Connecticut Taxes for New Residents: Income, Sales, Estate and Car Taxes

Connecticut’s tax system has three layers you will notice: a state income tax, a state sales tax and town property taxes on homes and cars. This guide covers each for someone moving in, with the official sources. It is general information, not tax advice.

Income tax

Connecticut taxes residents on all their income and nonresidents on income from Connecticut sources. For tax year 2025 the rates, from the Department of Revenue Services’ tax calculation schedule, are¹:

Rate	Single filers, taxable income	Married filing jointly
2%	Up to $10,000	Up to $20,000
4.5%	$10,000 to $50,000	$20,000 to $100,000
5.5%	$50,000 to $100,000	$100,000 to $200,000
6%	$100,000 to $200,000	$200,000 to $400,000
6.5%	$200,000 to $250,000	$400,000 to $500,000
6.9%	$250,000 to $500,000	$500,000 to $1,000,000
6.99%	Above $500,000	Above $1,000,000

Connecticut also phases out the benefit of the lower brackets at higher incomes, so the effective rate rises faster than the table suggests. The Office of Legislative Research has a plain-English guide to how it works².

The year you move

You will usually file as a part-year resident for the year you arrive, reporting income received while you lived in Connecticut plus any Connecticut-source income from before the move. Your former state may also want a part-year or nonresident return. Keep records of your move date, such as a lease or closing date, the date you changed your licence and your voter registration³.

Working in New York

If you will commute to New York, you will file a New York nonresident return and claim a credit on your Connecticut return for tax paid to New York on the same income. Remote work days add a complication. Read live in Connecticut, work in New York.

Credits worth knowing

Residents who pay property tax on a primary home or car may qualify for a property tax credit against their income tax, up to $300 for 2025, subject to income limits⁴.

Sales and use tax

The general sales tax rate is 6.35 percent. Some items above set price thresholds, such as certain motor vehicles, jewelry and clothing or footwear, are taxed at a higher luxury rate³. If you buy something out of state for use in Connecticut and pay no sales tax, use tax may be due.

Estate and gift tax

Connecticut has both an estate tax and a gift tax. For 2026 the exemption is $15 million⁵. If you are moving with significant assets, review your estate plan with a Connecticut attorney.

Retirement income

Connecticut exempts Social Security benefits for single filers with federal adjusted gross income below $75,000 and joint filers below $100,000, with partial taxation above that⁶. Pension and IRA income has its own exemption, phasing out at higher incomes⁷. See retiring in Connecticut.

Property and car taxes

These are set by each town, not the state. Your bill is 70 percent of market value times the town’s mill rate, divided by 1,000 and cars are taxed at a motor vehicle mill rate capped at 32.46 for FY2027⁸. See Connecticut property taxes explained and the new to Connecticut checklist.

Income tax at sample incomes

The rate table alone does not show what you will pay. Effective rates depend on filing status, deductions and the phase-out of the lower brackets. Treat any estimate below as a rough illustration and check the DRS schedule or a tax professional for your situation¹.

For a single filer with Connecticut taxable income of $80,000 in 2025, the bracket math in the table above gives 2 percent of the first $10,000 ($200), 4.5 percent of the next $40,000 ($1,800) and 5.5 percent of the last $30,000 ($1,650), for $3,650. That is before the phase-outs and any credits, which can change the result, so work out your own final figure with the DRS worksheet.

For a joint filer with taxable income of $200,000, the same math gives 2 percent of $20,000 ($400), 4.5 percent of $80,000 ($3,600) and 5.5 percent of $100,000 ($5,500), for $9,500 before phase-outs and credits. At this income the phase-out of the lower brackets may apply, so use the official schedule for the final number.

The Office of Legislative Research’s income tax guide explains the phase-outs in plain English². Many people who move from New York find Connecticut’s income tax simpler because there is no city income tax on top of the state tax.

Comparing with New York

New York State has its own income tax brackets and New York City adds a city income tax for residents of the five boroughs⁹. Someone who lives in Connecticut and works in New York typically pays New York tax on wages earned in New York and Connecticut tax on all income, then claims a credit to avoid being taxed twice on the same wages. The details are covered in live in Connecticut, work in New York.

If you also own a home in New York, residency rules can still treat you as a New York resident under some conditions, even after you move. New York looks at domicile and the number of days you spend in the state⁹. If your situation is complicated, talk to a tax professional before the move.

Sales tax on big purchases

The general rate of 6.35 percent applies to most goods. Luxury rates apply to certain items above price thresholds, including some motor vehicles, jewelry and clothing or footwear³. When you buy a car, the sales tax can be a significant part of the cost, so ask the dealer for the tax before you decide.

Furniture, appliances and building materials for renovations are usually taxed at the general rate. Keep receipts for renovations that improve the home; they can raise your cost basis when you eventually sell¹⁰.

Use tax on out-of-state purchases

If you buy something outside Connecticut for use in the state and pay no sales tax, Connecticut may expect use tax. Online purchases shipped into Connecticut may already collect Connecticut tax. Check your receipts and the DRS guidance if you make large purchases from out of state³.

Property tax as a new resident

Your first property tax bill comes from the town, not the state. The amount depends on the home’s assessment and the town’s mill rate⁸. Ask the seller or your attorney what the current bill is and check the town’s assessor website for the assessment.

Towns bill on different schedules. Some send one bill a year; others send two. Your attorney will explain the schedule for your town at closing.

If you are 65 or older or have a disability, ask about the Circuit Breaker program, which can reduce the bill for qualifying homeowners¹¹. Details are in the retiring in Connecticut guide.

Car tax as a new resident

When you register your car in Connecticut, the town will tax it. The rate is capped at 32.46 mills for FY2027⁸. The first bill may arrive months after you register, so set money aside.

Cars are assessed at 70 percent of value, like homes. Values decline as cars age, so the tax usually falls over time. If you bring two cars, both will be taxed.

Filing for the first time

In the year you move, you will usually file a Connecticut part-year resident return. The Connecticut return is filed with the Department of Revenue Services and your former state will also want a return for the part of the year you lived there.

Keep records of the move date: a lease, a closing statement, utility start dates or a driver’s licence change. They help if either state questions when you became a resident.

Tax checklist for your first year

• File a Connecticut part-year return for the year of the move.
• File a part-year or nonresident return with your former state.
• Claim any New York credit if you paid New York tax on wages earned there.
• Claim the Connecticut property tax credit if you qualify⁴.
• Watch for your first car tax bill after registration.
• Update your address with the IRS, Social Security and your banks.

Keeping New York ties

If you keep an apartment, a second home or regular workdays in New York, New York may still treat you as a resident for tax purposes under its domicile and day-count rules⁹. Ending those ties or documenting why Connecticut is your true home, matters.

Document your Connecticut address, your driver’s licence, your voter registration and where your family lives. Keep a calendar of days spent in New York. See live in Connecticut, work in New York and Connecticut vs Westchester. Town guides for Stamford and Norwalk cover the main commuter options.

Where to go next

For the property tax side, read Connecticut property taxes and mill rate math. For the commute and work side, see commuting to NYC and Stamford vs Norwalk. Town guides for Greenwich, Westport and West Hartford show how rates differ.

For a full monthly budget, use the costs and money hub and the cost of moving calculator. When you are ready, get matched with a licensed Connecticut agent.

When to get help

If you have income in more than one state, equity compensation, a business or significant investments, talk to a CPA who handles Connecticut returns before your first year here. It is easier to set up withholding correctly than to fix it at tax time.