Filing Status Options: The Connecticut filing status options are single, filing jointly for federal and Connecticut, filing jointly for Connecticut only, filing separately for federal and Connecticut, filing separately for Connecticut only, head of household, and qualifying widow(er) with dependent child.
Any reference in this publication to filing jointly includes filing jointly for federal and Connecticut and filing jointly for Connecticut only. Likewise, filing separately includes filing separately for federal and Connecticut and filing separately for Connecticut only.
Tax Rate: For taxable years beginning on or after January 1, 2011, the rate of tax for Connecticut taxable income for single filers and taxpayers filing separately is:
· 3% on the first $10,000;
· 5% on the excess over $10,000, but not over $50,000;
· 5.5% on the excess over $50,000, but not over $100,000;
· 6% on the excess over $100,000, but not over $200,000;
· 6.5% on the excess over $200,000, but not over $250,000;
· 6.7% on the excess over $250,000.
The rate of tax for Connecticut taxable income for head of household filers is:
· 3% on the first $16,000;
· 5% on the excess over $16,000, but not over $80,000;
· 5.5% on the excess over $80,000, but not over $160,000;
· 6% on the excess over $160,000, but not over $320,000;
· 6.5% on the excess over $320,000, but not over $400,000;
· 6.7% on the excess over $400,000.
The rate of tax for Connecticut taxable income for taxpayers filing jointly and qualifying widow(er) with dependent child is:
· 3% rate on the first $20,000 of Connecticut taxable income;
· 5% on the excess over $20,000, but not over $100,000;
· 5.5% on the excess over $100,000, but not over $200,000;
· 6% on the excess over $200,000, but not over $400,000;
· 6.5% on the excess over $400,000, but not over $500,000;
· 6.7% on the excess over $500,000.
Phase-Out of the 3% Rate: For taxable years beginning on or after January 1, 2011, the 3% rate is phased out for individuals with Connecticut adjusted gross income (AGI) over the following thresholds:
$56,500 for single: for each $5,000 (or part of $5,000) by which the taxpayer’s Connecticut AGI exceeds $56,500, the amount to which the 3% tax rate applies is reduced by $1,000.
$50,250 for filing separately: for each $2,500 (or part of $2,500) by which the taxpayer’s Connecticut AGI exceeds $50,250, the amount to which the 3% tax rate applies is reduced by $1,000.
$78,500 for head of household: for each $4,000 (or part of $4,000) by which the taxpayer’s Connecticut AGI exceeds $78,500, the amount to which the 3% tax rate applies is reduced by $1,600.
$100,500 for filing jointly or qualifying widow(er): for each $5,000 (or part of $5,000) by which the taxpayer’s Connecticut AGI exceeds $100,500, the amount to which the 3% tax rate applies is reduced by $2,000.
The amount not taxed at the 3% rate is taxed at the 5% rate.
Recapture Tax Amount for Taxpayers in Higher Income Brackets: For taxable years beginning on or after January 1, 2011, a taxpayer whose Connecticut adjusted gross income (AGI) exceeds the income thresholds specified below, in addition to computing his or her Connecticut income tax liability using the applicable tax rates, and in addition to applying the 3% phase-out provision, is required to add the following recapture amount of tax as follows:
Single and filing separately: $75 for each $5,000 (or part of $5,000) by which the taxpayer’s Connecticut AGI exceeds $200,000. The maximum recapture amount is $2,250.
Head of household: $120 for each $8,000 (or part of $8,000) by which the taxpayer’s Connecticut AGI exceeds $320,000. The maximum recapture amount is $3,600.
Filing jointly or qualifying widow(er): $150 for each $10,000 (or part of $10,000) by which the taxpayer’s Connecticut AGI exceeds $400,000. The maximum recapture amount is $4,500.
Taxable Income: To compute your Connecticut taxable income, subtract your personal exemption from Connecticut AGI. If your Connecticut AGI is less than or equal to the maximum personal exemption amount for your filing status, you do not owe any Connecticut income tax.
