Income tax rates range from 3% to 6.5%, with a personal exemption ranging from $12,000 to $24,000, depending on filing status. There is no deduction or credit amount, and there is no benefit for dependents. Social Security is exempt for taxpayers with adjusted gross income under $50,000, or $60,000 if married. Half of military pensions are exempt, but all other out-of-state pensions are fully taxable. Connecticut has an estate tax starting at $2 million in assets at 7.2% and ranging up to 12% of total assets, making this a pretty expensive state to die in.
The Corporate tax rate is a 7.5% flat tax. Pass-through entities such as partnerships and S-corps are required to withhold tax on payments to partners, or shareholders, if their share of Connecticut source income is $1,000 or more. Sales tax is 6.35%. There is a $250 annual business entity tax that must be paid by all S-corps, LLCs and limited partnerships. Connecticut tax information can be found at: http://www.ct.gov/drs/site/default.asp. Business registration is at: http://www.ct.gov/sots/site/default.asp