Connecticut

Sales Tax

  • Statewide: 6.35%
  • Counties cannot levy additional sales tax.
  • Common Exceptions at State Level:
    • Prescription and Over-the-Counter Medicine: Exempt
    • Unprepared Foods: Exempt
    • Clothing Items Under $50: Exempt
  • Vehicle Tax: 7.75% (on vehicles over $50,000)
  • Gasoline Tax: 54.15 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 64.50 cents/gallon (Includes all state, local, and federal taxes) 

Sales Tax Comments: Jewelry valued at more than $5,000 and clothing more than $1,000 per item may be subject to a 7.75% luxury goods sales tax.

 

Personal Income Tax

  • Personal Income Tax Rate Range: Seven brackets from 3.0% to 6.99% (on income over $500,000). Higher-income individuals may be subject to a phase-out add-back tax that effectively increases their tax brackets.
  • Standard deduction: None
  • Personal Exemption Allowance: Based on income, can be as high as $15,000. Qualifying widow(er) with dependent can be as high as $24,000. Can phase out to zero.
  • Tax credits: Credits of up to 75% of tax owed are available, based on income.
  • Itemized Deductions Allowed? Yes. Subject to limitations.
  • Retirement Income
    • Social Security: 100% exempt if federal Adjusted Gross Income is less than $75,000 ($100,000 for joint filers). 75% exempt if AGI exceeds $75,000. Taxpayers above these thresholds may qualify for a partial deduction.
    • IRAs: 25% if federal AGI is less than $75,000 ($100,000 for joint filers). 75% exempt if AGI exceeds $75,000.
    • 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates
    • Private Pensions: 100% exempt if federal AGI is less than $75,000 ($100,000 for joint filers). 75% exempt if AGI exceeds 75,000.
    • Public Pensions: Taxable at ordinary income tax rates, but 50% of state teacher's retirement system income can be excluded.*
  • Military Pay
    • Active Duty Pay: Taxable to the extent included in federal AGI
    • Military Retirement Pay: Exempt
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Exempt

 

Property Tax

  • Local municipalities average 2.14% of the property's assessed value.
  • Calculation of assessed value: 70% of fair market value.
  • Relief programs for:
    • Veterans/Surviving Spouses: All veterans are entitled to a $1,000 exemption of assessed value. May be eligible for an additional 200% if meet certain requirements.
    • Disabled Veterans: Up to $10,000 in exemptions are available.
    • 65 and over or Disabled: Tax credits available based on income, maximum is $1,000 for single filers, $1,250 for married filing jointly
  • Personal Property Tax: Yes, rates and exemptions vary.
Property Tax Comments: Additional exemptions and/or freezes may be eligible at the municipal level.

 

Inheritance & Estate Taxes: Estates over $12.92 million can pay 12%. Tax capped at $15 million. There is no inheritance tax.

 

Department of Revenue website: https://portal.ct.gov/drs

More Financial Guidance From MOAA 

Premium and Life members can consult our financial staff for education and consumer advice.

 

Looking to get more out of your membership? MOAA has more than 400 chapters around the country. Get involved in your community by finding the one closest to you and joining today! 


Financial Resources Join a Chapter

Search