Maximum personal exemption amounts are:
$12,000 filing separately
For every $1,000 (or part of $1,000) of Connecticut AGI over $24,000, the personal exemption amount is reduced by $1,000.
$13,000 single filers (for 2010 through 2011 taxable years)
For every $1,000 (or part of $1,000) of Connecticut AGI over $26,000, the personal exemption amount is reduced by $1,000.
$19,000 head of household
For every $1,000 (or part of $1,000) of Connecticut AGI over $38,000, the personal exemption amount is reduced by $1,000.
$24,000 filing jointly or qualifying widow(er) with dependent child
For every $1,000 (or part of $1,000) of Connecticut AGI over $48,000, the personal exemption amount is reduced by $1,000.
Computing Your Income Tax: The example below shows how to compute the income tax liability for a resident couple filing jointly. The tax is rounded to the nearest whole dollar.
|CT taxable income
|Calculation of Tax
|Income taxable at 3%
|Tax rate (.03)
|| x .03
|Income taxable at 5%
|Tax rate (.05)
Personal tax credit
Total tax of $650 x 15% from Table C in the
Form CT-1040 Connecticut resident income
tax instructions booklet
Tax due before subtracting any
property tax credit
Property Tax Credit: A property tax credit is also available to resident individuals for property taxes paid to a Connecticut political subdivision on a primary residence, a motor vehicle, or both. Generally, this credit is allowed for property tax bills first becoming due during a taxable year and paid during the taxable year. The maximum property tax credit is $300 per return for the 2011 taxable year. Depending on the amount of property taxes you paid to a Connecticut municipality and your Connecticut AGI, the property tax credit may be reduced or you may not be eligible for a credit. The amount of credit is reduced by 15% for each $10,000, or part of $10,000, ($5,000, or part of $5,000, for married taxpayers filing separately) increase in Connecticut AGI over a certain threshold. For taxable year 2011, the maximum property tax credit AGI limitation is $56,500 for taxpayers filing single; $50,250 for married taxpayers filing separately; $78,500 for taxpayers filing as head of household; and $100,500 for taxpayers filing jointly.
Spouses or civil union partners who file a joint Connecticut income tax return may include property tax bills for which each spouse is individually or jointly liable. If you are claiming a property tax credit, you must complete and attach the property tax schedule to your return or the Department of Revenue Services (DRS) will disallow your credit.
See Informational Publication 2009(24), Q & A: Income Tax Credit for Property Taxes Paid to a Connecticut Political Subdivision.
Earned income tax credit: For taxable years beginning on or after January 1, 2011, a Connecticut resident taxpayer may claim an earned income tax credit (CT-EITC) against the Connecticut income tax due for the taxable year.
The amount of the CT-EITC is 30% of the EITC claimed and allowed on the federal income tax return for the same taxable year.
Connecticut resident individuals who file a federal joint return but who are required to file a separate Connecticut income tax return may claim the CT-EITC calculated as follows:
Resident individual’s federal AGI as reported on the Connecticut
30% of individual return
Federal X ----------------------------------------------
EITC Married couple’s federal AGI as reported on the joint federal return
If the CT-EITC exceeds the taxpayer’s Connecticut income tax liability, the excess is considered an overpayment and will be refunded without interest.
Credit for Income Taxes Paid to a Qualifying Jurisdiction: If you are a resident of Connecticut and any part of your income was taxed by a qualifying jurisdiction or if you are a part-year resident of Connecticut and any part of your income earned during the residency portion of your taxable year 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 have made. See the current year instruction booklets for Form CT-1040 and Form CT-1040NR/PY.
Withholding From Your Pension: If you are a Connecticut resident and receive a pension, you may be able to have Connecticut income tax withheld from your pension payments. Contact your pension payer and ask for Form CT-W4P, Withholding Certificate for Pension or Annuity Payments. Retired federal civil service employees must contact the U.S. Office of Personnel Management (USOPM) to start, stop, or change Connecticut income tax withholding. Call USOPM at 1-888-767-6738 to use the automated request system or 1-202-606-1800 to speak with a representative.
If you are a nonresident and receive a pension, your pension is not subject to Connecticut income tax even if a former employer pays you a pension for services performed while you were employed in Connecticut.
