--- title: "Connecticut marketplace facilitator law and 1099-K rules" description: "Connecticut marketplaces collect the 6.35% sales tax as the retailer, but in-state sellers using only marketplaces still register (annual filer)." canonical: https://resellerindex.com/tax/states/connecticut/ last_updated: 2026-10-23 publisher: "The Reseller Index" --- [Taxes](https://resellerindex.com/tax/) / [State tax rules](https://resellerindex.com/tax/states/) / Connecticut # Selling on eBay, Poshmark or Etsy from Connecticut: sales tax and 1099-K rules Since December 1, 2018, Conn. Gen. Stat. § 12-408e has made a marketplace facilitator the retailer for each sale it facilitates, so it collects and remits Connecticut's 6.35% sales tax, but the Department of Revenue Services (DRS) says an in-state seller who sells only through a marketplace facilitator is still required to register, on an annual filing frequency. Connecticut has no 1099-K threshold of its own, but DRS requires the state copy of every federal Form 1099-K reporting payments to payees located in Connecticut, filed directly with DRS within 30 days after it goes to the IRS. General information, not tax advice. Check with a tax professional about your own situation. Checked against the official pages listed below on Oct 19, 2026. ## Connecticut in short - **General sales tax:** Yes, 6.35% state rate - **Marketplace facilitator law:** Yes: Conn. Gen. Stat. § 12-408e (P.A. 18-152, § 4), since Dec 1, 2018 - **When a marketplace must collect:** facilitated retail sales by marketplace sellers of at least $250,000 during the prior twelve-month period (§ 12-408e(a)(1)); DRS says that period runs October 1 to September 30 - **Form 1099-K:** Federal test; platforms file a copy with the state ## Who collects the tax on a marketplace sale The marketplace facilitator is considered the retailer of each sale it facilitates on its forum for a marketplace seller, collects and remits the tax on each sale, and is responsible for all obligations under the sales tax chapter as if it were the retailer (§ 12-408e(b)). ### If you sell only through marketplaces DRS guidance OCG-8 says an in-state retailer who only sells through a marketplace facilitator that collects and remits on its behalf is still required to register for sales tax on Form REG-1, checking the box for sales only through a marketplace facilitator, and is set up on an annual filing frequency. A registered seller doesn't collect tax on a facilitated sale, and leaves it out of taxable receipts, if it has a contract with the facilitator or a certificate of collection (Form DRS-055) from it (§ 12-408e(c)). Casual and occasional sellers located in Connecticut who are not running a business aren't required to register. Registration, resale certificates and what changes when you also sell direct have their own page: [Connecticut: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/connecticut/). The law: [Conn. Gen. Stat. § 12-408e (P.A. 18-152, § 4)](https://www.cga.ct.gov/current/pub/chap_219.htm#sec_12-408e), effective Dec 1, 2018. > "A marketplace facilitator shall be considered the retailer of each sale such facilitator facilitates on its forum for a marketplace seller." Connecticut General Assembly, [Connecticut General Statutes, Chapter 219 (Sales and Use Taxes), including § 12-408 and § 12-408e](https://www.cga.ct.gov/current/pub/chap_219.htm), Conn. Gen. Stat. § 12-408e(b)(1) > "You are required to register for sales tax by completing Form REG-1. Select the new box in the sales tax section of Form REG-1 declaring that you make sales only through a marketplace facilitator." Connecticut Department of Revenue Services, [OCG-8, Office of the Commissioner Guidance Regarding Marketplace Facilitators and Marketplace Sellers](https://portal.ct.gov/-/media/DRS/Publications/OCG/OCG-8.pdf?la=en), Question 5 chart, answer for an in-state retailer who only sells through a marketplace facilitator that collects and remits for it > "You will be registered for sales tax on an annual filing frequency." Connecticut Department of Revenue Services, [OCG-8, Office of the Commissioner Guidance Regarding Marketplace Facilitators and Marketplace Sellers](https://portal.ct.gov/-/media/DRS/Publications/OCG/OCG-8.pdf?la=en), Question 5 chart Sources: [Connecticut General Statutes, Chapter 219 (Sales and Use Taxes), including § 12-408 and § 12-408e](https://www.cga.ct.gov/current/pub/chap_219.htm); [OCG-8, Office of the Commissioner Guidance Regarding Marketplace Facilitators and Marketplace Sellers](https://portal.ct.gov/-/media/DRS/Publications/OCG/OCG-8.pdf?la=en); [Registering Your Business with DRS](https://portal.ct.gov/drs/businesses/new-business-resource-center/registering-with-drs). ## Connecticut's sales tax Connecticut's sales tax is imposed on retailers at 6.35% of gross receipts from retail sales of tangible personal property (Conn. Gen. Stat. § 12-408). Sources: [Connecticut General Statutes, Chapter 219 (Sales and Use Taxes), including § 12-408 and § 12-408e](https://www.cga.ct.gov/current/pub/chap_219.htm). ## Form 1099-K: Connecticut and the federal test DRS requires every state copy of federal Form 1099-K reporting payments to payees located, or with locations, in Connecticut. The form is due no later than 30 days after it is filed with the IRS, and must be filed directly with DRS through myconneCT even by payers in the combined federal/state program. Connecticut sets no lower threshold, so the federal test decides which forms exist. > "Federal Form 1099-K reporting payments to payees located or with locations in Connecticut." Connecticut Department of Revenue Services, [Filing Requirements - 1099 and W-2G](https://portal.ct.gov/drs/withholding-taxes/1099s-electronic-filing-req/filing-requirements), General Instructions (state copies DRS