What’s the proper way to tax personal saving and investment? It’s a great question, and under current tax law, we have lots of different answers! Specifically, we have four of them, which I’ll get to in a moment. But...
The facts on Connecticut’s Tax Climate
6.99%individual income taxTop rate
9%corporate income taxFlat rate
$2,726property taxcollections per capita
Connecticut's Individual Income Tax System
Connecticut's individual income tax system consists of seven brackets with a top rate of 6.99%. The top rate ranks 13th highest among states levying an individual income tax. Connecticut's state and local tax collections per person were $2,172 in 2013, which ranked 2nd highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Connecticut's Corporate Income Tax System
Connecticut's corporate income tax system consists of a flat rate of 9%. That rate ranks 5th highest among states levying a corporate income tax. Connecticut's state and local corporate income tax collections per person were $159 in 2013 which ranked 18th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Connecticut Sales and Excise Taxes
Connecticut levies a 6.35% general sales or use tax on consumers, which is above the national median of 5.95%. Connecticut does not levy additional local sales taxes. Connecticut's state and local governments collect $1,072 per person in general sales taxes and $812 per person in excise taxes, for a combined figure of $1,884, which ranks 7th highest nationally. Connecticut's gasoline tax stands at 37.51 cents per gallon, 6th highest nationally, while its cigarette tax stands at $3.65, 3rd highest nationally.
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Connecticut Property Tax Collections Relatively High
Connecticut's state and local governments collected approximately $2,726 per person in property taxes in 2013, which ranks 2nd nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on May 21st in Connecticut
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Connecticut taxpayers have to work until May 21st (50th earliest nationally) to pay their total tax bill.
Connecticut's State and Local Tax Burden Ranks 2nd
Connecticut's 2012 tax burden of 12.6% ranks 2nd highest in the nation, and is above the national average of 9.9%. Connecticut's taxpayers pay $7869 per capita in state and local taxes.
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Connecticut's 2016 Business Tax Climate Index Ranks 44th
Connecticut ranks 44th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (33rd), individual income taxes (36th), sales taxes (29th), unemployment insurance taxes (20th), and taxes on property (49th), including residential and commercial property.
State Business Tax Climate Index (full study)
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