Connecticut
Our ranking: Least tax-friendly
State income tax: 3% (on up to $20,000 of taxable income for married joint filers and up to $10,000 for those filing individually) — 6.99% (on the amount over $1 million for married joint filers and over $500,000 for those filing individually)
Average state and local sales taxes: 7.52%
Gas taxes and fees: 44 cents per gallon
About the only bright spot in Connecticut’s tax picture is that localities can’t add to The Constitution State’s 6.35% sales tax. Real estate taxes are the fourth-highest in the country and the state has not only a gift tax, but a luxury tax. Plus, annual car taxes are steep.
The $10,000 cap on the federal tax deduction for state and local taxes will sting residents in high-income areas, such as Fairfield County, who pay more than $10,000 in property taxes — their federal tax deductions for state and local taxes will be curtailed.
