Connecticut Estate Tax: Everything You Need to Know

There is an estate tax in Connecticut. As of 2024, there is a flat estate tax rate of 12%. If you’re a resident of Connecticut and thinking about planning your estate, this guide will explain what you need to know about the estate tax to make sure your affairs are in order when you pass away. If the estate tax may apply to you, consider finding a financial advisor to guide you through the estate planning process. SmartAsset can help you find an advisor with our free financial advisor matching tool.

Connecticut Estate Tax Exemption

Connecticut is one of 12 states, plus the District of Columbia, that imposes an estate tax. While the vast majority of families aren’t affected by the federal estate tax because of how high the exemption is, Connecticut’s estate tax affects a greater proportion of estates.

For estates of people who die in 2024, the tax won’t apply if the estate is less than $13.61 million. This is up from the exemption for 2023, which was $12.92 million. The estate tax is due within six months of the estate owner’s death, though a six-month extension may be requested.

The estate tax rate used to be progressive and payable on the value of the entire taxable estate. However starting in 2023 and beyond, there is just a flat rate of 12%.

Connecticut Estate Tax Rate

Connecticut’s estate tax used to be progressive, with a series of increasing rates applying as the value of the estate gets higher. Again, this is no longer the case for 2023, 2024 and into the future. However, you can find your taxable estate bracket in the chart below for years previous to 2023.

If, for instance, you have an estate worth $10 million and you died in 2022, your taxable estate after the exemption is $900,000. All of that falls in the first bracket, so your tax rate is 11.6%. That means your total estate tax burden is $104,400.

Connecticut Estate Tax Rates

Taxable Estate*	Marginal Rate
Up to $9.1 million	0%
$9.1 million to $10.1 million	11.6%
$10.1 million and above	12.6%

*The taxable estate is the total above the 2022 exemption of $9.1 million

What Is the Estate Tax?

The estate tax is a tax applied to an estate after a person dies but before the person’s money gets passed on to heirs. It is sometimes called the “death tax.” Only estates that reach a certain threshold are subject to the estate tax.

The estate tax is not the same as the inheritance tax, which is levied after the estate is dispersed to a person’s beneficiaries. While the estate tax is taken out of the estate, the beneficiaries are responsible for paying the inheritance tax.

Connecticut Inheritance Tax

There is no inheritance tax in Connecticut. However, another state’s inheritance tax may apply to you if your grantor lived in a state that has an inheritance tax. In Kentucky, for instance, the inheritance tax applies to all in-state property, even if the inheritor lives in another state. If someone who lives out-of-state leaves you something, make sure to check the local laws in your grantor’s state to see if you owe inheritance tax.

Connecticut Gift Tax

Connecticut is the only state in the union that levies its own gift tax. The lifetime exemption is equal to the estate tax exemption. There is also a yearly exemption of $18,000 per person per year.

The federal gift tax also has an exemption, which is $18,000 in 2024, up from $17,000 in 2023. The federal lifetime exemption is $13.61 million as of 2024.

Connecticut Estate Tax for Married Couples

Connecticut does not have portability for spouses. When the second spouse of a married couple dies, only one exemption applies.

Federal Estate Tax

There is a federal estate tax that may apply on top of the Connecticut estate tax, but it has a higher exemption level of $13.61 million in 2024. This exemption is portable between spouses. This means a couple can protect up to $27.22 million with proper legal steps.

The top tax rate for the federal estate tax is 40%. Using the same method described above, you can find your federal estate tax burden within the table below.

Federal Estate Tax Rates

Taxable Estate*	Base Taxes Paid	Marginal Rate	Rate Threshold**
$1 – $10,000	$0	18%	$1
$10,000 – $20,000	$1,800	20%	$10,000
$20,000 – $40,000	$3,800	22%	$20,000
$40,000 – $60,000	$8,200	24%	$40,000
$60,000 – $80,000	$13,000	26%	$60,000
$80,000 – $100,000	$18,200	28%	$80,000
$100,000 – $150,000	$23,800	30%	$100,000
$150,000 – $250,000	$38,800	32%	$150,000
$250,000 – $500,000	$70,800	34%	$250,000
$500,000 – $750,000	$155,800	37%	$500,000
$750,000 – $1 million	$248,300	39%	$750,000
Over $1 million	$345,800	40%	$1 million

*The taxable estate is the total above the 2024 exemption of $13.61 million.
**The rate threshold is the point at which the marginal estate tax rate kicks in.

Overall Connecticut Tax Picture

Connecticut is not tax-friendly for retirees. In fact, it ranks among the least tax-friendly states in the country for those in their golden years. The state fully taxes withdrawals from retirement accounts, like IRA or 401(k) plans, as well as payments from private or public pension plans. It also taxes Social Security. However, seniors who have an adjusted gross income below $75,000 ($100,000 for joint filers) are exempt from Social Security taxes. Connecticut’s income tax rate ranges from 3% to 6.99%.

The average property tax rate in Connecticut is 2.15%, among the highest in the country.

Estate Planning Tips

Estate planning can be a difficult process, but a financial advisor may be able to help. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
A common misconception about estate planning is that it’s only for older people or rich people. This couldn’t be further from the truth. A solid estate plan can help protect you financially if the unexpected were to occur.