State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families. Go to the Kiplinger Tax Map Connecticut Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Least Tax-Friendly The Constitution State is an expensive place to live. Connecticut's property taxes are the third-highest in the U.S., so the $10,000 cap on the federal tax deduction for state and local taxes stings a bit more here. The state-wide average property tax for a $300,000 home is $6,417 per year. However, residents in high-income areas such as Fairfield County typically pay more than $10,000 in property taxes each year, so their federal tax deductions for state and local taxes have been curtailed.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. 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: ExemptClothing: 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 $2,139 per $100,000 of assessed home value. Motor Fuel Taxes Gasoline: 35.75¢ per gallon. Diesel: 44.6¢ per gallon (40.1¢ per gallon effective July 1, 2021). Sin Taxes Cigarettes and little cigars: $4.35 per pack Snuff: $3 per ounceChewing and smoking tobacco: 50% of the wholesale priceCigars: 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 gallonMarijuana: 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 $7.1 million exclusion ($9.1 million in 2022). 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 2021 only when the aggregate value of gifts made since 2005 exceeds $7.1 million ($9.1 million in 2022).Estate and gift tax rates for 2021 range from 10% to 12%.