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Capital Gains Tax in Connecticut
By Priya Raman
Connecticut's near-7% state rate pushes the combined bill past 30%.
Connecticut's near-7% state rate pushes the combined bill past 30%.
Connecticut's top capital gains rate runs to 6.99%, one of the higher state rates in the Northeast. Combined with the federal 20% and the 3.8% NIIT, a seller can face up to 30.8% of the gain.
A 1031 exchange defers the full 30.8% by moving the proceeds into a like-kind replacement property instead of cashing out. Plug your basis and target property into the 1031 exchange calculator, then use the timeline calculator to track the 45-day identification window.
20% federal, 3.8% NIIT, and 6.99% Connecticut state tax add up to that 30.8% figure, applied to the taxable gain after basis. Depreciation recapture is calculated on top of that in the capital gains tax calculator.
The rate above is a ceiling, not a guarantee; your actual Connecticut liability depends on income, basis, and how much of the gain is recapture. Run your own Connecticut figures through the 1031 exchange calculator.