Estimated Income Tax Filing Requirements: You must make estimated Connecticut income tax payments if your Connecticut income tax due after tax credits minus Connecticut income tax withheld is $1,000 or more and you expect your Connecticut income tax withheld to be less than your required annual payment. Estimated payments are generally made in four equal installments: April 15, June 15, September 15 of the current year, and January 15 of the next year.
However, if your income varies throughout the year, you may be able to reduce or eliminate the amount of one or more estimated payments by using the annualized installment method. See Informational Publication 2010(27), Estimated Connecticut Income Taxes, and Informational Publication 2010(28), A Guide to Calculating Your Annualized Estimated Income Tax Installments and Worksheet CT-1040 AES.
If you are required to make estimated payments for taxable year 2011, the estimated payments due September 15, 2011 and January 15, 2012 must reflect the new tax rates and additional provisions. Visit the DRS website at www.ct.gov/DRS for additional information.
Sales and Use Tax
A number of changes were made to the sales and use tax laws, effective July 1, 2011. The information provided below reflects these changes. See Special Notice 2011(9), 2011 Legislative Changes Affecting Sales and Use Taxes, for more information; in addition, DRS is posting answers to commonly-asked questions about the changes to sales and use taxes on its website at www.ct.gov/drs.
Retail sales or leases of tangible personal property and certain services are generally subject to sales and use taxes at a 6.35% rate. Computer and data processing services remain taxable at a 1% rate.
Some sales or leases of tangible personal property are now taxable at a 7% rate:
- Most motor vehicles with a sales price of more than $50,000. See Special Notice 2011(10), 2011 Legislative Changes Affecting Motor Vehicles, for additional guidance regarding the tax changes affecting motor vehicles;
- Vessels with a sales price of more than $100,000;
- Items of jewelry, whether real or imitation, with a sales price of more than $5,000; and
- Articles of clothing or footwear intended to be worn on or about the human body, or a handbag, luggage, umbrella, wallet or watch, with a sales price of more than $1,000.
Effective July 1, 2011, sales of the following services were made taxable:
Services rendered in the voluntary evaluation, prevention, treatment, containment or removal of hazardous waste or other contaminants of air, water or soil;
Valet parking provided at any airport;
Yoga instruction provided at a yoga studio;
Motor vehicle storage services;
Packing and crating services;
Motor vehicle towing and road services;
Intrastate transportation services provided by livery services, with certain exceptions, including nonemergency medical transportation provided under the Medicaid program, certain paratransit services and dial-a-ride services;
Pet grooming, pet boarding services, and pet obedience services;
Services in connection with a cosmetic medical procedure;
Manicure services, pedicure services and all other nail services; and
Effective July 1, 2011, the following exemptions were repealed:
- Clothing and footwear under $50;
- Nonprescription drugs and medicines, and smoking cessation products; and
- Cloth or fabric for noncommercial sewing, and yarn for noncommercial use.
