Connecticut state taxes 2020-2021: Income and sales tax rates
Connecticut has a graduated personal income tax structure, in which the amount people are taxed increases as their earned income increases. This is similar to the federal income tax system and differs from states that use a flat tax rate.
Additionally, while the state has a higher sales tax rate than the national average, there are no local sales taxes charged, which produces a balancing effect for the net amount of taxes collected.
Connecticut personal income tax rates: Table
| Connecticut personal income tax rates | ||
|---|---|---|
| Tax rate | Single, married filing separate | Married filing jointly |
| 3.0% | $0-$10,000 | $0-$20,000 |
| 5.0% | $10,001-$50,000 | $20,001-$100,000 |
| 5.5% | $50,001-$100,000 | $100,001-$200,000 |
| 6.0% | $100,001-$200,000 | $200,001-$400,000 |
| 6.5% | $200,001-$250,000 | $400,001-$500,000 |
| 6.9% | $250,001-$500,000 | $500,001-$1,000,000 |
| 6.99% | $500,001 or more | $1,000,001 or more |
| Source: Connecticut State Department of Revenue Services | ||
While the state doesn’t have a standard deduction, the personal exemption is $15,000 for single taxpayers and $24,000 for married couples.
Connecticut also has a policy known as tax benefit recapture, in which many high-income taxpayers pay the maximum tax rate on all income, not just the amount above the threshold. The state also imposes phaseout provisions, in which the amount taxed can be reduced based on income meeting certain thresholds.
Additionally, Connecticut taxpayers are given personal tax credits that range from 1 to 75 percent based on their adjusted gross income. Personal exemptions are phased out when adjusted gross income exceeds $30,000 for a single taxpayer or $48,000 for married joint filers.
Who has to file Connecticut state taxes?
People who lived in Connecticut for the entire year must file income taxes if any of the following conditions exist:
- They had Connecticut income tax withheld.
- They made estimated tax payments to Connecticut.
- They earned any of the following: wages, fees, commissions; capital gains, interest and dividends; gross rental income; gambling winnings; alimony; taxable pensions and annuities; prizes and awards; IRA distributions; unemployment compensation; federally taxable Social Security or disability benefits and more.
- They had a federal alternative minimum tax liability.
- They claimed the Connecticut earned income tax credit.
If none of these conditions applies, it’s not necessary to file a Connecticut resident income tax return.
Additionally, taxpayers must file a state tax return if their income exceeds the following amount for their filing status:
- $12,000 for those married filing separately.
- $15,000 for single filers.
- $19,000 for those filing as head of household.
- $24,000 for married filing jointly or qualifying widow(er) with a dependent child.
Connecticut sales tax rate: Table
With a sales tax rate of 6.35 percent, Connecticut ranks 12th highest sales tax rate in the country. The national average is 5.22 percent.
| Connecticut sales tax rates | ||||
|---|---|---|---|---|
| Sales tax rate | National rank | |||
| 6.35% | 12 | |||
| Source: Tax Foundation | ||||
Although Connecticut has a high tax rate when compared to the national average, the state does not levy local sales taxes. This brings the state’s total state and local sales tax rate to 6.35 percent, which ranks 33rd in the country.
Other things to know about Connecticut state taxes
The deadline to file Connecticut state taxes is April 15.
To learn more about filing taxes in Connecticut, visit the website for the Department of Revenue Service. The state also has an online portal — myconneCT — for filing and paying taxes online. Taxpayers can also visit the state’s Taxpayer Service Center (TSC).
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