Connecticut

Connecticut's principal taxes are a general state sales and use tax of 6%, a two-bracket personal income tax of 3.5% and 5% (as of April 2003), and flat-rate corporate income tax of 7.5%. There are also state excise taxes on gasoline (25 cents per gallon ), other motor fuels, cigarettes ($1.11 a pack, with Connecticut being one of seven states to more than double this tax in 2002), other tobacco products, alcoholic beverages, amusements, insurance premiums, pari-mutuels, public utilities, and other selected goods. After having been scheduled in 1995 to be phased out by 2001, Connecticut's inheritance tax is now scheduled to be phased out by 2005. There are also various state license fees and stamp taxes. All property taxes are local, whereas there are no local sales taxes in Connecticut. In 2001/02, state taxes totaled $9.03 billion, 40.8% from the individual income taxes, 33.7% from the general sales tax, 16.3% from selective sales taxes, 4.4% from license fees, 1.76% from inheritance and gift taxes, 1.65% from corporate taxes, and 1.3% from stamp taxes.

In 2003, combined state and local taxes in Connecticut amounted to 10.9% of income, the fifth highest in the country. In 1990, before the introduction of the state income tax, combined state and local taxes were 9.4% of income, placing Connecticut 33rd among US states. The highest combined totals were in 1997 and 1998, both 11.1% of income, when Connecticut ranked 7th among US states in terms of the state and local tax burden.

The following table from the US Census Bureau provides a summary of taxes collected by the state in 2002.