Data Notice: Estate and inheritance tax exemptions and rates cited here are projected 2026 figures. The federal estate tax exemption is inflation-adjusted annually and faces a scheduled reduction after 2025 under prior law, potentially modified by recent legislation. Verify with IRS.gov. Applicable to estate tax in connecticut: complete guide as discussed in this article.

Estate Tax in Connecticut: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed estate planning attorney for your specific situation.

Connecticut is unique among states in two important ways: it has the highest estate tax exemption of any state that imposes an estate tax (matching or closely tracking the federal level at approximately ~$15 million), and it is the only state that imposes a separate gift tax during a taxpayer’s lifetime. With a top rate of ~12.00%, Connecticut’s estate tax affects only the wealthiest residents, but the gift tax adds a layer of complexity that does not exist in other states.

Connecticut Estate Tax Rates and Exemption (2026)

Parameter	Projected 2026 Level
Estate tax exemption	~$15 million (permanent under OBBB)
Gift tax exemption	Unified with estate exemption
Top marginal rate	~12.00%

Connecticut Estate/Gift Tax Rate Schedule

Taxable Amount (Above Exemption)	Tax Rate
$0 — $3,600,000	~7.20%
$3,600,001 — $8,100,000	~9.60%
$8,100,001 — $10,100,000	~10.40%
$10,100,001 — $13,100,000	~11.20%
Over $13,100,000	~12.00%

Estimated Tax by Estate Size

Estate Value	Estimated Connecticut Estate Tax
~$15,000,000	$0
$15,000,000	~$100,100
$20,000,000	~$497,700
$30,000,000	~$1,697,700
$50,000,000	~$4,097,700

Connecticut’s ~12.00% top rate is the lowest among states that impose estate taxes, and the high exemption means very few Connecticut estates are subject to the tax.

Connecticut’s Unique Gift Tax

Connecticut is the only state that imposes a state-level gift tax. This is significant because in all other estate tax states, lifetime gifts are an effective strategy to reduce the estate tax base. In Connecticut:

The gift tax uses the same unified exemption as the estate tax (~$15 million combined lifetime)
The gift tax rates mirror the estate tax rates (~7.20% to ~12.00%)
Gifts exceeding the annual exclusion (~$19,000 per recipient per year) count against the unified exemption

This means Connecticut residents cannot use lifetime gifting to avoid state transfer taxes as effectively as residents of other states can. However, gifts within the annual exclusion remain free of both federal and Connecticut gift tax.

Federal Exemption Now Permanent

The One Big Beautiful Bill Act made the elevated federal estate tax exemption permanent at approximately ~$15 million per person. Connecticut’s exemption has historically tracked the federal level and is expected to continue doing so, providing long-term stability for Connecticut estate planning.

Comparison to Other Northeast States

State	Exemption	Top Rate	Gift Tax?
Connecticut	~$15 million	~12.00%	Yes
New York	~$6.94 million	~16.00%	No
Massachusetts	~$2.00 million	~16.00%	No
Maine	~$6.80 million	~12.00%	No
Vermont	~$5.00 million	~16.00%	No
Rhode Island	~$1.77 million	~16.00%	No
New Hampshire	None	N/A	No

Connecticut has the highest exemption and lowest top rate among states with estate taxes. However, it is the only state with a gift tax, partially offsetting the advantage of the high exemption.

What Is Included in the Connecticut Taxable Estate

Connecticut follows the federal gross estate definition:

Real and personal property owned at death
Life insurance proceeds (if the decedent owned the policy)
Retirement accounts and financial assets
Business interests
Revocable trust assets
Connecticut taxable gifts made during lifetime (above the annual exclusion) are added to the taxable estate

Connecticut allows the unlimited marital deduction and charitable deduction.

Tips for Minimizing Connecticut Estate and Gift Tax

Use the annual gift tax exclusion generously. Gifts within the ~$19,000 per recipient annual exclusion are not subject to Connecticut gift tax and do not reduce your unified exemption. A married couple with four children and their spouses could transfer approximately ~$152,000 per year tax-free.
Maximize the marital deduction. Assets passing to a surviving spouse are exempt from both estate and gift tax. A credit shelter trust preserves both spouses’ unified exemptions.
Plan around the gift tax. Since Connecticut is the only state with a gift tax, be strategic. Gifts of appreciating assets may still be beneficial because future appreciation escapes the estate.
Fund charitable gifts. Charitable bequests and charitable remainder trusts reduce the taxable estate and are not subject to estate or gift tax.
Consider an irrevocable life insurance trust. Removing life insurance from the estate can reduce tax for larger estates. The three-year look-back applies in Connecticut.
Leverage the permanent exemption. The elevated federal exemption is now permanent under the One Big Beautiful Bill Act, providing long-term certainty for Connecticut estate planning.

Key Takeaways

Connecticut’s estate tax exemption of approximately ~$15 million is the highest among states with estate taxes
The top rate of ~12.00% is the lowest top rate among estate tax states
Connecticut is the only state with a gift tax, which limits the effectiveness of lifetime gifting as an estate tax reduction strategy
The estate and gift tax exemptions are unified — lifetime taxable gifts reduce the amount available at death
The federal exemption has been made permanent by the One Big Beautiful Bill Act, providing long-term certainty

Next Steps

Understand the federal estate tax at Federal Estate Tax: Complete Guide 2026
Compare with lower-exemption states at Estate Tax in Massachusetts 2026
Read the full state guide at Taxes in Connecticut: State Tax Guide 2026
Calculate your federal bracket at Tax Bracket Calculator 2026
Get professional guidance: Hire a Tax Professional