Taxes in Connecticut: State Tax Guide 2026
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Taxes in Connecticut: State Tax Guide 2026
Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.
Connecticut ranks among the highest-tax states in America. Its progressive income tax tops out at 6.99%, and a “tax on the tax” recapture provision effectively raises the rate for high earners. The state has the highest per-capita property taxes in the country, and its estate tax threshold is well below the federal exemption. Residents pay a premium to live in one of the wealthiest states, with proximity to New York City and strong public schools.
Connecticut Income Tax Rates (2026)
Connecticut uses a progressive income tax with seven brackets. Rates for single filers:
| Tax Rate | Taxable Income Range |
|---|---|
| 2.00% | $0 – ~$10,000 |
| 4.50% | ~$10,001 – ~$50,000 |
| 5.50% | ~$50,001 – ~$100,000 |
| 6.00% | ~$100,001 – ~$200,000 |
| 6.50% | ~$200,001 – ~$250,000 |
| 6.90% | ~$250,001 – ~$500,000 |
| 6.99% | Over ~$500,000 |
Married filing jointly thresholds are different (not simply doubled). The top rate applies above ~$1,000,000 for joint filers.
Tax recapture: Connecticut imposes a 3% “recapture” on the tax itself for high-income filers. For single filers with CT AGI above ~$200,000 (or ~$400,000 joint), the benefit of the lower brackets is phased out through a surcharge equal to 3% of the computed tax. This effectively pushes the marginal rate above 7.20% for certain income ranges.
Sales Tax
| Component | Rate |
|---|---|
| State rate | 6.35% |
| Local add-on | None |
| Combined rate | 6.35% |
Connecticut does not permit local sales tax add-ons.
Luxury tax: A 7.75% rate applies to motor vehicles priced above ~$50,000 and jewelry above ~$5,000.
Exempt from sales tax: Most groceries, prescription and nonprescription medications, clothing under ~$50 (items above $50 are taxed at full rate), and residential utility services.
Property Tax
| Metric | Amount |
|---|---|
| Average effective rate | ~1.96% |
| National average | 0.99% |
| Rank | Among the top 3 highest nationally |
Connecticut property taxes are among the most burdensome in the nation. Mill rates are set by each municipality and vary widely: Bridgeport’s mill rate exceeds 40 mills, while affluent towns like Greenwich are around 11 mills.
Assessment ratio: Properties are assessed at 70% of fair market value.
Example: A home with a fair market value of $400,000 in a town with a 30-mill rate has an assessed value of $280,000 and pays approximately ~$8,400 per year.
Property tax credits: See the Tax Breaks section below for elderly and disability credits.
Other Taxes
- Estate tax: Connecticut imposes an estate tax on estates above ~$13,610,000 (scheduled to match the federal exemption). Rates range from ~11.60% to ~12.00%. Connecticut previously had a much lower threshold, but phased increases have aligned it with the federal level.
- Gift tax: Connecticut is the only state that imposes a gift tax (in addition to the estate tax). The lifetime exemption matches the estate tax exemption.
- No inheritance tax.
- Capital gains: Taxed as ordinary income at state rates (up to 6.99% + recapture).
- Fuel tax: ~$0.25 per gallon (the state periodically suspends the gas tax or offers holidays).
- Cigarette tax: ~$4.35 per pack — among the highest nationally.
- Alcohol tax: ~$5.40 per gallon of spirits.
- No local income taxes.
Tax Breaks and Credits
- Social Security exemption: Connecticut is phasing in a full exemption for Social Security benefits. For 2026, individuals with AGI below ~$75,000 (single) or ~$100,000 (joint) can fully exempt Social Security. Above those thresholds, 75%–100% is exempt depending on income.
- Pension and annuity exemption: Up to ~14% of income from qualifying pensions and annuities can be subtracted, with the percentage increasing each year as part of a phase-in.
- Property tax credit: Up to ~$300 for qualifying homeowners and renters based on income.
- CT EITC: ~40% of the federal Earned Income Tax Credit, fully refundable.
- Child tax credit rebate: Connecticut has periodically offered one-time child tax credit rebates of ~$250 per child.
- 529 plan deduction: Up to ~$5,000 (single) or ~$10,000 (joint) for contributions to Connecticut’s CHET 529 plan.
- Angel investor credit: Tax credit for investments in qualifying Connecticut startups.
Key Takeaways
- Connecticut’s top income tax rate of 6.99% is elevated further by the 3% recapture provision for high earners
- Property taxes averaging ~1.96% are among the highest in the nation, with wide variation by municipality
- Connecticut is the only state that imposes a gift tax in addition to an estate tax
- Social Security exemptions are expanding, making the state more retiree-friendly than in prior years
- The sales tax exemption for clothing under ~$50 and for groceries provides some relief on everyday spending
Next Steps
- Compare Connecticut to other states at State Income Tax Comparison: All 50 States Ranked
- Understand your federal obligation with the Federal Income Tax Guide 2026
- Make sure you claim everything you can — Tax Deductions You’re Probably Missing
- Ready to file? See How to File Your Taxes Step by Step
Tax information is for educational purposes only. Consult a licensed tax professional.