Taxes in Connecticut
Connecticut State Tax Quick Facts
- Income tax: 3% - 6.99%
- Sales tax: 6.35%
- Property tax: 2.15% effective rate
- Gas tax: 25 cents per gallon of regular gasoline, 49.20 cents per gallon of diesel
The state of Connecticut generates most of its revenue through an individual income tax and a statewide sales tax. Income tax rates range from 3% to 6.99%; that top rate ranks above the U.S. average. The sales tax rate of 6.35% is also high relative to other statewide rates, but because there are no local sales taxes in Connecticut, that is the maximum rate levied anywhere in the state. That makes Connecticut among the more tax-friendly states for shoppers.
Since there are no local income or sales taxes in Connecticut, local governments must collect most of their revenue through property taxes. That is reflected in the state’s high effective property tax rates. In fact, the typical Connecticut homeowner pays $6,153 annually in property taxes.
A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Connecticut Income Taxes
Connecticut’s personal income tax is a relatively recent development. More specifically, up until 1991, only capital gains, interest and dividends were taxed. For tax year 2023, those income sources, as well as wages and salaries, are taxed at marginal rates between 3% and 6.99%. The rates paid by a particular taxpayer are determined by tax brackets, as shown in the table below.
Income Tax Brackets
- Single Filers
- Married, Filing Jointly
- Married, Filing Separately
- Head of Household
| Single Filers | |
| Connecticut Taxable Income | Rate |
|---|---|
| $0 - $10,000 | 3.00% |
| $10,000 - $50,000 | 5.00% |
| $50,000 - $100,000 | 5.50% |
| $100,000 - $200,000 | 6.00% |
| $200,000 - $250,000 | 6.50% |
| $250,000 - $500,000 | 6.90% |
| $500,000+ | 6.99% |
| Married, Filing Jointly | |
| Connecticut Taxable Income | Rate |
|---|---|
| $0 - $20,000 | 3.00% |
| $20,000 - $100,000 | 5.00% |
| $100,000 - $200,000 | 5.50% |
| $200,000 - $400,000 | 6.00% |
| $400,000 - $500,000 | 6.50% |
| $500,000 - $1,000,000 | 6.90% |
| $1,000,000+ | 6.99% |
| Married, Filing Separately | |
| Connecticut Taxable Income | Rate |
|---|---|
| $0 - $10,000 | 3.00% |
| $10,000 - $50,000 | 5.00% |
| $50,000 - $100,000 | 5.50% |
| $100,000 - $200,000 | 6.00% |
| $200,000 - $250,000 | 6.50% |
| $250,000 - $500,000 | 6.90% |
| $500,000+ | 6.99% |
| Head of Household | |
| Connecticut Taxable Income | Rate |
|---|---|
| $0 - $16,000 | 3.00% |
| $16,000 - $80,000 | 5.00% |
| $80,000 - $160,000 | 5.50% |
| $160,000 - $320,000 | 6.00% |
| $320,000 - $400,000 | 6.50% |
| $400,000 - $800,000 | 6.90% |
| $800,000+ | 6.99% |
For tax year 2024, the 3% rate for the lowest tax bracket will decrease to 2%. Meanwhile, the 5% rate applied to the next bracket will fall to 4.5%.
These tax rates are based on Connecticut taxable income, which is derived from your federal adjusted gross income (AGI). To arrive at Connecticut taxable income, generally all that needs to be done is to subtract the Connecticut personal exemption from federal AGI. Consider looking into tax preparation software like TaxAct and TaxSlayer to help file your taxes.
The personal exemption in Connecticut can be as much as $24,000, depending on filing status and income. In general, exemptions decline as total annual wages or salary grows. The table below shows the personal exemptions based on filing status and total annual wages for taxpayers in Connecticut. Note that this is not based on taxable income (i.e. income after deductions and exemptions), but rather total wages. For joint filers, these apply to each spouse’s income separately, and can be claimed for both spouses, if both are working.
