Connecticut assesses an income tax on its residents. The state has 6 brackets, starting at 3% and going to 6.99%. More on Connecticut taxes can be found in the tabbed pages below.
Personal income tax
On July 1, 2011, tax law changes increased the Connecticut income tax brackets from 3 (3%, 5% and 6.5%) to 6 tax brackets. For the 2015 tax year, the Nutmeg State has 7 tax rates that apply to the following income brackets for single filers or married couples filing separate returns. Married joint filers are taxed at the same rates on double the amount of income.
- 3% on the first $10,000 of taxable income.
- 5% on taxable income between $10,001 and $50,000.
- 5.5% on taxable income between $50,001 and $100,000.
- 6% on taxable income between $100,001 and $200,000.
- 6.5% on all taxable income between $200,001 and $250,000.
- 6.9% on all taxable income between $250,001 and $500,000.
- 6.99% on all taxable income of 500,001 or more.
Connecticut residents must file the personal income tax Form CT-1040 by April 15. When that date falls on a weekend or holiday, filers get until the next business day to submit their state returns.
You may obtain other state tax forms at the Connecticut Department of Revenue Services website.
All wages of a Connecticut resident are subject to the state’s income tax, even when the resident works outside of the state. However, in those cases, Connecticut income tax must be withheld only to the extent the Connecticut tax exceeds the amount withheld by the other jurisdiction.
Because same-sex marriages are now recognized for federal and Connecticut income tax purposes, the filing status options on Connecticut state tax return forms now match the federal filing status options.
Connecticut’s sales tax on the retail sale, lease or rental of most goods increased July 1, 2011, from 6% to 6.35%.
Effective July 1, 2015, the state luxury sales tax increased from 7% to 7.75%. It applies to purchases of most motor vehicles costing more than $50,000; jewelry (real and imitation) costing more than $5,000; and apparel and footwear costing more than $1,000. The clothing tax also applies to handbags, luggage, umbrellas, wallets or watches costing more than $1,000.
Beginning July 1, 2011, a variety of services also are taxed. Among the services now taxed are airport valet parking, yoga instruction, motor vehicle storage and towing, spa treatments and pet grooming, and boarding and obedience services.
On Jan. 1, 2016, the sales tax exemption for home weatherization products was repealed. Those items are once again subject to the state’s sales and use taxes.
Some items and services are not subject to sales and use taxes unless specifically enumerated as taxable by statute. Visit the relevant website for a list of exemptions from sales and use taxes.
There are no additional sales taxes imposed by local jurisdictions.
Personal and real property taxes
All real and personal property located within the state of Connecticut is taxable unless specifically exempted by statute.
The property tax is administered by each city and town in Connecticut. If you have questions about the tax bill or mill rate on your real property (home) or personal property (including your automobile), contact the tax collector in the town in which the property is located.
Oct. 1 is the assessment date for all municipalities. All owners of personal property, other than registered motor vehicles, must file a declaration with the assessor on or before Nov. 1.
A Connecticut resident who made qualifying property tax payments on eligible property may be able to claim a credit against state income tax liability. The maximum property tax credit is $300 per return. Connecticut’s Department of Revenue Services offers an online property tax credit calculator.
Inheritance and estate taxes
Connecticut overhauled its estate, gift and succession (inheritance) tax laws.
Effective for decedents who died on or after Jan. 1, 2011, estate tax is levied on estates valued at $2 million or more. The estate tax ranges from 7.2% on the amount more than $2 million up to 12% on estates worth more than $10.1 million.
Where no Connecticut estate or gift tax is due because of the value of the estate, executors still must file Form CT-706 NT, Connecticut Estate Tax Return (for Nontaxable Estates), with the Connecticut probate court.
Connecticut no longer levies an inheritance (succession) tax, but the state does impose a gift tax.
Other Connecticut tax facts
Through the state’s Taxpayer Service Center, taxpayers can electronically file, pay, view income tax transactions, update account information and check their state refund status. The service is free.
The state maintains an online delinquent taxpayer list.
Connecticut does not levy an intangible personal property tax.
For more information, go to the Connecticut Department of Revenue Services’ website or call (860) 297-5962.
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