Some items and services not subject to sales or use taxes include:
- All newspapers, magazines by subscription;
- Internet access services;
- Current United States and Connecticut flags;
- Diabetic supplies such as test strips and tablets, lancets and glucose monitoring equipment, and repair and replacement parts for the equipment;
- Doctor, dentist, medical laboratory, lawyer, and travel agent fees;
- Eyeglasses, dentures, hearing aids, and hearing aid batteries;
- Instruction classes such as knitting, sewing, music, ballroom dancing, etc.;
- Adult diapers and disposable pads for incontinence;
- Prescription drugs, syringes, and needles;
- Support hose specially designed to aid in the circulation of blood purchased by persons with a medical need for the hose;
- Oxygen and oxygen equipment, customized trusses and braces, crutches, walkers, wheelchairs, and inclined stairway chairlifts, and repair and replacement part services for the equipment;
- Repair services and repair and replacement parts for artificial limbs, artificial eyes, hearing aids, and other equipment used to support vital life functions;
- Telephone equipment designed exclusively for deaf or blind persons;
- Electricity and gas for residential use;
- Closed circuit television equipment used as reading aids by visually impaired persons;
- Equipment for people with physical disabilities installed in motor vehicles, including when it has previously been installed in a motor vehicle that is sold by a licensed motor vehicle dealer for use by a person with physical disabilities, and repair and replacement parts for the equipment;
- Fuel for residential heating or cooking such as oil, propane, kerosene, wood, coal, and charcoal;
- Shoe repair services;
- Items purchased in the Supplemental Nutrition Assistance Program;
- Food products for human consumption: The exemption does not include meals, carbonated beverages, candy, and alcoholic beverages;
- Food products sold through coin-operated vending machines;
- Sales of food, meals, candy, confectionery, and beverages to persons in health care facilities. Health care facilities include assisted living facilities, senior centers, day care centers, hospitals, residential care homes, convalescent homes, nursing homes, and rest homes;
- Meals delivered to homes of elderly persons and provided by special programs, such as Meals on Wheels;
- Labor for many home repairs and services including plumbing, electrical, refuse removal, septic cleaning services, painting, staining, roofing, wallpapering, paving, siding, and exterior sheet metal work;
- Landscaping and horticulture services, window cleaning, and maintenance services when rendered at the residence of a person eligible to receive, and currently receiving, total disability benefits under the Social Security Act;
- Repair and maintenance services to vessels and fabrication labor to existing vessels;
- Vegetable seeds;
- Bicycle helmets;
- Firearm safety devices;
- Personal property used in a burial or cremation with a value of up to $2,500;
- Caskets used for burial or cremation;
- Compact fluorescent light bulbs; and
- Other nontaxable services including laundry, hair styling, real estate and jewelry appraisal.
Discounts: When a senior citizen discount or other discount is offered on a taxable item, the sales tax is applied to the discounted price.
Coupons: A coupon entitles a purchaser to an immediate reduction in the sales price of an item when the coupon is presented to a retailer. No additional action is required of the purchaser.
Sales and use taxes are calculated on the sales price after reducing the price by the value of any coupons presented. Any additional value assigned by the retailer, such as to double or triple the coupon, is also excluded from the sales price.
For example, if the original price of an item is $3 and you present a coupon for 50 cents off the item, the taxable price is $2.50. The total price of the item, including the sales tax, is $2.66.
In contrast, rebates do not reduce the taxable sales price of an item being purchased. See Policy Statement 2007(5), Sales Tax Treatment of Coupons, Scan Cards, Cash Equivalents, Promotional Items and Rebates.
Use Tax: When the seller of goods or provider of taxable services does not collect the sales tax, you must pay use tax. You must file a use tax return annually to report purchases of taxable goods or services on which you have not paid Connecticut sales tax.
If you purchased goods from mail order, catalog companies, or over the Internet and had the goods shipped to Connecticut, you must pay Connecticut use tax if you did not pay Connecticut sales tax. If you purchased goods at out-of-state locations for use in Connecticut and the tax paid is less than the Connecticut tax, you must pay the difference between the Connecticut tax and the tax paid in the other state. If all the items purchased and brought into Connecticut at one time total $25 or less, you do not have to pay Connecticut use tax. The $25 exemption does not apply to items shipped or mailed to you.
You must pay the use tax for purchases you made during the prior calendar year on or before April 15 on either your Connecticut income tax return or on Form OP-186, Connecticut Individual Use Tax Return. In general, the use tax rate for taxable goods and services is 6.35% except as described above for items subject to tax at a 7% rate or the 1% rate for computer and data processing services.
The Connecticut taxable estate is the sum of:
A. The total value of the decedent’s federal gross estate less allowable deductions other than the deduction for state death taxes paid under IRC §2058; and
B. The aggregate amount of Connecticut taxable gifts made by the decedent during his or her lifetime for all calendar years beginning on or after January 1, 2005.
For estates of decedents dying on or after January 1, 2005, but before January 1, 2010: Resident and nonresident estates are liable for the Connecticut estate tax if the amount of the Connecticut taxable estate is more than $2 million. If the Connecticut taxable estate exceeds $2 million, Connecticut estate tax is payable on the total amount including the first $2 million. A resident estate is an estate of a decedent who at the time of death was domiciled in Connecticut.
