Connecticut's income tax brackets for 2024

Connecticut taxes income using a progressive tax system, meaning the rate increases as your income goes up. You do not pay one flat rate on all your earnings—instead, different portions of your income are taxed at different rates.

For the 2024 tax year, Connecticut has six tax brackets. If you are single, you pay 3% on income up to $21,600, then 5% on income between $21,600 and $54,450, then 5.5% on income between $54,450 and $115,000, then 6% on income between $115,000 and $230,000, then 6.5% on income between $230,000 and $575,000, and 6.99% on income above $575,000. The brackets are wider for married couples filing jointly, and narrower for married couples filing separately and heads of household.

These brackets adjust slightly each year for inflation, so the exact dollar amounts change annually. The Connecticut Department of Revenue Services publishes updated brackets in January of each tax year.

Key Takeaways

  • Connecticut's income tax rates range from 3% to 6.99% depending on your income level and filing status.
  • Your tax bracket depends on whether you file as single, married filing jointly, married filing separately, or head of household, and the brackets shift each year.
  • You pay the lowest rate only on the portion of income that falls in that bracket, not on your entire income.
  • Connecticut taxes wages, self-employment income, investment income, and retirement distributions, though some retirement income has special rules.

What income Connecticut taxes

Connecticut income tax applies to most forms of income you receive. This includes wages and salaries from employment, self-employment income if you run a business or freelance, interest and dividends from investments, capital gains from selling stocks or property, and distributions from retirement accounts like IRAs and 401(k)s.

Some types of income receive special treatment. Social Security benefits are not taxed in Connecticut. Military pensions and certain federal pensions may be partially or fully exempt, depending on when you retired and your age. Long-term capital gains (profits from assets held more than one year) are taxed the same as ordinary income—Connecticut does not offer a lower rate for them like the federal government does.

If you live in Connecticut but work in another state, you typically owe Connecticut tax on that out-of-state income. However, Connecticut has reciprocal agreements with some neighboring states that may reduce or eliminate this tax. You can claim a credit for taxes paid to other states to avoid paying tax twice on the same income.

How to calculate what you owe

To find your Connecticut income tax, start with your federal adjusted gross income (AGI)—the number from line 11 of your federal Form 1040. Connecticut uses this as the starting point and then makes adjustments specific to Connecticut law. Some adjustments add income back in (like certain deductions you took federally), and some subtract income (like exemptions for specific types of income Connecticut does not tax).

Once you have your Connecticut taxable income, you explore the tax brackets for your filing status. If you are single and your taxable income is $75,000, you would pay 3% on the first $21,600, then 5% on the next $32,850 (from $21,600 to $54,450), then 5.5% on the remaining $20,550 (from $54,450 to $75,000). Add those three amounts together to get your total tax before credits.

Connecticut offers tax credits that reduce what you owe, including a dependent exemption credit, a property tax credit for renters and homeowners, and credits for child and dependent care expenses. These credits are subtracted from your calculated tax. If credits exceed your tax, you may receive a refund.

Deductions and exemptions available in Connecticut

Connecticut allows you to claim a standard deduction or itemize deductions, similar to federal tax filing. For 2024, the Connecticut standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly. These amounts are slightly lower than the federal standard deduction, so some people who itemize federally may still use the standard deduction in Connecticut.

Connecticut also offers a dependent exemption credit rather than a deduction. You can claim a credit of $215 per dependent (as of 2024) if your income is below certain thresholds. This credit phases out as income increases, so high earners may not receive the full amount.

If you are over 65 or blind, Connecticut allows an additional exemption credit. The amount depends on your filing status and income level. You must be a Connecticut resident to claim these credits.

Who must file a Connecticut tax return

You must file a Connecticut return if your Connecticut gross income exceeds the filing threshold for your age and filing status. For most people under 65, this threshold is close to the standard deduction amount. If you are 65 or older, the threshold is higher. Even if you do not owe tax, filing may be worth it if you are due a refund from taxes withheld or if you can claim credits like the property tax credit.

Connecticut residents must file even if they have no Connecticut income, as long as they meet the income threshold. If you moved to or from Connecticut during the year, you may owe Connecticut tax only on income earned while you were a resident. You will need to file both a Connecticut return and a return for any other state where you lived.

Tax withholding and estimated payments

If you are an employee, your employer withholds Connecticut income tax from your paycheck based on the W-4 form you complete. You can adjust your withholding by changing your W-4 if you want more or less tax taken out. If too much is withheld, you get a refund when you file. If too little is withheld, you owe when you file.

If you are self-employed or have income that is not subject to withholding, you may need to make quarterly estimated tax payments to Connecticut. These are due on April 15, June 15, September 15, and January 15. If you do not pay enough throughout the year, you may owe a penalty when you file, even if you ultimately owe no tax.

You can check your withholding using the Connecticut tax calculator on the Department of Revenue Services website. This tool shows whether you are on track or need to adjust your W-4.

Frequently Asked Questions

Do I have to pay Connecticut income tax if I work in another state?

If you live in Connecticut and work in another state, you generally owe Connecticut tax on that income. However, Connecticut has reciprocal tax agreements with some states that may reduce or eliminate this tax. You can also claim a credit for taxes paid to the other state. Check the Department of Revenue Services website to see if your work state has a reciprocal agreement with Connecticut.

Is Social Security taxed in Connecticut?

No. Connecticut does not tax Social Security benefits, even if your federal return includes them as income. You can exclude Social Security from your Connecticut taxable income.

What happens if I do not pay my Connecticut income tax?

If you owe tax and do not pay by the April 15 important date, Connecticut charges interest on the unpaid amount and may assess penalties. The interest rate changes quarterly. If you cannot pay in full, you can request a payment plan from the Department of Revenue Services.

Can I deduct property taxes on my Connecticut return?

Connecticut does not allow a deduction for property taxes on your state return. However, you may be able to claim a property tax credit if you are a homeowner or renter and your income is below certain limits. This credit is separate from the deduction and is claimed on your Connecticut return.

What is the difference between Connecticut's tax brackets and the federal brackets?

Connecticut has its own tax brackets, rates, and income thresholds that are separate from federal brackets. Connecticut's top rate is 6.99%, while the federal top rate is 37%. You must calculate and pay both Connecticut and federal income tax on your earnings.