Data Notice: Connecticut tax data in this guide uses projected 2026 figures derived from current law and IRS inflation indexing. Mid-year legislative changes may alter rates or brackets. Check with the Connecticut revenue department for the latest information. [taxes-connecticut-2026]

Taxes in Connecticut: State Tax Guide 2026

This article about taxes in connecticut: state tax guide 2026 provides general tax education and is not a substitute for professional tax advice. Laws and regulations discussed here may have changed since publication. Work with a licensed tax advisor for decisions affecting your specific tax 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 ~$15,000,000 (matching the federal exemption, now permanent under the One Big Beautiful Bill Act). 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.