requires) The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." ([Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026). The [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k) count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in [Form 1099-K for resellers](https://resellerindex.com/guides/1099-k-for-resellers/). Sources: [Filing Requirements - 1099 and W-2G](https://portal.ct.gov/drs/withholding-taxes/1099s-electronic-filing-req/filing-requirements). ## Worked examples ### An in-state seller with $9,000 a year, all on marketplaces The marketplaces collect the 6.35% tax on each taxable sale ($30 x 6.35% = $1.905, about $1.91, on a $30 item). Under OCG-8 the seller still registers on Form REG-1, checks the marketplace-only box and files annually, and, holding a contract or a DRS-055 certificate of collection from each marketplace, leaves those sales out of its taxable receipts (§ 12-408e(c)). ### Whether DRS gets a copy of your 1099-K With $22,000 in 230 transactions on one marketplace, you pass the federal test (over $20,000 and more than 200), so the marketplace files a 1099-K with the IRS and, because you're located in Connecticut, the state copy with DRS within 30 days. With $18,000 in 400 transactions, the federal dollar test isn't passed and Connecticut sets no lower threshold. ## Edge cases and details - DRS says the twelve-month period for the facilitator's $250,000 threshold runs from October 1 to September 30. - Out-of-state retailers register when, in the 12 months ending September 30, they make 200 or more retail sales into Connecticut and have at least $100,000 in gross receipts from them, according to DRS's current registration page. OCG-8's older chart still shows $250,000. - An out-of-state retailer with inventory in Connecticut on a marketplace facilitator's premises must register for sales tax even if it is under the thresholds, DRS says. - A purchaser who overpaid tax to a marketplace facilitator files a refund claim with DRS and has no cause of action against the facilitator (§ 12-408e(d)). - DRS penalizes a payer that fails to file the state copy of a required 1099-K at $50 per form for the first month plus $50 for each further month, up to $250,000 a year. ## What to do 1. If you're based in Connecticut and sell only through marketplaces, read DRS guidance OCG-8, Question 5, about registering on Form REG-1 as a marketplace-only seller. 2. Ask each marketplace for a certificate of collection (Form DRS-055), or keep the part of your seller agreement that says it collects and remits Connecticut tax. 3. Keep each marketplace's sales report so your annual return and your records match what was collected. 4. Check with a tax professional, or with DRS, about your own registration and filings. ## Common questions ### Do I have to register in Connecticut if I only sell on eBay, Poshmark or Etsy? DRS guidance OCG-8 says an in-state retailer who only sells through a marketplace facilitator that collects and remits on its behalf is still required to register for sales tax on Form REG-1, and is set up as an annual filer. Casual and occasional sellers who aren't running a business aren't required to register. ### Does Connecticut have its own 1099-K threshold? No lower threshold appears on DRS's filing requirements page. It requires the state copy of each federal 1099-K reporting payments to payees located in Connecticut, so the federal test decides which forms are filed. ## Related - [Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules](https://resellerindex.com/tax/states/) - [Connecticut: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/connecticut/) - [Colorado: sales tax and 1099-K rules](https://resellerindex.com/tax/states/colorado/) - [Delaware: sales tax and 1099-K rules](https://resellerindex.com/tax/states/delaware/) - [Form 1099-K for resellers: the federal test](https://resellerindex.com/guides/1099-k-for-resellers/) - [Do eBay's fees apply to the sales tax a buyer pays?](https://resellerindex.com/guides/ebay-fees-on-sales-tax/) - [Where each selling app keeps its sales report](https://resellerindex.com/guides/sales-reports-for-taxes/) ## General information, not tax advice This page summarizes Connecticut's own published pages and statutes as read on Oct 19, 2026, and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department. ## Sources Official pages this page is built from, with the day each was read. - Connecticut General Assembly: [Connecticut General Statutes, Chapter 219 (Sales and Use Taxes), including § 12-408 and § 12-408e](https://www.cga.ct.gov/current/pub/chap_219.htm); read Oct 19, 2026. 6.35% rate; marketplace facilitator definition, retailer rule, seller relief, refunds; P.A. 18-152 effective December 1, 2018. - Connecticut Department of Revenue Services: [OCG-8, Office of the Commissioner Guidance Regarding Marketplace Facilitators and Marketplace Sellers](https://portal.ct.gov/-/media/DRS/Publications/OCG/OCG-8.pdf?la=en); read Oct 19, 2026. Registration chart for marketplace sellers, annual filing frequency, October-September threshold period, DRS-055. - Connecticut Department of Revenue Services: [Registering Your Business with DRS](https://portal.ct.gov/drs/businesses/new-business-resource-center/registering-with-drs); read Oct 19, 2026. Current out-of-state thresholds; inventory on a facilitator's premises; link to OCG-8. - Connecticut Department of Revenue Services: [Filing Requirements - 1099 and W-2G](https://portal.ct.gov/drs/withholding-taxes/1099s-electronic-filing-req/filing-requirements); read Oct 19, 2026. State copy of Form 1099-K for Connecticut payees, 30-day due date, direct filing through myconneCT, penalties. - IRS: [Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026. The federal 1099-K test. - IRS: [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k), reviewed Jun 1, 2026. 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