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Connecticut's State and Local Tax Burden Third-Highest in Nation
Connecticut's 2009 state and local tax burden of 12.0% of income stands well above the national average of 9.8%. Connecticut's tax burden has increased overall from 10.9% (13th nationally) in 1977 to 12.0% (3rd nationally) in 2009. Connecticut taxpayers pay $4,091 per capita in state and local taxes.
Connecticut’s 2011 Business Tax Climate Ranks 47th
Connecticut ranks 47th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states rank as follows: New York (50th), Massachusetts (32nd), New Hampshire (7th), Vermont (38th) and Rhode Island (42nd).
Connecticut's Individual Income Tax System
Connecticut's personal income tax system consists of three separate brackets with a top rate of 6.5% kicking in at an income level of $500,000. That top rate ranks 19th highest among states levying an individual income tax. In 2009, state-level individual income tax collections were $1,816 per person, which ranked second-highest nationally.
Connecticut Sales and Excise Taxes
Connecticut levies a 6% general sales or use tax on consumers, above the national median of 5.85%. In 2007 combined state and local general and selective sales tax collections were $1,424 per person, which ranked 21st highest nationally. Connecticut's gasoline tax stands at 41.9 cents per gallon (4th highest nationally), while its cigarette tax stands at $3.00 per pack of twenty (2nd highest). Additionally, Connecticut levies a 5.8% gross receipts earnings tax on oil companies, which is collected at wholesale. The sales tax was adopted in 1947, the gasoline tax in 1921 and the cigarette tax in 1935.
Connecticut Property Taxes Rank Among the Nation's Highest
Connecticut's local governments collected $2,167.29 per capita in property taxes during fiscal year 2006, which is the latest year available from the Census Bureau. Connecticut is one of the 13 states that collect no state-level property taxes. Its property tax collections per capita rank 2nd highest nationally, behind only New Jersey.
