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Dec 17, 2024

How do Connecticut's new sales tax exemptions for children's clothing and over-the-counter medications impact family expenses?

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In 2024, Connecticut implemented key sales tax exemptions aimed at easing financial burdens for families and promoting essential purchases. Notably, the state introduced an exemption for children’s clothing and footwear priced under $100, effective January 1. Previously, items above $50 were taxed, making essential apparel a significant expense for families. This exemption allows parents to purchase necessary clothing and footwear for their children without the additional tax burden, enhancing affordability and supporting family budgets.

Another significant change is the exemption for certain over-the-counter medications without prescriptions, effective July 1. In 2023, all such medications were taxed at the standard rate, increasing healthcare costs for families. By exempting these essential health products, Connecticut alleviates the financial strain on households, ensuring access to necessary medications without extra costs.

Additionally, the state expanded the tax-free week for back-to-school shopping from one to two weeks in August. This extension provides families with more flexibility and time to purchase school supplies and clothing without incurring sales tax, promoting better budgeting and reducing the stress of preparing for the school year.

Furthermore, the tax rate on prepared meals was decreased from 7.35% to 6.35% on January 1, 2024. This reduction makes dining out more affordable for families, encouraging social interactions and supporting the local restaurant industry.

These exemptions collectively demonstrate Connecticut’s commitment to supporting families by reducing the tax burden on essential and beneficial purchases. By making necessary items more affordable, the state fosters a more inclusive and economically supportive environment for all residents.

Ready to automate your sales tax?

Ready to automate your sales tax?

Ready to automate your sales tax?

Ready to automate your sales tax?