Connecticut State Taxes
Quick Tax Facts
- Income Tax: 3% – 6.99%
- State Sales Tax: 6.35%
- Median Property Tax: $4,738
Overview
If you’re looking for a great place to live and raise a family, Connecticut ranks near the top of the list of happiest states in America. It has a low poverty rate and above-average household income, as well as top-notch schools. Unfortunately, Connecticut is also near the top when it comes to tax burdens. The state has some of the highest property taxes in the country, as well as high state sales tax and income tax rates.
Connecticut Income Tax
Connecticut has seven tax brackets ranging from 3% to 6.99%. The rates are marginal, so income that falls within the corresponding range is subject to tax at the specified rate. For example, a single person earning $98,000 would pay 3% on the first $10,000, 5% on income from $10,001 to $50,000, and 5.5% on the remaining income ($50,001 to $98,000).
Connecticut Individual Income Tax Rates |
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Tax Rate | Single & Married Filing Separately | Head of Household | Married Filing Jointly |
---|---|---|---|
3% | $0 – $10,000 | $0 – $16,000 | $0 – $20,000 |
5% | $10,000 – $50,000 | $16,001 – $80,000 | $20,001 – $100,000 |
5.5% | $50,001 – $100,000 | $80,001 – $160,000 | $100,001 – $200,000 |
6% | $100,001 – $200,000 | $160,001 – $320,000 | $200,001 – $400,000 |
6.5% | $200,001 – $250,000 | $320,001 – $400,000 | $400,001 – $500,000 |
6.9% | $250,001 – $500,000 | $400,001 – $800,000 | $500,001 – $1M |
6.99% | > $500,000 | > $800,000 | > $1M |
Beginning on January 1, 2024, Connecticut’s income tax rates will be reduced for the first since the mid-1990s, impacting the two lowest rates (see below). It’s also the largest tax cut in state history.
- The 3% rate on the first $10,000 for single filers and $20,000 for joint filers will be reduced to 2%.
- The 5% rate on the next $40,000 earned by single filers and the next $80,000 for joint filers will be reduced to 4.5%.
More than one million taxpayers should benefit from the new lower rates.
Who Must File?
Full-time Connecticut residents with earned or unearned income, as well as part-time and non-residents with Connecticut-source income, must file an income tax return if they:
- Have Connecticut income tax withheld from their wages,
- Make estimated income tax payments (state),
- Had a pass-through entity (PE) tax credit,
- Meet or exceed the gross income threshold for their filing status,
- Have a federal alternative minimum tax liability, or
- Are claiming the Connecticut Earned Income Tax Credit (EITC).
The income thresholds by filing statuses are as follows:
- Single – $15,000
- Head of Household – $19,000
- Married Filing Jointly and Surviving Spouses – $24,000
- Married Filing Separately – $12,000
Connecticut Sales Tax
Since 1947, the Connecticut state sales tax rate has been 6.35%. Although this is one of the highest in the U.S. (6th), it’s actually on the lower end when local sales tax rates are factored into the equation. That’s because Connecticut is one of the few states that doesn’t levy sales tax at the local level. Over-the-counter (OTC) and prescription drugs, as well as groceries, are exempt from sales tax.
Connecticut Property Taxes
Connecticut has the second-highest median property tax in the country at $4,738. Property taxes are collected at the county level. Fairfield County has the highest average at $6,221 annually. Windham County currently has the lowest average property tax at $2,970 per year.
The state does offer a $1,000 property tax exemption for certain honorably discharged veterans who served a minimum of 90 days during wartime. The exemption is also extended to their survivors. There is an additional exemption for veterans who are eligible for the $1,000 exemption and meet certain income limits.
Highest | $6221 |
---|---|
Median | $4738 |
Lowest | $2970 |
Yearly Cost Per Resident
Connecticut Tax Holidays
Since 2000, Connecticut has offered a Sales Tax Free Week that begins on the third Sunday of August and runs until the following Saturday. Clothing and footwear under $100 are exempt from sales tax during this time.
Connecticut Tax Resources
If you need assistance preparing your Connecticut state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the Connecticut State Department of Revenue Services website for additional resources.
- Tax Forms & Instructions
- Customer Service phone number: 800-382-9463 or 860-297-5962
- For general questions or to schedule an appointment, email DRS@ct.gov
- myconneCT – file returns, check refund status, and more