Connecticut Taxes

Property taxes: Real estate and personal property are subject to property tax with some statutory exceptions. Taxes are levied by communities to support local budget requirements. Neither the state nor the counties levy property taxes. Property tax relief is available to persons age 65 and over, provided they meet certain residence and income requirements.

Property is assessed at 70% of value no later than the date any reassessment takes place in a municipality. Mill rates are set annually around July 1st. Most taxes are payable in two to four installments over the year. However, payment in full at one time is required by a few municipalities.

Personal property, taxed at the same mill rate as real estate, includes cars, airplanes, boats, and motorcycles. Motor vehicles registered between October 2 and June 30 are assessed and taxed as if they were registered on October 1st.

State Income Tax: The state income tax is 4.5% of Connecticut taxable income. The tax is based on the federally "adjusted gross income" which includes dividend and interest income. The tax table includes all exemptions and credits but does not provide for deductions and dependents. Exemptions and credits are applied on a graduated basis; the higher the adjusted gross income the smaller the exemptions and credit.

Sales and Use Tax: Connecticut has a 6% sales tax. However, there are a number of exceptions including food, rentals of real property, utility charges, prescription drugs and non-prescription drugs for internal use, household fuels, articles of clothing under $50.00 and children's clothing.

Goods and services which would have been subject to the Connecticut sales tax had these goods and services been purchased from a Connecticut retailer are subject to the Connecticut 6% use tax.

Conveyance Tax: State and local real estate conveyance taxes, paid by the seller, are levied and due when real estate changes title. The local tax is $1.01 per $1,000 of the sales price. The state tax is $5.00 per $1,000 of the sales price.