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?
Get facts about taxes in your state and around the US
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.
122 min read
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.
18 min read
Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
5 min read
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.
9 min read
Virginia enacted a biennial budget, which includes a new excise tax on “skill games.” Meanwhile, Arizona and Connecticut announced plans to convene in special sessions later this year while Oklahoma gets the green light to use rainy day fund money to close budget gaps.
4 min read
Another 1.4 million Americans filed initial regular unemployment benefit claims, the eleventh week of a decline in the rate of new claims, but still among the highest levels in U.S. history. The total number of new and continued claims now stands at 19.3 million, a marked decline from the peak of 24.9 million a month ago.
7 min read
Our updated 2020 edition of 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.
1 min read
From remote sales tax collection to taxes on marijuana and vaping products, we recap the top state tax trends from 2019 and break down which ones you should watch for in 2020.
38 min read
If a state must offer a “holiday” from its tax system, it is an implicit recognition that the state’s tax system is uncompetitive.
44 min read
Our updated 2019 edition of 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.
1 min read
