If you`re planning on hiring a contractor in Connecticut, you may be wondering if they charge sales tax. The answer isn`t necessarily straightforward, but here`s what you need to know.
First off, it`s important to understand that Connecticut imposes a sales tax on most goods and services. This tax is currently set at 6.35%, but some municipalities may also charge their own additional tax.
When it comes to contractors specifically, whether or not they charge sales tax depends on the type of work they`re performing. In general, contractors who are working on new construction or major renovations will usually charge sales tax on their services. This includes things like building a new home, adding an addition to an existing home, or performing extensive remodeling work.
However, if the contractor is performing repairs, maintenance, or minor renovations, they may not charge sales tax. For example, if you hire a contractor to fix a leaky roof or repair some damaged drywall, they likely won`t charge sales tax on their services.
It`s also worth noting that if you`re hiring a contractor who is based outside of Connecticut, they may not charge sales tax on their services. However, if you`re purchasing materials for the project from a Connecticut-based supplier, you may still be required to pay sales tax on those materials.
Ultimately, if you`re unsure whether or not a contractor will charge sales tax on their services, it`s best to ask them directly. They should be able to provide you with a clear answer based on the specifics of your project.
In conclusion, contractors in Connecticut may or may not charge sales tax on their services, depending on the type of work they`re performing. It`s important to clarify with the contractor upfront whether or not they will be charging sales tax, so you can budget accordingly for your project.