How does Connecticut’s tax code compare? Connecticut has a graduated state individual income tax, with rates ranging from 2.00 percent to 6.99 percent. Connecticut has an 8.25 percent top corporate income tax rate. Connecticut also has a 6.35 percent state sales tax rate and does not have local sales taxes. Connecticut has a 1.48 percent effective property tax rate on owner-occupied housing value.
Connecticut has an estate tax. Connecticut has a 25 cents per gallon gas tax rate and a $4.35 cigarette excise tax rate (per pack of 20 cigarettes). The State of Connecticut collects $9,718 in state and local tax collections per capita. Connecticut has $12,589 in state and local debt per capita and a 64 percent funded ratio of public pension plans. Connecticut’s tax system ranks 47th overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Connecticut is no exception. The first step toward understanding Connecticut’s tax code is knowing the basics. How does Connecticut collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2025: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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