Connecticut Tax Brackets
How to read this: Only the income within each bracket is taxed at that rate. Your total tax is the sum across brackets.
| Income Range | Tax Rate |
|---|---|
| $0 - $10,000 | 2.00% |
| $10,000 - $50,000 | 4.50% |
| $50,000 - $100,000 | 5.50% |
| $100,000 - $200,000 | 6.00% |
| $200,000 - $250,000 | 6.50% |
| $250,000 - $500,000 | 6.90% |
| $500,000+ | 6.99% |
Brackets shown for single filers. Married filing jointly brackets may differ. Use the calculator above to see your specific situation.
Key Facts That Affect Your Take-Home Pay
- Connecticut uses a progressive income tax system with seven brackets, starting at 3% for the first $10,000 of income (single) or $20,000 (married) and escalating to a top rate of 6.99% for income above $500,000 (single) or $1,000,000 (married), making Connecticut's top rate one of the higher rates among progressive states.
- Connecticut's progressive brackets are relatively spread out at the bottom but compressed at higher income levels, meaning middle-income earners reach higher brackets quickly while very high earners pay the top 6.99% rate. For a $100,000 earner, income is taxed across multiple brackets creating an effective rate around 5%-5.5%.
- Connecticut does not impose income taxes at the local level, ensuring uniform paycheck deductions across all locations. All Connecticut residents have the same income tax structure—only the state progressive brackets apply.
Common Mistakes People Make
Misconception: 'Progressive tax means I'll pay the top 6.99% on all my income in Connecticut.' Reality: Connecticut's progressive system starts at just 3% for the first $10,000-$20,000 of income (depending on filing status), and most middle-income earners pay effective rates around 4%-5.5%, not 6.99%. The 6.99% rate only applies to income above $500,000 (single) or $1,000,000 (married). Someone earning $100,000 pays an effective rate around 5%-5.5% (~ $5,000-$5,500 annually).
Misconception: 'Connecticut exempts all retirement income like other states.' Reality: Connecticut only partially exempts Social Security and retirement income for residents with federal AGI below $75,000 (single) or $100,000 (married). Higher-income retirees may still pay Connecticut income tax on retirement distributions, unlike states that fully exempt retirement income regardless of income level This means Connecticut is less favorable for higher-income retirees compared to states with full retirement income exemptions.
Misconception: 'No local taxes means Connecticut is cheaper than other states.' While Connecticut avoids local income tax complications, the progressive income tax with relatively high rates (top 6.99%) combined with sales taxes (6.35%) and high property taxes (among the highest in the nation) can create a significant tax burden. A high earner in Connecticut pays 6.99% on income above $500,000, while high earners in flat-tax states like Pennsylvania pay 3.07% state (though PA may have local EIT). Factor in all taxes when comparing states.
One Thing to Know
Connecticut's retirement income exemption has an income threshold that catches many retirees off guard—if your federal AGI exceeds $75,000 (single) or $100,000 (married), you lose the exemption entirely. This creates a 'cliff effect' where a small increase in retirement income can trigger significant tax liability.
Important Notes
These calculations are estimates based on current tax law. Your actual take-home pay varies based on:
- Pre-tax deductions (401(k), health insurance, HSA, etc.)
- Your W-4 withholding elections
- Additional income or deductions at tax time
- Individual circumstances and tax situations
Tax rates are subject to change. Federal and state tax laws may be updated annually. This is not tax advice. For personalized help, consult a tax professional familiar with Connecticut tax laws.