Connecticut State Taxes

Connecticut Income Tax

Connecticut has seven tax brackets ranging from 2% to 6.99%. The rates are marginal, so income that falls within the corresponding range is subject to tax at the specified rate. For example, a single person earning $98,000 would pay 2% on the first $10,000, 4.5% on income from $10,001 to $50,000, and 5.5% on the remaining income ($50,001 to $100,000).

Connecticut Individual Income Tax Rates

Tax Rate	Single & Married Filing Separately	Head of Household	Married Filing Jointly
2%	$0 – $10,000	$0 – $16,000	$0 – $20,000
3.5%	$10,000 – $50,000	$16,001 – $80,000	$20,001 – $100,000
5.5%	$50,001 – $100,000	$80,001 – $160,000	$100,001 – $200,000
6%	$100,001 – $200,000	$160,001 – $320,000	$200,001 – $400,000
6.5%	$200,001 – $250,000	$320,001 – $400,000	$400,001 – $500,000
6.9%	$250,001 – $500,000	$400,001 – $800,000	$500,001 – $1M
6.99%	> $500,000	> $800,000	> $1M

Who Must File?

Full-time Connecticut residents with earned or unearned income, as well as part-time and non-residents with Connecticut-source income, must file an income tax return if they:

• Have Connecticut income tax withheld from their wages,
• Make estimated income tax payments (state),
• Had a pass-through entity (PE) tax credit,
• Meet or exceed the gross income threshold for their filing status,
• Have a federal alternative minimum tax liability, or
• Are claiming the Connecticut Earned Income Tax Credit (EITC).

The income thresholds by filing statuses are as follows:

• Single – $15,000
• Head of Household – $19,000
• Married Filing Jointly and Surviving Spouses – $24,000
• Married Filing Separately – $12,000

Connecticut Sales Tax

Since 1947, the Connecticut state sales tax rate has been 6.35%. Although this is one of the highest in the U.S. (6^th), it’s actually on the lower end when local sales tax rates are factored into the equation. That’s because Connecticut is one of the few states that doesn’t levy sales tax at the local level. Over-the-counter (OTC) and prescription drugs, as well as groceries, are exempt from sales tax.

Connecticut Property Taxes

Connecticut has the second-highest median property tax in the country at $5,708. Connecticut property taxes are collected at the county level. Fairfield County has the highest average at $7,928 annually. Windham County currently has the lowest average property tax at $4,049 per year.

The state does offer a $1,000 property tax exemption for certain honorably discharged veterans who served a minimum of 90 days during wartime. The exemption is also extended to their survivors. There is an additional exemption for veterans who are eligible for the $1,000 exemption and meet certain income limits.

Connecticut Property Tax

Highest	$7928
Median	$5708
Lowest	$4049

Yearly Cost Per Resident

Connecticut Tax Holidays

Since 2000, Connecticut has offered a Sales Tax Free Week that begins on the third Sunday of August and runs until the following Saturday. Clothing and footwear under $100 are exempt from sales tax during this time.

Connecticut Tax Relief

Falling behind on your Connecticut taxes can create a stressful situation, especially as penalties and interest add to the amount you owe. Tax issues can arise for many reasons, from filing problems and unexpected financial challenges to business tax obligations. Whatever the cause, addressing an outstanding balance with the Connecticut Department of Revenue Services (DRS) early can help prevent the situation from progressing further.

If paying your Connecticut tax balance in full isn’t possible, you may have options. Depending on your circumstances and eligibility, the DRS may allow you to resolve your account through a payment extension, installment agreement, Offer in Compromise, or other available resolution methods. Finding an appropriate solution may also help you avoid collection measures such as tax liens, wage garnishments, and levies.

Knowing what to expect from Connecticut’s collection process is an important part of determining your next steps. By learning about the state’s tax relief options and taking action on your account, you can find a path toward resolving your outstanding tax obligations.

Common Connecticut State Tax Problems

How Connecticut Collects Tax Debt

If you don’t pay your Connecticut income taxes on time, the Department of Revenue will send a billing notice for your unpaid tax debt.

Should you fail to respond or pay the balance due, the state will move to active enforcement. This may include statutory liens on your real estate and personal property, as well as wage garnishment and bank levies. The state may also request that your federal tax refund be diverted to clear any past-due state tax liability.

Additional enforcement escalation may also include civil litigation or criminal charges.

It’s important to note that penalties and interest continue to accrue until the balance is paid, so addressing your tax debt as early as possible can help you avoid additional costs and more serious collection actions.

Billing notices sent to taxpayer

Active enforcement and seizure

Criminal and legal escalation

Connecticut State Tax Relief Options

Connecticut offers several tax relief options, including:

• Income Tax Payment Plans – Connecticut offers a 12-month payment plan for individuals who owe less than $50,000 and are current on their tax filings.
• Penalty Waiver – Individuals may be eligible for a penalty waiver if failure to pay on time was due to reasonable cause. All tax and interest must be paid before the waiver request is filed (Form DRS-PW).
• Offer in Compromise – The Commissioner or a designated agent may approve an Offer in Compromise (OIC) for the following reasons:
  • Doubt as to liability
  • Doubt as to collectibility

To apply for an OIC, submit Form CT-656a (individual) or Form CT-656 (business).

• Payment Extension – If you are experiencing a financial hardship, the CT Department of Revenue may grant a 6-month payment extension. You will need to submit Form CT-1127, Application for Extension of Time for Payment of Income Tax, on or before the original due date to request the extension.

If you’re experiencing financial hardship and can’t pay your Connecticut income tax bill, contact the Department of Revenue as soon as possible by calling 860-297-5962.

When to Seek Tax Relief Help

If you’re experiencing any of the following, it may be time to explore your tax relief options:

The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.

Connecticut Tax Relief FAQs

How do I set up a Connecticut payment plan?

If you can’t pay your Connecticut income tax in full by the deadline, you may qualify for monthly payments (up to 12 months) through an installment agreement. To request a payment plan, you’ll need to log into your myconneCT account and select the Summary tab. From there, click on the “Request Payment Plan” link and complete the online application.

What happens if I ignore Connecticut tax notices?

Ignoring notices from the CT Department of Revenue can result in additional penalties and interest. If left unpaid, the state may escalate to forced collections, including wage garnishments, bank levies, tax liens, or other methods allowed by law. Responding to notices as early as possible can help you avoid more serious enforcement actions.

Can Connecticut garnish my wages for unpaid taxes?

Yes, the state can garnish your wages for unpaid state taxes. They have the legal authority to issue administrative wage attachment (garnishment orders) without a court order. The maximum is 25% of your disposable earnings.

Can Connecticut levy my bank account?

Yes. The Connecticut Department of Revenue can issue tax warrants to seize your bank account funds without a court order. You generally have 15 days from the levy notice to file an objection, or the funds will be given to the state.

How long does Connecticut have to collect back taxes?

Connecticut generally has 10 years to actively collect assessed income tax liabilities. If the state files a tax lien, however, the time limit is removed, meaning they can collect the secured debt indefinitely.

Connecticut Tax Resources

If you need assistance preparing your Connecticut state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.

You can also visit the Connecticut State Department of Revenue Services website for additional resources.

• Tax Forms & Instructions
• Customer Service phone number: 800-382-9463 or 860-297-5962
• For general questions or to schedule an appointment, email DRS@ct.gov
• myconneCT – file returns, check refund status, and more