Connecticut state income tax
Connecticut has a state income tax. It is graduated, with a top marginal rate of 6.99%. Seven brackets for single/MFS filers: 2% ($0-$10,000), 4.5% ($10,001-$50,000), 5.5% ($50,001-$100,000), 6% ($100,001-$200,000), 6.5% ($200,001-$250,000), 6.9% ($250,001-$500,000), 6.99% (over $500,000). Married-joint thresholds are double (e.g. 2% up to $20,000, top 6.99% bracket starts at $1,000,000); head-of-household thresholds are 1.6x single. The bottom two rates were cut from 3%/5% to 2%/4.5% starting tax year 2024 (unchanged since); all other brackets/rates unchanged since 2015. CGS 12-700. Capital gains are taxed as ordinary income (no special lower rate).
Does Connecticut have a state income tax?
Yes. Connecticut taxes individual income on a graduated schedule topping out at 6.99%. Seven brackets for single/MFS filers: 2% ($0-$10,000), 4.5% ($10,001-$50,000), 5.5% ($50,001-$100,000), 6% ($100,001-$200,000), 6.5% ($200,001-$250,000), 6.9% ($250,001-$500,000), 6.99% (over $500,000). Married-joint thresholds are double (e.g. 2% up to $20,000, top 6.99% bracket starts at $1,000,000); head-of-household thresholds are 1.6x single. The bottom two rates were cut from 3%/5% to 2%/4.5% starting tax year 2024 (unchanged since); all other brackets/rates unchanged since 2015. CGS 12-700.
| Item | Connecticut |
|---|---|
| State income tax | Yes, graduated |
| Top marginal rate | 6.99% |
| Capital gains | Taxed as ordinary income, up to 6.99% |
| State sales tax | 6.35% |
| Avg. property tax rate | 1.54% of home value |
| Estate / inheritance tax | Estate tax (exemption $15,000,000) |
How does Connecticut tax capital gains?
Connecticut has no separate, lower rate for capital gains. They are taxed as ordinary income at the same rates as your wages, up to 6.99%, on top of federal capital gains tax. See how capital gains tax works in 2026.
What about retirement income in Connecticut?
Retirement income is taxed differently from wages in many states. For how Connecticut treats Social Security, pensions, and 401(k)/IRA withdrawals, see Connecticut retirement taxes.
Sources
- Connecticut income tax rates and brackets: Connecticut Department of Revenue / Taxation.
- Connecticut capital gains treatment: Connecticut tax authority.
- Connecticut sales tax: Connecticut Department of Revenue.