Connecticut Income Tax Calculator

Taxes in Connecticut

Connecticut State Tax Quick Facts

• Income tax: 3% - 6.99%
• Sales tax: 6.35%
• Property tax: 1.96% average effective rate
• Gas tax: 25 cents per gallon of regular gasoline, 44.10 cents per gallon of diesel

The state of Connecticut generates most of its revenue through an individual income tax and a statewide sales tax. Income tax rates range from 3% to 6.99%; that top rate ranks as slightly above the U.S. average. The sales tax rate of 6.35% is also high relative to other statewide rates, but because there are no local sales taxes in Connecticut, that is the maximum rate levied anywhere in the state. That makes Connecticut among the more tax-friendly states for shoppers.

Since there are no local income or sales taxes in Connecticut, local governments must collect most of their revenue through property taxes. That is reflected in the state’s high effective property tax rates. In fact, the average Connecticut homeowner pays $6,096 annually in property taxes.

A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Connecticut Income Taxes

Connecticut’s personal income tax is a relatively recent development. More specifically, up until 1991, only capital gains, interest and dividends were taxed. Today, those income sources, as well as wages and salaries, are taxed at marginal rates between 3% and 6.99%. The rates paid by a particular taxpayer are determined by tax brackets, as shown in the table below.

These tax rates are based on Connecticut taxable income, which is derived from your federal adjusted gross income (AGI). To arrive at Connecticut taxable income, generally all that needs to be done is to subtract the Connecticut personal exemption from federal AGI. Consider looking into tax preparation software like TaxAct and TaxSlayer to help file your taxes.

The personal exemption in Connecticut can be as much as $24,000, depending on filing status and income. In general, exemptions decline as total annual wages or salary grows. The table below shows the personal exemptions based on filing status and total annual wages for taxpayers in Connecticut. Note that this is not based on taxable income (i.e. income after deductions and exemptions), but rather total wages. For joint filers, these apply to each spouse’s income separately, and can be claimed for both spouses, if both are working.

Connecticut Tax Credits

Connecticut is different from other states in that it treats personal exemptions for state taxes as credits. That means instead of deducting an amount from taxable income, Connecticut residents reduce their tax liability after it has been calculated.

In general, Connecticut uses tax credits instead of deductions. Among these are the Connecticut Earned Income Tax Credit (CT EITC), which mirrors the federal credit, and the Property Tax Credit, up to $300 for eligible Connecticut homeowners with property tax liability.

Connecticut Sales Tax

Connecticut has a single, statewide sales tax, and no local sales taxes. Regardless of where you are in the state, you will pay 6.35% on most goods and some services. Additionally, the sales tax rate jumps to 7.75% for the sale of more than $50,000 of most cars.

Connecticut does not tax most types of food typically purchased in a grocery store. Items like fruit, meat, pasta, rice, salsa and bread are nontaxable. However, many types of food in single-serving packages, like small bags of chips or cookies, are taxable, as are candy and soda. Prepared food of any kind is also taxable.

Connecticut Property Tax

There are just eight counties in Connecticut, but average property taxes in each of these exceed $6,000 annually. The highest average property taxes in the state are in Fairfield County, where homeowners pay $7,928 annually. However, since homes there are also worth more than elsewhere in the state, property taxes as a percentage of home value are just below the state’s average of 1.96%.

Thinking of financing a new home or refinancing your current home in Connecticut? Take a moment to look at our Connecticut mortgage guide, where you will find information on rates and getting a mortgage in Connecticut.

Connecticut Estate Tax

Like many states in the northeast, Connecticut has its own tax on estates. The tax is similar to the federal estate tax, but with some notable differences. First, the 2022 exemption amount in Connecticut is $9.1 million.

Estates with a taxable value above $9.1 million must pay the estate tax. Rates begin at 11.6% for the first $1 million above the exemption. The top rate is 12% for the portion of any estate that exceeds $10.1 million in value.

Connecticut Gas Tax

The state gas tax on regular fuel in Connecticut is 25 cents per gallon. That’s right in the middle of the pack on a national scale. The tax on diesel fuel ranks much higher, though, at 49.20 cents per gallon.

Connecticut Capital Gains Tax

Capital gains are taxed as regular income in Connecticut, which means they face a top rate of 6.99%.

Connecticut Cigarette Tax

Connecticut has one of the highest cigarette taxes in the nation at $4.35 per pack.

Connecticut Alcohol Tax

Excise taxes on alcohol in Connecticut are near the national average. The total tax on liquor adds up to $5.94 per gallon. The tax on wine is $0.79 per gallon and the tax on beer is $0.24 per gallon.

• “Yankee Doodle” is the official state song of Connecticut.
• Author Mark Twain lived in Hartford Connecticut for 20 years. He published both of his most famous works (The Adventures of Tom Sawyer and The Adventures of Huckleberry Finn) during that period.
• The Ivy League’s Yale University is located in New Haven, Connecticut.