2026 Tax Overview
Connecticut combines graduated income-tax rates from 2% to 6.99%, 6.35% general sales/use tax, and a $15 million 2026 estate and gift-tax exemption. Residents and movers should separate state, local, estate and inheritance rules rather than compressing them into one tax-burden percentage.
Individual Income Tax
For 2026 planning, graduated income-tax rates from 2% to 6.99%. Marginal rates are not effective rates. Filing status, deductions, credits, residency, source income and local taxes change liability. Use final tax-year 2026 instructions; a return filed in calendar 2026 usually reports tax year 2025.
Sales and Use Tax
6.35% general sales/use tax. Product categories, prepared meals, lodging, vehicles and local additions can use different rates. Delaware's gross receipts tax is imposed on business receipts and is not a consumer sales tax.
Property Tax
Property tax is primarily local. Assessors determine value and municipalities, counties, schools or special districts set levies. Review the actual parcel assessment, exemptions, credits, appeal rights and transfer effects instead of relying on a statewide average.
Estate and Inheritance Taxes
A $15 million 2026 estate and gift-tax exemption. Estate tax is imposed on an estate; inheritance tax generally depends on the beneficiary and relationship. They are not interchangeable. Maryland has both; New Jersey and Pennsylvania retain inheritance taxes; Delaware repealed its estate tax.
Local Income Taxes
Local income taxation is especially important in Maryland, New York and Pennsylvania. NYC, Yonkers, Maryland counties, Baltimore City, and Pennsylvania municipalities or school districts can materially change take-home pay. Verify work and residence jurisdictions separately.
Retirement Considerations
Social Security, pensions and retirement distributions receive state-specific treatment, exemptions or income limits. Verify final 2026 instructions. Property relief can depend on age, income, disability, occupancy and annual declarations such as Vermont's homestead filing.
Relocation Context
Compare the same income, filing status, home value and spending across locations. High-net-worth households should model domicile, estate ownership and beneficiary relationships. Commuters and remote workers should identify every state and locality that may claim source income.
Withholding and Estimated Payments
Withholding is a prepayment, not final liability. Update payroll forms after moving and account for local tax. Self-employment, investment income and multi-state work may require estimated payments. Reconcile against the final 2026 return.
What to Verify Before Moving
Confirm final 2026 schedules, local income-tax jurisdiction, exact sales-tax address, parcel bill, domicile evidence, estate threshold and inheritance-tax beneficiary class. Do not assume a neighboring state uses the same definitions.
Official Sources
- Connecticut official resource 1
- Connecticut official resource 2
- Connecticut official resource 3
- Connecticut official tax administration
Reviewed July 10, 2026. General information only; verify final rules, effective dates and local obligations with official agencies.