For estates of decedents dying on or after January 1, 2010, but before January 1, 2011: Resident and nonresident estates are liable for the Connecticut estate tax if the amount of the Connecticut taxable estate is more than $3.5 million. Connecticut estate tax is payable only on the amount of the Connecticut taxable estate that exceeds $3.5 million.
For estates of decedents dying on or after January 1, 2011: Resident and nonresident estates are liable for the Connecticut estate tax if the amount of the Connecticut taxable estate is more than $2 million. Connecticut estate tax is payable only on the amount of the Connecticut taxable estate that exceeds $2 million. If Connecticut estate and gift tax is due, the estate must file Form CT-706/709, Connecticut Estate and Gift Tax Return, with DRS. A copy of Form CT-706/709 must also be filed with the appropriate Connecticut probate court.
If Connecticut estate and gift tax is not due, the estate must file Form CT-706 NT, Connecticut Estate Tax Return (For Nontaxable Estates), with the Connecticut probate court for the district in which the decedent resided at the date of death or, if the decedent died as a nonresident of Connecticut, with the Connecticut probate court for the district in which the decedent’s real property or tangible personal property is located.
See Special Notice 2005(10), 2005 Legislation Repealing the Succession Tax and Amending the Connecticut Gift Tax and the Connecticut Estate Tax, Special Notice 2006(5), 2006 Legislation and Other Developments Affecting the Connecticut Estate and Gift Taxes, and Special Notice 2009(8), 2009 Legislative Changes Affecting the Connecticut Estate Tax and Connecticut Gift Tax, and Special Notice 2011(2), 2011 Legislative Changes Affecting the Connecticut Estate Tax and Connecticut Gift Tax.
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.
The Connecticut gift tax applies to Connecticut taxable gifts, which are also federal taxable gifts, made by a resident or nonresident of Connecticut on or after January 1, 2005:
For a donor who is a Connecticut resident, the taxable gifts include real property or tangible personal property located in Connecticut as well as intangible personal property wherever located; and
For a donor who is a nonresident of Connecticut, the taxable gifts include only real property or tangible personal property located in Connecticut.
A Connecticut gift tax return must be filed to report all Connecticut taxable gifts made in any calendar year on or after January 1, 2005, even though Connecticut gift tax may not be due.
For gifts made on or after January 1, 2005, but before January 1, 2010: Connecticut gift tax is payable only when the aggregate amount of all Connecticut taxable gifts made by the donor on or after January 1, 2005, exceeds $2 million. Once the $2 million threshold is exceeded, Connecticut gift tax is payable on the aggregate amount of Connecticut taxable gifts including the first $2 million.
For gifts made on or after January 1, 2010, but before January 1, 2011: Connecticut gift tax is payable only when the aggregate amount of all Connecticut taxable gifts made by the donor on or after January 1, 2005, exceeds $3.5 million. Once the $3.5 million threshold is exceeded, Connecticut gift tax is payable only on the amount of Connecticut taxable gifts that exceeds $3.5 million.
For gifts made on or after January 1, 2011: Connecticut gift tax is payable only when the aggregate amount of all Connecticut taxable gifts made by the donor on or after January 1, 2005, exceeds $2.0 million. Once the $2.0 million threshold is exceeded, Connecticut gift tax is payable only on the amount of Connecticut taxable gifts that exceeds $2.0 million. A credit is allowed for Connecticut gift taxes paid on Connecticut taxable gifts made on or after January 1, 2005. However, the credit cannot exceed the amount of the Connecticut gift tax.
See SN 2005(10), SN 2006(5), SN 2009(8), and SN 2011(2).
