Connecticut State Taxes: A Simple Guide

⚓Connecticut state income tax

Connecticut taxes personal income under its own rules and brackets, separate from the federal system. In general:

• •Residents over certain income thresholds usually must file a Connecticut income tax return.
• •Nonresidents may need to file if they earn Connecticut-source income.
• •The state has its own definitions of taxable income, deductions, and credits, which may differ from federal rules.

Most residents file a federal Form 1040 and a separate Connecticut return for the same tax year if they meet filing requirements.

🛒Sales and use tax

Connecticut imposes a state sales and use tax on many retail sales of goods and some services.

• •Some items (like certain groceries or medicines) may be exempt or taxed differently.
• •If you buy taxable goods from out of state or online without tax, you may owe use tax to Connecticut.

Businesses that sell taxable goods or services in Connecticut generally need to collect and remit sales and use tax to the state.

🏡Property taxes

Property taxes in Connecticut are set and collected primarily by cities and towns, based on the assessed value of real property such as homes and land.

• •Homeowners receive property tax bills from their town or city.
• •Property taxes fund local services, including schools and public safety.
• •Some homeowners may qualify for exemptions or relief programs, especially based on age, disability, or income.

🔗Putting Connecticut taxes together

A typical Connecticut resident may see several types of tax each year:

• •Federal income tax (Form 1040)
• •Connecticut state income tax
• •State sales and use tax
• •Local property taxes if they own a home

Understanding the basics of taxable income and how to file your taxes makes it easier to layer Connecticut's rules on top.