DRS: IP 92(3), Personal Taxes

 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 

This Informational Publication has been superseded by IP 92(3.1)

IP 92(3)                                

Personal Taxes


This publication is intended as a general guide to Connecticut's taxes for the individual. While it does not answer every question about Connecticut taxes, it will provide answers to some of the most common inquiries.


INCOME TAX: There is a state income tax on Connecticut residents and on nonresidents who have income from Connecticut sources. In 1992 there will no longer be a separate tax on capital gains, dividends and interest income.  The state income rate for 1992 and thereafter is 4.5% of taxable income. To compute your  taxable income, subtract your personal exemption from your adjusted gross income. Maximum personal exemption levels are:

  • $12,000 - single filers (or married filing separately) with adjusted gross income up to $24,000.
  • $19,000 - head of household with adjusted gross income up to $38,000.
  • $24,000 - married filing jointly with adjusted gross income up to $48,000.

Exemptions are reduced by $1,000 for every additional $1,000 of adjusted gross income. 

Tax credits of up to 75% are also available, depending upon income level.

Income that is taxable for federal income tax purposes is, in general, also taxable for Connecticut income tax purposes.

Employers will withhold tax from the wages of residents and of nonresidents who work in Connecticut. Those who have more than $1,000 in Connecticut taxable income from which state taxes will not be withheld, are required to file estimated tax payments.

Estimates are due at the same time as federal estimated payments: April 15, June 15, September 15, and January 15.  The final return is due on or before April 15 for the preceding taxable year.


CAPITAL GAINS, DIVIDENDS, AND INTEREST TAX:  The separate tax on capital gains, dividends and interest income was repealed effective January 1, 1992.


SUCCESSION TAX: There is a Connecticut inheritance tax. For a Connecticut resident, the tax applies to all property, except for real property and tangible personal property which is located outside Connecticut. For nonresidents, it applies only to real property and tangible personal property located in Connecticut. The tax rate depends on the relationship of the beneficiary to the decedent and the size of the estate. Rates are progressive from 4.29%. There is a total exemption from tax for a surviving husband or wife.


ESTATE TAX: This is the federal pick-up tax.  The tax is that amount by which the federal credit allowed for state death taxes exceeds the total of death taxes actually paid to all states.  It is applicable only in very large estates, usually in excess of $3 million.

ESTATE INCOME TAX:  The separate tax on estate income has been repealed for taxable years beginning January 1, 1991.  Estates and trusts are now subject to the income tax. 


GIFT TAX: In general, gifts made on or after September 1, 1991 by resident and nonresident individuals are subject to the Connecticut gift tax.  Residents are taxed on all gifts of intangible property and of real property and tangible personal property situated in Connecticut.  Nonresidents are taxed on gifts of real and tangible personal property situated in Connecticut and intangible personal property situated in Connecticut if employed in carrying on a trade or business in Connecticut.   In general, gifts made to a particular donee are not subject to the Connecticut gift tax unless the value of all such gifts to any particular donee during the calendar year exceeds $10,000.  You may request a copy of SN 92(1) if you want further information concerning the gift tax.


PROPERTY TAX: Real estate and personal property are subject to this tax, with some statutory exemptions. It is levied by communities to support local budget requirements.  Neither the state nor its counties levy a property tax. 

All property is assessed at 70% of value at the time of the last municipal revaluation, except for motor vehicles which are assessed at 70% of average retail value and personal property is assessed at 70% of the current market value.

October 1 is the assessment date for all municipalities. All owners of personal property, other than registered motor vehicles, must file a declaration with the assessor on or before November 1.

Property tax relief is available to persons who have reached the age of 65, provided they meet certain residence and income requirements. There is no age requirement for those who are 100% disabled. Application for this relief must be made at the local assessor's office.

There is a local conveyance tax when real estate is sold.  The tax rate is eleven one-hundredths of one percent of the consideration for the interest in real property.


