State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2021

Connecticut State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.

Connecticut

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The Bottom Line
Flag of Connecticut

Least Tax-Friendly

The Constitution State is an expensive place to live. Connecticut's median property tax rate is the third-highest in the U.S. Income taxes are above average, too. Plus, starting in 2021, most Connecticut employers also began collecting a 0.5% payroll tax to fund the state's paid family and medical leave program. The one good thing is that sales taxes are on below average in the state (partly because there are no local sales taxes).

Income Tax Range

Low: 3% (on up to $20,000 of taxable income for married joint filers and up to $10,000 for those filing individually)

High: 6.99% (on the amount over $1 million for married joint filers and over $500,000 for those filing individually)

Sales Tax

The state taxes most items at 6.35%, and localities are not allowed to add to that.

Groceries: Exempt
Clothing: Taxable (6.35% for items under $1,000; 7.75% for items over $1,000; items costing less than $50 are fully exempt)
Motor Vehicles: Taxable (6.35% for vehicles under $50,000; 7.75% for vehicles over $50,000; 4.5% for non-resident military personnel on full-time active duty in the state)
Prescription Drugs: Exempt

Real Property Taxes

In Connecticut, the median property tax rate is $2,133 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 35.75¢ per gallon.
Diesel: 40.1¢ per gallon.

Sin Taxes

Cigarettes and little cigars: $4.35 per pack
Snuff: $3 per ounce
Chewing and smoking tobacco: 50% of the wholesale price
Cigars: 50% of the wholesale price ($0.50 cap)
Vapor products: $0.40 per ml for closed systems, 10% of wholesale price for other vapor products.

Beer: $0.23 per gallon ($0.19 per gallon effective July 1, 2023)
Wine: $0.79 per gallon ($1.98 for sparkling wine)
Liquor: $5.95 per gallon

Marijuana: State retail tax at rate of $0.00625 per milligram of total THC for cannabis plant material, $0.0275 per milligram of total THC for cannabis edible products, and $0.009 per milligram of total THC for other cannabis products; municipal tax of 3%; general state sales tax

Annual Car Taxes and Fees

An annual vehicle property tax is imposed. The rates are set by individual municipalities. Motor vehicle assessments are based on 70% of the average retail value as determined by the local assessor.

Estate and Inheritance Taxes

Connecticut has an estate tax with a $9.1 million exemption for 2022 (the Connecticut exemption amount will equal the federal estate tax exemption amount beginning in 2023). The tax due is limited to $15 million.

Connecticut is the only state with a gift tax on assets you give away while you're alive. If you made taxable gifts during the year, state law requires that you file a Connecticut estate and gift tax return to identify such gifts. However, taxes are due in 2022 only when the aggregate value of gifts made since 2005 exceeds $9.1 million (the gift tax threshold will equal the federal estate tax exemption amount beginning in 2023).

Estate and gift tax rates for 2022 are either 11.6% or 12% (a flat 12% rate will be effective beginning in 2023).