Connecticut Personal Exemptions
- Single Filers
- Married, Filing Jointly
- Married, Filing Separately
- Head of Household
| Single Filers | |
| Total Annual Wages | Personal Exemption Amount |
|---|---|
| $0 - $30,000 | $15,000 |
| $30,001 - $31,000 | $14,000 |
| $31,001 - $32,000 | $13,000 |
| $32,001 - $33,000 | $12,000 |
| $33,001 - $34,000 | $11,000 |
| $34,001 - $35,000 | $10,000 |
| $35,001 - $36,000 | $9,000 |
| $36,001 - $37,000 | $8,000 |
| $37,001 - $38,000 | $7,000 |
| $38,001 - $39,000 | $6,000 |
| $39,001 - $40,000 | $5,000 |
| $40,001 - $41,000 | $4,000 |
| $41,001 - $42,000 | $3,000 |
| $42,001 - $43,000 | $2,000 |
| $43,001 - $44,000 | $1,000 |
| $44,001+ | $0 |
| Married, Filing Jointly | |
| Total Annual Wages | Personal Exemption Amount |
|---|---|
| $0 - $48,000 | $24,000 |
| $48,001 - $49,000 | $23,000 |
| $49,001 - $50,000 | $22,000 |
| $50,001 - $51,000 | $21,000 |
| $51,001 - $52,000 | $20,000 |
| $52,001 - $53,000 | $19,000 |
| $53,001 - $54,000 | $18,000 |
| $54,001 - $55,000 | $17,000 |
| $55,001 - $56,000 | $16,000 |
| $56,001 - $57,000 | $15,000 |
| $57,001 - $58,000 | $14,000 |
| $58,001 - $59,000 | $13,000 |
| $59,001 - $60,000 | $12,000 |
| $60,001 - $61,000 | $11,000 |
| $61,001 - $62,000 | $10,000 |
| $62,001 - $63,000 | $9,000 |
| $63,001 - $64,000 | $8,000 |
| $64,001 - $65,000 | $7,000 |
| $65,001 - $66,000 | $6,000 |
| $66,001 - $67,000 | $5,000 |
| $67,001 - $68,000 | $4,000 |
| $68,001 - $69,000 | $3,000 |
| $69,001 - $70,000 | $2,000 |
| $70,001 - $71,000 | $1,000 |
| $71,001+ | $0 |
| Married, Filing Separately | |
| Total Annual Wages | Personal Exemption Amount |
|---|---|
| $0 - $24,000 | $12,000 |
| $24,001 - $25,000 | $11,000 |
| $25,001 - $26,000 | $10,000 |
| $26,001 - $27,000 | $9,000 |
| $27,001 - $28,000 | $8,000 |
| $28,001 - $29,000 | $7,000 |
| $29,001 - $30,000 | $6,000 |
| $30,001 - $31,000 | $5,000 |
| $31,001 - $32,000 | $4,000 |
| $32,001 - $33,000 | $3,000 |
| $33,001 - $34,000 | $2,000 |
| $34,001 - $35,000 | $1,000 |
| $35,001+ | $0 |
| Head of Household | |
| Total Annual Wages | Personal Exemption Amount |
|---|---|
| $0 -$38,000 | $19,000 |
| $38,001 - $39,000 | $18,000 |
| $39,001 - $40,000 | $17,000 |
| $40,001 - $41,000 | $16,000 |
| $41,001 - $42,000 | $15,000 |
| $42,001 - $43,000 | $14,000 |
| $43,001 - $44,000 | $13,000 |
| $44,001 - $45,000 | $12,000 |
| $45,001 - $46,000 | $11,000 |
| $46,001 - $47,000 | $10,000 |
| $47,001 - $48,000 | $9,000 |
| $48,001 - $49,000 | $8,000 |
| $49,001 - $50,000 | $7,000 |
| $50,001 - $51,000 | $6,000 |
| $51,001 - $52,000 | $5,000 |
| $52,001 - $53,000 | $4,000 |
| $53,001 - $54,000 | $3,000 |
| $54,001 - $55,000 | $2,000 |
| $55,001 - $56,000 | $1,000 |
| $56,001+ | $0 |
Connecticut Tax Credits
Connecticut is different from other states in that it treats personal exemptions for state taxes as credits. That means instead of deducting an amount from taxable income, Connecticut residents reduce their tax liability after it has been calculated.
In general, Connecticut uses tax credits instead of deductions. Among these are the Connecticut Earned Income Tax Credit (CT EITC), which mirrors the federal credit, and the Property Tax Credit, up to $300 for eligible Connecticut homeowners with property tax liability.
Connecticut Sales Tax
Connecticut has a single, statewide sales tax, and no local sales taxes. Regardless of where you are in the state, you will pay 6.35% on most goods and some services. Additionally, the sales tax rate jumps to 7.75% for the sale of more than $50,000 of most cars.
Connecticut does not tax most types of food typically purchased in a grocery store. Items like fruit, meat, pasta, rice, salsa and bread are nontaxable. However, many types of food in single-serving packages, like small bags of chips or cookies, are taxable, as are candy and soda. Prepared food of any kind is also taxable.
Connecticut Property Tax
There are just eight counties in Connecticut, but average property taxes rates in each of these exceed 1.81% annually. The highest average property taxes in the state are in Fairfield County, where typical homeowners pay $8,139 annually. However, since homes there are also worth more than elsewhere in the state, property taxes as a percentage of home value are just below the state’s average of 1.84%.
Thinking of financing a new home or refinancing your current home in Connecticut? Take a moment to look at our Connecticut mortgage guide, where you will find information on rates and getting a mortgage in Connecticut.
Connecticut Estate Tax
Like many states in the Northeast, Connecticut has its own tax on estates. The state's lifetime exemption limit mirrors the federal limit. For tax year 2023, the first $12.92 million of an estate is exempt from estate tax. That limit rises to $13.61 million for tax year 2024.
However, estates that exceed these limits will pay a 12% tax on their taxable value above the exemption. So, if a person dies in 2023 with an estate worth $15 million, the Connecticut estate tax will apply to $2.08 million of its value.
Connecticut Gas Tax
The state gas tax on regular fuel in Connecticut is 25 cents per gallon. That’s near the middle of the pack on a national scale. The tax on diesel fuel ranks much higher, though, at 49.20 cents per gallon.
Connecticut Capital Gains Tax
Capital gains are taxed as regular income in Connecticut, which means they face a top rate of 6.99%.
Connecticut Cigarette Tax
Connecticut has one of the highest cigarette taxes in the nation at $3.90 per pack.
Connecticut Alcohol Tax
The state reduced its alcohol tax rates in 2023. The total tax on liquor adds up to $5.94 per gallon. The tax on wine is $0.20 per gallon and the tax on beer is $0.19 per gallon.
- “Yankee Doodle” is the official state song of Connecticut.
- Author Mark Twain lived in Hartford Connecticut for 20 years. He published both of his most famous works (The Adventures of Tom Sawyer and The Adventures of Huckleberry Finn) during that period.
- The Ivy League’s Yale University is located in New Haven, Connecticut.
