Skip to content

Taxes In Connecticut

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. Connecticut’s tax system ranks 47th overall on the 2025 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 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?

Stay informed on the tax policies impacting you.

Subscribe to get insights from our trusted experts delivered straight to your inbox.

Subscribe

See Related Articles

Tax Data by State

Get facts about taxes in your state and around the U.S.

Explore Data

State Tax Data

Individual Taxes

Top Individual Income Tax Rate
6.99%See Full Study
State Local Individual Income Tax Collections per Capita
$2845Rank: 3
State and Local Tax Burden
15.4%Rank: 49See Full Study

Business Taxes

Top Corporate Income Tax Rate
7.50%See Full Study
State Business Tax Climate Index Ranking
47See Full Study

Sales Taxes

State Sales Tax Rate
6.35%Rank: 12See Full Study
Combined State and Average Local Sales Tax Rate
6.35%Rank: 33See Full Study
State and Local General Sales Tax Collections per Capita
$1457Rank: 19
State Gasoline Tax Rate (cents per gallon)
25.00¢Rank: 35
State Cigarette Tax Rate (dollars per 20-pack)
$4.35Rank: 2

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
1.78%Rank: 3
State and Local Property Tax Collections Per Capita
$3292Rank: 4

All Related Articles

2022 State Population Change 2022 state migration trends. Americans moving to low-tax states united van lines u-haul census data

Americans Moved to Low-Tax States in 2022

The pandemic has accelerated changes to the way we live and work, making it far easier for people to move—and they have. As states work to maintain their competitive advantage, they should pay attention to where people are moving, and try to understand why.

5 min read
2023 State Tax Changes as of January 1, 2023, Comprehensive guide to 2020 tax changes and 2020 state tax changes

State Tax Changes Taking Effect January 1, 2023

Most of the 2023 state tax changes represent net tax reductions, the result of an unprecedented wave of rate reductions and other tax cuts in the past two years as states respond to burgeoning revenues, greater tax competition in an era of enhanced mobility, and the impact of high inflation on residents.

20 min read
The Efficiency of State and Local Tax Administration of Local Taxes including Local Sales Taxes and Local Tourism Taxes

The Efficiency of State Administration of Local Taxes

The logic that has prevailed for local sales taxes should apply equally to other taxes that localities impose on multijurisdictional businesses, including local tourism taxes. The evidence is clear that central administration of local taxes reduces compliance costs without sacrificing local revenue.

15 min read
How does your state rank on corporate taxes Compare state corporate tax component on the 2023 State Business Tax Climate Index. Explore 2023 state corporate tax rank by state and year

Ranking State Tax Systems: Corporate Taxes

All corporate income taxes fall on capital investment, but the structure should not make matters worse, and policymakers should take care not to distort investment decisions through the use of targeted incentives for select firms or activities instead of a lower rate for all businesses.

2 min read
State reciprocity agreements including state income tax reciprocity agreements

Do Unto Others: The Case for State Income Tax Reciprocity

Remote and flexible work opportunities are here to stay, whether states like it or not. With enhanced opportunities to take their job with them wherever they please, more workers can factor tax burdens into their decision of where to live.

15 min read
State recreational marijuana taxes 2022 legalization and taxation by state recreational marijuana tax status

Recreational Marijuana Taxes by State, 2022

Recreational marijuana taxation is one of the hottest policy issues in the U.S. Currently, 19 states have implemented legislation to legalize and tax recreational marijuana sales.

6 min read
north carolina tax competitiveness North Carolina tax reform North Carolina business tax reform

2023 State Business Tax Climate Index

While there are many ways to show how much is collected in taxes by state governments, our Index is designed to show how well states structure their tax systems by focusing on the how more than the how much in recognition of the fact that there are better and worse ways to raise revenue.

129 min read