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

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 1.54 percent average property tax for its nine local planning regions, according to the most recent Tax Foundation data. Each of the local planning regions has property taxes, which range from 1.17 percent in the Western Connecticut Planning Region to 1.91 percent in the Capitol Planning Region. The Northeast Connecticut Planning Region had the lowest median property tax paid at $4,375, while the Western Connecticut Planning Region had the highest at $9,295.

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.