Taxation in Connecticut

Updated on Monday 09th July 2018

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If you have decided for doing business in Connecticut and you need to know the tax system in this American state, we invite you to talk to one of our company formation representatives in USA. Foreign entrepreneurs in Connecticut need to consider the corporate income tax which is at a flat rate of 9% and the federal corporate income tax which applies depending on the registered incomes in a year. Essential details about the taxation structure in Connecticut can be found below, with the mention that our advisors can offer complete information on request.
 

The corporate income tax in Connecticut

 
The business tax in Connecticut or the corporate income tax is set at 9% and it is the 6th highest tax rate in USA. Any business or company with establishments in Connecticut need to observe this important tax and file the forms with the Department of Revenue in Connecticut through its local offices.
 

What are the federal corporate income tax rates in Connecticut?

 
Besides the business tax mentioned above, companies need to pay the federal corporate income tax which can be seen in the table below and the established rates and fees for each income bracket:
 
Income Tax Rate
Up to $50,000
15%
Between $50,000 and $75,000 $7,500 + 25% of the amount over 50,000
Between $75,000 and $100,000 $13,750 + 34% of the amount over 75,000
Between $100,000 and $335,000 $22,250 + 39% of the amount over 100,000
Between $335,000 and $10,000,000 $113,900 + 34% of the amount over 335,000
Between $10,000,000 and $15,000,000 $3,400,000 + 35% of the amount over 10,000,000
Between $15,000,000 and $18,333,333 $5,150,000 + 38% of the amount over $15,000,000
$18,333,333 and more $6,416,667 + 35% of the amount over $18,333,33


The sales tax in Connecticut

 
The sales tax in Connecticut is set at 6.35% and it is available in all cities, without any other municipal tax imposed. This is imposed on goods and services for sale purposes, with the difference that varied food products are exempt from such taxation. We are at your disposal with information in this matter and we can also help you set up a company in USA, especially in this state.
 

 

What is the capital gain tax in Connecticut?

 
In Connecticut, the capital gains are levied with a tax rate of 6.99%. For complete information about all the taxes in this state, please feel free to address to our team of company formation consultants in USA. Also, if you would like to start a business in USA, our advisors can offer assistance in any state you would like to set up your operations.
 

Tax exemptions for non-profit entities in Connecticut


Non-profit entities like charities, scientific institutions, or related organizations are exempt from taxation in Connecticut. The Department of Revenue in Connecticut provides several documents for such entities, but for complete support in this sense, you can talk to one of our advisors.
 

What companies need to pay taxes in Connecticut?


Entities like partnerships, C-Corporations, S-Corporations and sole proprietorships need to pay the corporate tax imposed in this state.
 

Other tax facts in Connecticut

 
The rate of 1.97% is the average effective property tax rate imposed in Connecticut counties. The cigarette and alcohol tax need to be considered in Connecticut if you have a business dealing with these types of products.

We invite you to contact our team of company incorporation consultants in USA for extra details about the taxation system in Connecticut. Also, you can ask for information about how to open a company in USA in any chosen state for business.

 

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