Take control of student loan debt! Sign up for a free, live workshop on 3/25 and speak with experts.

Content starts here

Connecticut State Taxes: What You’ll Owe in the 2026 Tax Season

Valerie Bauman,

AARP

Published March 13, 2026

Getty Images

With high property taxes, as well as hefty estate and gift taxes, Connecticut has consistently ranked as one of the states with the heaviest tax burdens by the Tax Foundation, which says the tax structure makes the state less attractive to homeowners and high-net-worth individuals. Its income tax system has seven brackets, with a top marginal rate 6.99 percent.

The big picture

Income tax: 2 percent to 6.99 percent, depending on income. The breakdown of the different rates can be found below.
Property tax: 1.48 percent in 2023.
Sales tax: 6.35 percent. Some products, such as meals, jewelry and short-term auto rentals, have different tax rates. The various rates can be found here. Local municipalities do not charge additional sales tax.

How is income taxed in Connecticut?

Connecticut has seven tax brackets and a top marginal rate of 6.99 percent. The Tax Foundation calls it one of the most complex individual income tax systems in the nation. See the table above for a breakdown of the different brackets and associated tax rates.

Are pensions or retirement income taxed?

Pension and annuity income is fully exempt from Connecticut income tax for taxpayers with a federal adjusted gross income of less than $100,000 for joint filers or $75,000 for all other filers. This 100 percent deduction gradually phases out for taxpayers with retirement incomes above those eligibility thresholds. The deduction is eliminated for those with a federal adjusted gross income of $150,000 or more for joint filers or $100,000 or more for all others.

Residents can use the state’s income tax calculator to determine their tax reductions.

What about investment income?

Most Popular

Capital gains are treated and taxed as ordinary income and subject to income tax.

Does Connecticut tax Social Security benefits?

Yes, but residents with adjusted gross incomes of less than $75,000 (if filing as an individual) or $100,000 (if married and filing jointly or as head of household) are fully exempt from taxes on that income. All other taxpayers may take a partial deduction for their Social Security benefits. For them, no more than 25 percent of total Social Security benefits received is subject to tax.

How is property taxed in Connecticut?

Connecticut had a 1.48 percent average property tax in 2023 for its nine local planning regions, according to a 5-year estimate by the Tax Foundation. Each of the local planning regions has property taxes, which range from 1.47 percent in the Western Connecticut Planning Region to 2.15 percent in the Greater Bridgeport Planning Region. The Northeast Connecticut Planning Region had the lowest median property tax paid, at $4,340, while the Western Connecticut Planning Region had the highest, at $9,222.

What about sales and other taxes?

Sales tax: 6.35 percent. Local municipalities do not charge additional sales tax in Connecticut. Prescription medication, medical devices, most food products, newspapers, college textbooks, among other items, are exempt from sales tax in Connecticut. A full list is available here .
Gasohol and diesel: Gasohol is $0.25 per gallon; diesel is $0.489 per gallon. Gasoline is not sold in Connecticut.
Vehicle tax: Vehicle purchases are taxed at 6.35 percent (or 7.75 percent for vehicles with a sales price over $50,000).
Alcohol: Beer is taxed at 20 cents per gallon, wine is taxed at 79 cents per gallon and sparkling wines are taxed at $1.98 per gallon. Spirits are taxed at $5.94 per gallon.
Lottery: Lottery winnings are subject to the state’s income tax and would be taxed based on the winner’s adjusted gross income bracket.

Will my estate or my heirs have to pay inheritance or estate tax?

For estates of people who died during 2025, the Connecticut estate tax exemption amount is $13.99 million. This means that the Connecticut estate tax of 12 percent is only due from a decedent’s estate on anything above $13.99 million.

Are there any tax breaks for older Connecticut residents?

Homeowners’ elderly/disabled circuit breaker tax relief program: Connecticut has a property tax credit program for homeowners who are 65 and older or totally disabled, and whose annual incomes do not exceed $46,300 if unmarried, or $56,500 if married, according to 2024 policy. The credit amount is calculated by the local assessor in each municipality and applied by the tax collector to the applicant’s real property tax bill. The amount of the credit that may be granted is up to $1,250 for married couples and $1,000 for single persons. Credit amounts are based on a graduated income scale. Residents must apply for the program at their assessor’s office between Feb. 1 and May 15.
Renters’ rebate program: The state offers a reimbursement program for renters who are 65 and older, or totally disabled. Their incomes must be $46,300 or lower if single or $56,500 if married, according to 2024 policy. Those renting an apartment or a room, or living in cooperative housing or a mobile home, could qualify for the rebate program. Married couples can get up to $900. Single people can get up to $700. The rebate amount is based on a graduated income scale and rent and utility payments (except for telephone) made in the calendar year before the year in which the application is made. Applications must be submitted at the municipality local assessor’s office or social service agency on or after April 1 and not later than Sept. 30.

Are military benefits taxed in Connecticut?

Military pay and military pensions are taxed like other income in Connecticut.

What is the deadline for filing Connecticut taxes in 2026?

Your 2025 tax return is due April 15, 2026.

More AARP Financial Resources

AARP Retirement Calculator Determine if you are saving enough to retire when — and how — you want.
AARP’s Social Security Calculator Figure out when to claim and how to maximize your Social Security benefits.
AARP Tax Tools Explore resources to help you calculate and prepare taxes.

Valerie Bauman is a journalist and author with two decades of experience working for publications, including Newsweek, Bloomberg and The Associated Press. Throughout her career, she’s covered politics and the law, including pharmaceutical litigation, mass torts and election law.