Connecticut

Moving from New Hampshire to Connecticut would RAISE your total state and local tax burden from 9.6% of income to 12.8% of income — an increase of +3.2 pts. On a $100K household budget, that is roughly $3200 more per year in combined state and local taxes.

Connecticut has a state income tax with a top rate of 6.99%, while New Hampshire has NO state income tax. Moving would expose your wage income to state taxation for the first time.

Connecticut state sales tax is 6.35%. With average local add-ons, the combined rate is 6.35%. This applies to most retail purchases but rules on groceries, prescriptions, and services vary.

Connecticut median effective property tax rate is 2.00% of home value. On a $400,000 home, that is roughly $8,000/year. Property tax typically funds schools, municipalities, and county services — rates vary sharply within a state by school district.

Connecticut imposes annual vehicle property or ad valorem tax. Expect a recurring annual assessment based on the vehicle's value or registration class, in addition to one-time sales tax at purchase. Budget for this ongoing cost.

Connecticut imposes a state estate tax with a threshold of $13.99M (2025; matches federal). Estates above this threshold pay state-level tax in addition to federal. No state inheritance tax applies.

In Connecticut: Social Security is partially taxed. Pensions and 401(k)/IRA withdrawals are partially taxed.

Connecticut capital gains treatment: Taxed as regular income up to 6.99%; +1% surtax on capital gains for high earners. Compare to federal long-term capital gains rates (0%, 15%, or 20%) — some states offer preferential treatment for long-term holdings, while others tax capital gains as ordinary income.

Connecticut gas tax is 25.0¢/gal — 1.2¢/gal higher than New Hampshire's 23.8¢/gal. For a 15,000 mile/year driver getting 25 mpg, each 1¢/gal of gas tax = about $6/year.

Connecticut residency rules: 183-day rule + permanent place of abode = statutory resident. Strict domicile audits for high-net-worth leavers. To establish residency for tax purposes, typical steps include: update driver's license and vehicle registration, register to vote, file a homestead declaration, close home-state bank accounts where possible, and spend clearly more than 183 days in your new state. If your former state is aggressive (e.g., CA, NY, NJ, OR), keep documentation of every day spent in each state.

Connecticut recent tax law changes: Lowest two income brackets cut in 2024 (3%->2% and 5%->4.5%). Estate tax threshold matched to federal in 2023.

For the most current tax information in Connecticut, visit the official source at https://portal.ct.gov/drs. Tax laws change annually; verify rates and rules before making a permanent move. Consult a CPA for advice specific to your situation.