State Tax Changes Taking Effect January 1, 2024
Thirty-four states will ring in the new year with notable tax changes, including 15 states cutting individual or corporate income taxes (and some cutting both).
17 min read
Connecticut Tax Rates, Collections, and Burdens
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 a 7.5 percent 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 1.78 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. The State of Connecticut collects $9,469 in state and local tax collections per capita. Connecticut has $14,903 in state and local debt per capita and has a 58 percent funded ratio of public pension plans. Overall, Connecticut’s tax system ranks 47th on our 2024 State Business Tax Climate Index.
Each state’s tax code is a multifaceted system with many moving parts, and Connecticut is no exception. The first step towards 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 2024: How Does Your State Compare?
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