Connecticut has a graduated state individual income tax, with rates ranging from 2.00 percent to 6.99 percent. Connecticut has a 7.50 percent corporate income tax rate, a 6.35 percent state sales tax rate, and an average combined state and local sales tax rate of 6.35 percent. The Connecticut corporate income tax includes a 10 percent surtax that effectively results in a top rate of 8.25 percent for businesses with $100 million or more in annual income. Connecticut has a 1.54 percent effective property tax rate on owner-occupied housing value. Connecticut has an estate tax. Connecticut’s gas tax is 25 cents per gallon, but the state additionally levies an 8.1 percent petroleum gross earnings tax. Connecticut’s cigarette excise tax is $4.35 per pack of 20 cigarettes.
Connecticut raises tax revenue primarily through property taxes (35.3 percent of total state and local tax revenue), individual income taxes (26.0 percent), and general sales taxes (16.3 percent). Connecticut collects $9,388 in state and local tax collections per capita, carries $12,052 in state and local debt per capita, and has a 66 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. Use the tabs below to compare Connecticut taxes with other states and to see how Connecticut raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: 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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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
2 min read
Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
9 min read
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
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Property taxes are the primary tool for financing local governments. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property tax bills are most often the ones benefiting from the services.
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Property taxes are the primary tool for financing local government and generating state-level revenue in some states as well.
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