The Connecticut income tax applies to Connecticut residents, part-year residents, and nonresidents with income from Connecticut sources. (See the Connecticut income tax instruction booklets to determine your residency status.) The tax is computed on your Connecticut taxable income. To compute your Connecticut taxable income, subtract your Connecticut personal exemption from your Connecticut adjusted gross income. If your Connecticut adjusted gross income is less than or equal to the maximum exemption amount for your filing status, you do not owe any Connecticut income tax. Personal Exemptions: The maximum personal exemption level for single filers is being increased annually until taxable year 2012. The following are the changes for taxable years 2005 through 2012: Taxable Year Maximum Personal Exemption $1,000 Reduction in Exemption for January 1, 2005 $12,625 $25,250 January 1, 2007 $12,750 $25,500 January 1, 2008 $13,000 $26,000 January 1, 2009 $13,500 $27,000 January 1, 2010 $14,000 $28,000 January 1, 2011 $14,500 $29,000 January 1, 2012 $15,000 $30,000
The Connecticut income tax applies to Connecticut residents, part-year residents, and nonresidents with income from Connecticut sources. (See the Connecticut income tax instruction booklets to determine your residency status.) The tax is computed on your Connecticut taxable income.
To compute your Connecticut taxable income, subtract your Connecticut personal exemption from your Connecticut adjusted gross income. If your Connecticut adjusted gross income is less than or equal to the maximum exemption amount for your filing status, you do not owe any Connecticut income tax.
Personal Exemptions: The maximum personal exemption level for single filers is being increased annually until taxable year 2012. The following are the changes for taxable years 2005 through 2012:
Maximum Personal Exemption
$1,000 Reduction in Exemption for
January 1, 2005
January 1, 2007
January 1, 2008
January 1, 2009
January 1, 2010
January 1, 2011
January 1, 2012
The maximum personal exemption levels for married filing separately filers, head of household filers, and married filing jointly filers remain unchanged.
Tax rate: The tax rate is 3% on the first:
The remaining income is taxed at 5%.
Property Tax Credit: A property tax credit is also available to resident individuals for property taxes paid to a
The maximum property tax credit is $500 per return for the 2006 taxable year. Depending on the amount of property taxes you paid to a
See Informational Publication 2006(16), Q & A: Income Tax Credit for Property Taxes Paid to Connecticut Political Subdivision, for more information.
Credit for Income Taxes Paid to a Qualifying Jurisdiction: If you are a resident of Connecticut and if any part of your income was taxed by a qualifying jurisdiction, you may be able to claim a credit against your Connecticut income tax liability for qualifying income tax payments you made. See the current year instruction booklet for Form CT-1040, Connecticut Resident Income Tax Return, for more information.
Estimated Payments: Employers withhold
Alternative Minimum Tax
The tax must be reported on Form CT-6251,
Generation-Skipping Transfer Tax
For estates of decedents dying before
For estates of decedents dying on or after
If the sum exceeds $2 million,
If the sum is $2 million or less,
See Special Notice 2005(10), 2005 Legislation Repealing the Succession Tax and Amending the
If you made a gift, you may be required to file federal Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and Form CT-706/709, Connecticut Estate and
Legislation enacted in 2005: The
See Special Notice 2005(10), 2005 Legislation Repealing the Succession Tax and Amending the
Local Real Estate and Personal Property Taxes
Real estate and personal property are subject to this tax, with some statutory exemptions. Communities levy property tax to fund local government. Neither the state nor its counties levy a property tax. For further information about local real estate and personal property taxes, contact the assessor in the city or town where the property is located, write to the Intergovernmental Policy Division, Office of Policy and Management, 450 Capitol Avenue, Mail Stop 54 FOR, Hartford CT 06106-1308, or visit www.ct.gov/OPM the Office of Policy and Management website.
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.
Homeowner/Renter Tax Credit: An annual property tax credit or rent rebate is available to residents, age 65 or older, or to a surviving spouse, age 50 or older, who meet certain residence and income requirements. Regardless of age, a totally and permanently disabled person is also eligible. Contact the assessor in your town or city for details and forms.
Veteran Exemption: A variable, annual tax exemption on the assessed value of an owner-occupied dwelling or on a motor vehicle is available to any qualified veteran or surviving spouse. Contact the assessor in your town or city for details and forms.
Real Estate Conveyance Tax
A state and municipal real estate conveyance tax is imposed on deeds conveying real estate where the consideration for the interest in property equals or exceeds $2,000. A deed for less than $2,000 in consideration is exempt from this tax, but may be subject to the gift tax. A deed of the principal residence of any person receiving property tax benefits for the elderly is exempt from the state tax but subject to the municipal tax. The state tax rate on the consideration received for the real estate is as follows:
* If mortgage payments are more than six months delinquent and property is conveyed to a financial institution.
Those conveying the property pay the state and municipal taxes. The grantor/seller must present a separate check to the town clerk, payable to the Commissioner of Revenue Services, in payment of the state tax when recording the deed.
A 6% tax is imposed on the sale or rental of most goods and the sale of certain services. However, there are exemptions such as food; all purchases made with food stamps; utility charges for residential property; household fuel; prescription drugs; certain nonprescription drugs; clothing under $50; newspapers; magazines by subscription; yarn; and materials for noncommercial sewing used to make clothing. Computer and data processing services are taxable at 1%. Internet access services are exempt.
When the seller of goods or provider of taxable services does not collect sales tax, the buyer must pay use tax at the same rate as the sales tax. Typically, if you purchase goods from mail order or catalog companies or over the Internet and have the goods shipped to
You pay the use tax for purchases you made during the prior calendar year on your
Fortified and sparkling wines
Still wines (from licensed farm winery)
Beer ($3.00 per half barrel, $1.50 per quarter barrel)
Alcohol in excess of 100 proof is taxed at $4.50 per proof gallon. Most alcoholic cider is taxed at the beer rate.
You may legally bring into
Under certain conditions, the direct shipment of wine to consumers and retailers in
The dues tax is a 10% tax levied on dues and initiation fees of a social, athletic, or sporting club that is either owned or operated by its members. The club is exempt from the dues tax if the annual dues of every member and any initiation fee are each $100 or less. Lawn bowling clubs are exempt from dues tax. See Informational Publication 2003(11), Q & A: The Dues Tax.
A 10% admissions tax applies to admission charges to any place of amusement, entertainment, or recreation. Charges over $5 to motion picture shows are subject to 6% admissions tax.
Certain venues are specifically exempt from admissions tax. Productions featuring live entertainment by actors or musicians at non-profit theaters and playhouses exempt under I.R.C. §501 are exempt from the tax. Also exempt from the tax are admission charges of $5 or less to motion picture shows and admission charges to carnivals, amusement rides, and establishments whose admissions charges would have been subject to the cabaret tax prior to its repeal on July 1, 1999.
A tax is imposed on motor vehicle fuels used to propel motor vehicles on public roads and highways. The rate on gasoline or gasahol is 25¢ per gallon and the rate for diesel fuel is 26¢ per gallon.
Motor Vehicle Fees
There is an annual registration fee for boats in lieu of a local property tax. For information, contact the DMV at 1-800-842-8222 (in-state) or 860-263-5700 (from anywhere).
Effect on Other Documents: Informational Publication 2006(17) modifies and supersedes Informational Publication 2005(25),
Effect of This Document: An Informational Publication issued by DRS addresses frequently asked questions about a current position, policy, or practice, usually in a less technical question and answer format.
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