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Below is a snapshot of key features of Connecticut's tax system. (Scroll Down)
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State & Local Revenue (FY08)
- General Revenue, Own-Source (GROS): $27.7 billion
- General Revenue as a Share of Income: 14.2%
- Tax Revenue: $23.1 billion
- Tax Revenue as Share of income: 11.8%
- Personal Income Tax (Share of Tax Revenue): 32.5% (6 out of 51)
- Corporate Income Tax (Share of Tax Revenue): 2.6% (41 out of 51)
- Sales & Excise Tax (Share of Tax Revenue): 25.2% (42 out of 51)
- Property Tax (Share of Tax Revenue): 36% (11 out of 51)
- Other Taxes (Share of Tax Revenue): 2.9% (31 out of 51)
Personal Income Tax Features (2011)
- Range of Tax Rates: 3.0% - 6.7%
- Standard Deduction: None
- Personal Exemption: $13,000 ($24,000 for Married Couples) Max
- Dependent Exemption: None
- Earned Income Tax Credit (EITC): 25% Refundable
- Standard deduction phases out for high income levels
- Personal exemption is available as a credit
- Benefit of bottom 3% rate phases out for higher income levels and additional benefit recapture in place.
Corporate Income Tax Features (2011)
- Range of Tax Rates: 7.50%
- Income Level at Which Top Rate Applies: All
- Combined Reporting: No
- Apportionment Factor (Payroll): 0%
- Apportionment Factor (Property): 50%
- Apportionment Factor (Sales): 50%
- Apportionment Note: Some corporations can elect to use single weighted sales formula
Sales Tax Features (2011)
- State Sales Tax Rate: 6.35%
- Average Local Sales Tax Rate: N/A
- Average Combined State & Local Sales Tax Rate: 6.35%
- State Sales Tax Treatment of Groceries: Exempt
- Local Sales Tax Treatment of Groceries: N/A
- Number of Services Taxed: 79 out of 168 surveyed. In 2011, added an additional 12 services to the base.
- Streamlined Sales Tax Membership: No
- "Amazon law" in effect
- Sales tax holiday offered in 2011
Property Tax Features (2011)
- Does not provide a homestead exemption.
- Provides means-tested income tax credit to offset property taxes.
- Levies a car tax.
Other Tax & Revenue Features (2011)
- Gasoline Tax Rate (per gallon): $0.519
- Diesel Tax Rate (per gallon): $0.396
- Cigarette Tax Rate (per pack): $3.40
- Estate or Inheritance Tax: Yes
- Net Lottery Sales Per Capita: $261
Tax Policy Oversight
- Tax Expenditure Report: Yes
- Tax Incidence Analysis Capability: None
Last Updated August 25, 2011
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