Connecticut State Estate Tax

 

Only a few states collect their own estate or inheritance tax. Find out if Connecticut collects either (or both) taxes on the estate after someone has died.

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Connecticut residents are subject to an estate tax for estates of more than $13.610,000 million as of 2024. This tax falls on the estate of the person who died; the beneficiaries or heirs inherit what's left.

(Note: as of 2024, Connecticut follows the Federal Exclusion amount.)

There is no inheritance tax in Connecticut; this would be the tax that falls on the heirs and beneficiaries, not on the estate of the person who died.

Connecticut's estate tax rate is lower than the federal rate: estates larger than $13.610,000 million pay a Connecticut estate tax rate of 12%, compared to the current federal rate of 40%.

This state-specific estate tax is in addition to the federal estate tax, which also falls on the estate of the person who died, not on the people who inherit that property. There is a federal exemption of  $13.610,000, and only people who die with an estate larger than that exemption will have to pay estate tax. It is estimated that only the wealthiest .14% of Americans will be subject to the estate tax, or only two out of every 1,000 people who die.

If someone dies in Connecticut with less than the exemption amount (currently $13.610,000), their estate doesn't owe any federal or Connecticut estate tax, either.

The heirs and beneficiaries inherit the property free of tax. They don't pay income tax on it, either, because inherited property is not ordinary income. The only exception is inherited retirement accounts, which are subject to income tax as the assets are withdrawn. 

Both the Connecticut estate tax return and any tax owed are due six months after the death. Downloadable estate tax returns and instructions are available from the Connecticut Department of Revenue Services.

States nearby Connecticut, like New York, Massachusetts, and Rhode Island have lower exclusion limits for estate taxes.





Jurisdictional relevance: ST

There are versions of this article for each State.