Local Real Estate and Personal Property Tax
State law governs the manner in which a city or town assessor determines property assessments and the procedures tax collectors use to collect property taxes. State law also authorizes property tax exemptions, credits, and abatements. For more information on property tax, write to Office of Policy and Management, Intergovernmental Policy Division, 450 Capitol Avenue, Mail Stop 54 GSU, Hartford CT 06106-1379, or visit the website of the Office of Policy and Management at www.ct.gov/OPM and select Intergovernmental from the Offices & Divisions pull down menu. Scroll down to Intergovernmental Affairs Unit and select Statutes Relating to Assessment and Taxation. You may also obtain specific information from a city or town assessor.
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 for the tax credit or rent rebate if he or she meets the requirements. Contact the assessor in your town or city for details and forms.
Veteran Exemption: A variable, annual property 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 an interest in realty where the consideration for the interest in property equals or exceeds $2,000. A deed for no consideration or less than $2,000 in consideration is not taxable for real estate conveyance tax but may be subject to gift tax or gift tax filing requirements.
The following deeds are exempt from the state real estate conveyance tax, but subject to the municipal real estate conveyance tax: a deed conveying the principal residence of any person receiving property tax benefits for the elderly; and deeds transferring realty in enterprise zones, enterprise corridor zones, and entertainment districts. For deeds that are exempt from both the state real estate conveyance tax and the municipal real estate conveyance tax, see Form OP-236I, Line Instructions for the OP-236, Real Estate Conveyance Tax Return.
The state tax rate on the consideration received for the real estate is as follows:
Type of Real Estate
Residential property (other than residential dwelling)
Nonresidential property (other than unimproved land)
Residential dwelling (portion not exceeding $800,000)
Residential dwelling (portion exceeding $800,000)
Property conveyed by a delinquent mortgagor*
* If mortgage payments are delinquent for six months or more and property is conveyed to a financial institution.
The grantor/seller conveying the property pays the state and municipal taxes. The grantor/seller must present separate checks, one payable to the town clerk and one payable to the Commissioner of Revenue Services, in payment of the municipal and state real estate conveyance taxes at the time the deed is presented for recording.
The succession tax remains in effect for estates of all decedents dying prior to January 1, 2005.
The cigarette tax rate will increase from $3.00 to $3.40 per pack on July 1, 2011.
Tobacco Products Tax
Effective July 1, 2011, the tax on all tobacco products (other than tobacco snuff products) will increase from 27.5 percent to 50 percent of the wholesale sales price of such products. In the case of cigars, the tax will be 50 percent of the wholesale sales price, not to exceed 50 cents ($0.50) per cigar.
Effective July 1, 2011, the tax on tobacco snuff products will increase from $0.55 per ounce to $1.00 per ounce of snuff.
Alcohol Beverages Tax
Effective July 1, 2011, the various alcoholic beverages tax rates increased by 20%.
Effect on Other Documents: This Informational Publication modifies and supersedes Informational Publication 2010(26), Connecticut Tax Tips for Senior Citizens.
Effect of This Document: An Informational Publication issued by the Department of Revenue Services (DRS) addresses frequently-asked questions about a current position, policy, or practice, usually in a less technical question and answer format.
For Further Information: Call DRS during business hours, Monday through Friday:
TTY, TDD, and Text Telephone users only may transmit inquiries anytime by calling 860-297-4911.
Forms and Publications: Visit the DRS website at www.ct.gov/DRS to download and print Connecticut tax forms and publications.
Paperless Filing/Payment Methods (fast, easy, free, and confidential):
Business and individual taxpayers can use the Taxpayer Service Center (TSC) at www.ct.gov/TSC to file a variety of tax returns, update account information, and make payments online.
File Electronically: You can choose first-time filer information and filing assistance or log directly into the TSC to file returns and pay taxes.
Pay Electronically: You can electronically pay taxes for tax returns that cannot be filed through the TSC. Log in and select the Make Payment Only option. Designate a payment date up to the due date of the tax and mail a paper return to complete the filing process.
DRS E-Alerts Service: Get connected to the latest news from DRS. Receive notification by email of changes to legislation, policies, and procedures. DRS E-Alerts provide information for employer’s withholding tax, News – Press Releases, and Top 100 Delinquency List. Visit the DRS website at www.ct.gov/DRS and select e-alerts from the left navigation bar.
Connecticut Tax Tips for Senior Citizens