

If you expect to owe $1,000 or more in combined federal and Connecticut tax for the year, both the IRS and the DRS expect quarterly estimated payments covering income tax and federal self-employment tax on your LLC profit.

**Step 7 — File your Annual Report every Connecticut deadline.**

Annual Report is due Annually, between January 1 and March 31 with the Connecticut Secretary of the State, $80 (raised from $20 in July 2020) fee.

**Step 8 — Decide whether an S-Corp election makes sense once your LLC is consistently profitable.**

With Connecticut's graduated rate topping out at 6.99%, the S-corp savings calculus is meaningfully favorable — both federal self-employment tax savings from the election itself, and, if the entity elects the Pass-Through Entity Tax, an additional SALT-cap workaround that can stack with the S-corp election for owners who itemize federally.

**Step 9 — Watch for Connecticut-specific tax traps.**

Connecticut's single statewide 6.35% sales tax rate — with no local add-ons anywhere — is genuinely simpler than most states in this guide, a real positive differentiator worth knowing if you're comparing states. The personal exemption phase-out and 'recapture' provision are distinctive mechanisms that can surprise higher earners expecting a simpler marginal-rate calculation than what actually applies. Also worth knowing: Connecticut's Pass-Through Entity Tax flipped from mandatory to elective starting with tax years beginning in 2024, so older content describing it as required is now outdated.

**Step 10 — Keep business and personal finances completely separate.**

Commingling funds is the single biggest reason courts pierce the LLC liability shield, and it also makes tax preparation far more error-prone. Run all business income and expenses through a dedicated business bank account and keep receipts.

Ready to Launch Your Business in Connecticut?Follow our fast, easy process to get started right now.[Start My Business](https://app.llcattorney.com/formation?intake_type=formation)

### If LLC Attorney Does It for You

1.  Submit your information at llcattorney.com — entity classification, expected revenue, and whether you'll be hiring employees or collecting sales tax.
2.  LLC Attorney obtains your EIN, registers you with the Connecticut Department of Revenue Services (DRS) and Connecticut Department of Revenue Services as needed, and sets up your compliance calendar for Annual Report.
3.  Receive reminders before every deadline through your client portal, plus access to flat-fee attorney consultations (no retainer) when an S-Corp election or multi-state question needs a licensed professional's judgment call.

## When Should You Talk to a Tax Professional About Your Connecticut LLC?

Connecticut's tax picture is manageable, but a CPA is worth consulting to model whether the recapture provision meaningfully raises your effective rate at your income level, to decide whether the now-elective Pass-Through Entity Tax makes sense for your ownership structure, and to determine whether your profit level justifies an S-Corp election.

## What You Actually Get With LLC Attorney's Connecticut Compliance Service

Connecticut's Pass-Through Entity Tax switched from mandatory to elective in 2024 — a change that's easy to miss if you're relying on older guidance. LLC Attorney's Connecticut service keeps your entity's tax elections current with the law as it actually stands today.

-   EIN obtained for you at no extra charge.
-   State tax and sales tax registration handled as part of formation, starting at $49.
-   An ongoing compliance subscription (available through an ongoing compliance subscription — contact LLC Attorney for current pricing) tracks every Connecticut deadline — Annual Report, and registered agent renewal.
-   Access to professionally trained Business Success Advisors at no charge, plus flat-fee attorney consultations (no retainer) for S-Corp election analysis and multi-state nexus questions.

Connecticut's rules have shifted meaningfully in recent years — from the repealed Business Entity Tax to the now-elective PET — and LLC Attorney keeps your Connecticut LLC's filings aligned with the current law, not outdated guidance.

## Get Your Connecticut LLC's Taxes Set Up Correctly

Getting your EIN, tax registrations, and compliance calendar right from day one prevents expensive corrections later. LLC Attorney's Connecticut formation service starts at $49, and an ongoing compliance subscription (available through an ongoing compliance subscription — contact LLC Attorney for current pricing) keeps you ahead of every deadline after that. See our [full pricing](/pricing) for all service tiers.

Ready to Launch Your Business in Connecticut?Follow our fast, easy process to get started right now.[Start My Connecticut LLC](https://app.llcattorney.com/formation?intake_type=formation)

## Frequently Asked Questions

### Does my Connecticut LLC have to pay franchise tax?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

No standalone franchise or entity tax exists today — Connecticut repealed its old $250 biennial Business Entity Tax effective 2020. The main recurring state-level cost is the $80 Secretary of the State Annual Report. Connecticut does offer an elective Pass-Through Entity Tax at 6.99% as a SALT-cap workaround, but it's optional, not required.

### Do I need to collect sales tax in Connecticut?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

Only if you sell taxable tangible personal property or enumerated services. Register for free through myconneCT, then collect Connecticut's single statewide rate of 6.35% — there's no local sales tax layer anywhere in the state, one of the simpler sales tax structures in the country. A few categories (computer services, luxury goods, motor vehicles) carry different special rates.

### What is the Connecticut Annual Report and when is it due?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

Every Connecticut LLC files an Annual Report with the Secretary of the State, due between January 1 and March 31 each year, through the Business One Stop portal, for an $80 fee.

### What happens if I miss a Connecticut LLC tax or filing deadline?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

Connecticut's specific late-fee schedule for a missed Annual Report is best confirmed directly with the Secretary of the State when a filing is overdue — as with most states, prolonged non-filing risks loss of good standing and eventual administrative dissolution, with reinstatement requiring all delinquent reports and fees to be resolved.

### Should my Connecticut LLC elect S-Corp taxation?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

It depends on your profit level. Connecticut's graduated rate topping out at 6.99% means S-Corp election meaningfully reduces federal self-employment tax exposure, and pairing it with the now-elective Pass-Through Entity Tax can add a further SALT-cap benefit for owners who itemize federally.

### How is a single-member LLC taxed in Connecticut?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

A single-member Connecticut LLC defaults to a disregarded entity for federal tax purposes — you report income on Schedule C and pay self-employment tax via Schedule SE. Connecticut adds its graduated income tax (up to 6.99%) on top at the personal level, with no separate entity-level tax unless you elect the Pass-Through Entity Tax.

### I operate in multiple states — which state's taxes apply to my LLC?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

If your LLC does business in a state other than the one it's formed in — an office, employees, inventory, or significant sales there — you may have created nexus requiring registration and tax obligations in that state too. This is fact-specific and worth a conversation with a tax professional if you operate in multiple states.

### How much will I actually pay in taxes on my Connecticut LLC?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

For a typical Connecticut LLC with in-state owners and no employees: a graduated state income tax up to 6.99% on your share of profit (watch the exemption phase-out and recapture provision at higher incomes), no mandatory entity tax, just the $80 Annual Report, plus federal income tax and 15.3% federal self-employment tax (up to the $184,500 Social Security wage base for 2026). Add the flat 6.35% sales tax only if you sell taxable goods or services — no local rate to layer on.

### Does LLC Attorney help with LLC tax compliance?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

Yes. LLC Attorney's ongoing compliance subscription tracks your Connecticut filing deadlines, handles your Annual Report, and connects you with flat-fee attorney consultations (no retainer) when a tax question needs a licensed professional's judgment call.

## Learn More About Connecticut

-   [Connecticut LLC Formation](/states/ct/llc-formation-connecticut)
-   [Connecticut Registered Agent](/states/ct/registered-agent-connecticut)