Are information services taxable in Connecticut?
Yes, but the rate depends on what is sold. AgentTax applies 6.35% to information services in Connecticut. Selling access to a database, or retrieving information for a customer, is a computer and data processing service in Connecticut, and that is taxed at 1%.
| Short answer | 6.35%, or 1% for database access |
|---|---|
| Authority | Conn. Gen. Stat. § 12-407; Conn. Gen. Stat. § 12-408(1)(D)(i); Conn. Agencies Regs. § 12-426-27(b)(1) |
| Last reviewed | 2026-09-30 |
Why
Connecticut taxes computer and data processing services at 1% and most other enumerated services at the 6.35% general rate (Conn. Gen. Stat. § 12-407). AgentTax's position is to charge information services other than database access at the full 6.35% rate, the conservative reading.
The 1% caveat for database access comes from Connecticut's own rules. Conn. Gen. Stat. § 12-408(1)(D)(i) taxes computer and data processing services at 1%. Conn. Agencies Regs. § 12-426-27(b)(1) defines those services to include storing and filing of information and retrieving or providing access to information. So an online database or information-retrieval product sold in Connecticut is generally taxed at 1%, not 6.35%.
AgentTax routes AI research output to information services. Classification is the most consequential call in Connecticut: the same AI work taxed as data processing would carry 1%, a gap of 5.35 points.
Business vs. consumer buyers
Connecticut is one of the states where buyer type can change the SaaS answer. For this category, the answer above applies to business and consumer buyers alike.
Where the line is
- Access to a database or an information-retrieval service is computer and data processing at 1% (Conn. Agencies Regs. § 12-426-27(b)(1)).
- Processing the buyer's own data and returning it is data processing at 1%, not an information service.
How AgentTax classifies information services
Selling access to compiled information: databases, research products, reports and data feeds the seller assembles and furnishes to many customers. AgentTax routes AI research work to its information service category.
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Open the calculatorFrequently asked questions
- Are information services taxable in Connecticut?
- Yes. AgentTax applies 6.35% to information services. Database access and information retrieval are computer and data processing services under Connecticut's regulations, taxed at 1% under Conn. Gen. Stat. § 12-408(1)(D)(i).
- Is a subscription database taxable in Connecticut?
- Yes, generally at 1%. Providing access to information is a computer and data processing service in Connecticut, and that category is taxed at 1% rather than the 6.35% general rate.
Related
- All Connecticut digital tax answers
- Is SaaS taxable in Connecticut? (full guide)
- Is data processing taxable in Connecticut?
- Are professional services taxable in Connecticut?
- Information services: every state we cover
- Are information services taxable in Arkansas?
- Are information services taxable in California?
- Are information services taxable in Florida?
- Are information services taxable in Georgia?
- Are information services taxable in Idaho?
- Are information services taxable in Illinois?
Sources
- Conn. Gen. Stat. § 12-407
- Conn. Gen. Stat. § 12-408(1)(D)(i)
- Conn. Agencies Regs. § 12-426-27(b)(1)
This page is for informational purposes only and is not tax, legal, or accounting advice. It reflects AgentTax's current interpretation of evolving law, which can change. Consult a qualified tax professional before making compliance decisions. Positions on this page come from the AgentTax tax policy registry (v1.24.0); see our methodology.