REAL ESTATE CONVEYANCE TAX:  A state real estate conveyance tax imposed on the consideration of the interest in realty conveyed by deed at the following rates:  

Unimproved land                                                        0.5%

Residential property (other than residential dwelling)        0.5%

Nonresidential property (other than unimproved land)      1.0%

Residential dwelling
    - Portion not exceeding $800,000                                 0.5%
    - Portion exceeding $800,000                                       1.0%

Property conveyed by a delinquent mortgagor 
if the property is more than six months delinquent
and property is conveyed to a financial institution
          0.5%

It is paid by those conveying the property.  The grantor/seller must present a separate check, payable to the Commissioner of Revenue Services, in payment of this tax, to the Town Clerk when recording the deed.  This tax is in addition to the conveyance tax imposed by municipalities.  There are certain exemptions including an exemption for conveyance where the consideration is less than $2,000.


SALES AND USE TAXES: Connecticut has a 6% tax on the sale or rental of most goods and certain services. However, there are exemptions: food; purchases made with food stamps; real property rentals; utility charges for residential property; household fuel; prescription drugs; internal certain non-prescription drugs; clothing under $50 (including children's clothing), materials for sewing; newspaper and magazine subscriptions. 

An Individual Use Tax Return should be filed annually for any purchases brought into the state by a resident of this state when the purchase price exceeds $25. The use tax is due on all taxable purchases made by telephone and mail order.  If the purchase was subject to the tax of another state, the difference between the Connecticut tax rate and that of the other state should be reported. Long-held possessions of a family moving to Connecticut are not subject to this tax.


MOTOR FUEL TAX: There is a 26 per gallon state tax on motor fuel used to propel highway vehicles, 25 per gallon tax on gasohol and 18 per gallon tax on diesel fuel.


MOTOR VEHICLE FEES: There is a two year registration fee of $62 for passenger cars; operator licenses are issued every four years for $31. For information, contact the Connecticut Department of Motor Vehicles at 203-566-3781.


BOAT REGISTRATION FEES: There is an annual registration fee for boats in lieu of a local property tax. For information, contact the Connecticut Department of Motor Vehicles at 203-566-3781.


ALCOHOLIC BEVERAGE AND CIGARETTE TAXES: Per gallon beverage taxes are assessed as follows:  Liquor, $4.50; sparkling wine, $1.50; wine, 60, beer, 20; and liquor coolers $2.05.

State tax on cigarettes is 45 per pack of 20. The Tobacco Products Tax (excluding cigarettes) is 20% of the wholesale price.


ADMISSIONS, DUES AND CABARET TAX: A 10% tax is levied on dues and initiation fees of social, athletic, and sporting clubs, but not organizations operating under the "lodge" system.

A 10% admissions tax applies to admissions charges of $1 or more to places of amusement, entertainment or recreation. However, any production featuring live entertainment by actors or musicians at non-profit theaters and playhouses exempt under Section 501 of the Internal Revenue Code is exempt from the tax. Also, the exemption for motor picture shows includes admission charges of $1.99 or less.  A 5% cabaret tax generally applies to charges for food, drink, admissions, or merchandise where music, entertainment or dancing privileges are furnished in conjunction with the sales or serving of alcoholic beverages for profit.  

If you would like additional information on any of the following subjects, please call our Forms Unit at (203) 297-4767 to request a copy of the form indicated:

SN 92(1), Gift Tax
IP 91(3), Q & A on Connecticut Use Tax
IP 92(2), Connecticut State Income Tax Information for Military Personnel and Veterans
IP 92(4), State Tax Tips for Senior Citizens
IP 92(5), Estimated Income Taxes for 1992


FOR FURTHER INFORMATION: Please call the Department of Revenue Services Research Unit during business hours, Monday through Friday:

  • 1-800-382-9463 (in-state), or
  • 860-297-5687 (anywhere)
  • TTY, TDD and Text Telephone users only may transmit inquiries 24 hours a day, seven days a week by calling 860-297-4911.

FORMS AND PUBLICATIONS: Forms and publications are available 24 hours a day, seven days a week:

  • Internet: preview and download forms and publications from the DRS web site: http://www.ct.gov/drs
  • Telephone: Call 1-800-382-9463 (in-state), or 860-297-5687 (anywhere).

IP 92(3)
Issued: 3/10/92