Tool | January 2018

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, sin products, property, and more -- across the U.S.


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The Bottom Line
Map of Connecticut

Least Tax-Friendly

About the only bright spot in Connecticut's tax picture is that localities can't add to The Constitution State's 6.35% sales tax. Real estate taxes are the fourth-highest in the country and the state has not only a gift tax, but a luxury tax. The Nutmeg state is one of Kiplinger's top ten least tax-friendly states What's worse, Connecticut faces serious financial pressures that could force it to raise taxes even more.

Sales Tax

The state taxes most items at 6.35%, but localities are not allowed to add to that. Jewelry valued at more than $5,000 and clothing, footwear and accessories priced at more than $1,000 per item are taxable at 7.75%.

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)

Effective income tax rate: 3.1%/individual, 5%/joint

See’s Retiree Tax Map for details on tax breaks for seniors in Connecticut.

Motor Fuel Taxes

Gasoline: $0.39 per gallon.
Diesel: $0.42 per gallon.

Property Taxes

The median property tax on Conneticut's median home value of $270,500 is $5,327, according to the Tax Foundation.

See’s Retiree Tax Map for details on tax breaks for seniors in Connecticut.

Vehicle Taxes

Sales tax is due at purchase: 6.35% for vehicles under $50,000; 7.75% for those over. In addition, vehicles are subject to an stiff annual levy, whether or not they're registered for use. The rates are set by individual municipalities. Legislation implemented in 2016 lowered the cap on these levies. For example, the owner of a $20,000 vehicle who lived in Hartford would pay $1,366 annually.

Sin Taxes

Cigarettes: $3.65 per pack
Snuff: $1 per ounce
Chewing and smoking tobacco: 50% of the wholesale price
Cigar: 50% of the wholesale price ($0.50 cap)

Beer: $0.23 per gallon
Wine: $0.72 per gallon
Liquor: $5.40 per gallon

Travel Taxes

Hotel: 15% lodging tax. Sales tax is not levied, and local governments may not add taxes.

Rental cars: 3% on top of sales tax. A $1 per day "tourism surcharge" is also levied.

Taxes On Wireless Service


Inheritance and Estate Taxes

Connecticut imposes an estate tax on the transfer of estates valued at $2 million or more at a progressive rate starting at 7.2%. The rate rises to a maximum of 12% for an estate valued above $10.1 million. There is no inheritance tax.

Connecticut is the only state with a gift tax, which applies to real and tangible personal property in Connecticut and intangible personal property anywhere for permanent residents. Only the amount given after January 1, 2005, and over $2 million is taxed, starting at 7.2% of the excess and rising to $748,200 plus 12% of the excess over $10.1 million.

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