Tool | Updated October 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.

Connecticut

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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.

The $10,000 cap on the federal tax deduction for state and local taxes will sting residents in high-income areas, such as Fairfield County, who pay more than $10,000 in property taxes — their federal tax deductions for state and local taxes will be curtailed.

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

Motor Fuel Taxes

Gasoline: $0.44 per gallon.
Diesel: $0.44 per gallon.

Property Taxes

The median property tax on Connecticut’s median home value of $269,300 is $5,443.

See Kiplinger.com’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: $4.35 per pack
Snuff: $3 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

7.75%

Inheritance and Estate Taxes

Estates valued over $2.6 million (in 2018) are subject to estate tax. The exemption will rise to $3.6 million in 2019. Rates range from 7.2% to 12%. Connecticut is the only state with a gift tax on assets you give away while alive. The state’s tax law requires that you file Connecticut gift tax returns every year to identify such gifts; however, taxes (at rates ranging from 7.2% to 12%) are due only when the aggregate value of gifts made to any individual since 2005 exceeds $2 million.

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