Estate Tax

Estate Tax in Connecticut: Complete Guide 2026

Updated 2026-03-10

Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.

Estate Tax in Connecticut: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed estate planning attorney for your specific situation.

Connecticut is unique among states in two important ways: it has the highest estate tax exemption of any state that imposes an estate tax (matching or closely tracking the federal level at approximately ~$13.61 million), and it is the only state that imposes a separate gift tax during a taxpayer’s lifetime. With a top rate of ~12.00%, Connecticut’s estate tax affects only the wealthiest residents, but the gift tax adds a layer of complexity that does not exist in other states.

Connecticut Estate Tax Rates and Exemption (2026)

ParameterProjected 2026 Level
Estate tax exemption~$13.61 million (may change if TCJA sunsets)
Gift tax exemptionUnified with estate exemption
Top marginal rate~12.00%

Connecticut Estate/Gift Tax Rate Schedule

Taxable Amount (Above Exemption)Tax Rate
$0 — $3,600,000~7.20%
$3,600,001 — $8,100,000~9.60%
$8,100,001 — $10,100,000~10.40%
$10,100,001 — $13,100,000~11.20%
Over $13,100,000~12.00%

Estimated Tax by Estate Size

Estate ValueEstimated Connecticut Estate Tax
$13,610,000$0
$15,000,000~$100,100
$20,000,000~$497,700
$30,000,000~$1,697,700
$50,000,000~$4,097,700

Connecticut’s ~12.00% top rate is the lowest among states that impose estate taxes, and the high exemption means very few Connecticut estates are subject to the tax.

Connecticut’s Unique Gift Tax

Connecticut is the only state that imposes a state-level gift tax. This is significant because in all other estate tax states, lifetime gifts are an effective strategy to reduce the estate tax base. In Connecticut:

  • The gift tax uses the same unified exemption as the estate tax (~$13.61 million combined lifetime)
  • The gift tax rates mirror the estate tax rates (~7.20% to ~12.00%)
  • Gifts exceeding the annual exclusion (~$19,000 per recipient per year) count against the unified exemption

This means Connecticut residents cannot use lifetime gifting to avoid state transfer taxes as effectively as residents of other states can. However, gifts within the annual exclusion remain free of both federal and Connecticut gift tax.

TCJA Sunset Implications for Connecticut

Connecticut’s exemption has historically tracked the federal level. If the TCJA sunsets and the federal exemption drops to approximately ~$7.00 million:

ScenarioConnecticut ExemptionImpact
TCJA extended~$14.00 million+Minimal estate tax impact
TCJA sunsets, CT tracks federal~$7.00 millionMany more estates affected
TCJA sunsets, CT sets own levelUncertainDepends on legislation

Whether Connecticut will reduce its exemption to match a lower federal level or maintain the higher exemption independently is a critical planning question. The state legislature would need to act.

Comparison to Other Northeast States

StateExemptionTop RateGift Tax?
Connecticut~$13.61 million~12.00%Yes
New York~$6.94 million~16.00%No
Massachusetts~$2.00 million~16.00%No
Maine~$6.80 million~12.00%No
Vermont~$5.00 million~16.00%No
Rhode Island~$1.77 million~16.00%No
New HampshireNoneN/ANo

Connecticut has the highest exemption and lowest top rate among states with estate taxes. However, it is the only state with a gift tax, partially offsetting the advantage of the high exemption.

What Is Included in the Connecticut Taxable Estate

Connecticut follows the federal gross estate definition:

  • Real and personal property owned at death
  • Life insurance proceeds (if the decedent owned the policy)
  • Retirement accounts and financial assets
  • Business interests
  • Revocable trust assets
  • Connecticut taxable gifts made during lifetime (above the annual exclusion) are added to the taxable estate

Connecticut allows the unlimited marital deduction and charitable deduction.

Tips for Minimizing Connecticut Estate and Gift Tax

  1. Use the annual gift tax exclusion generously. Gifts within the ~$19,000 per recipient annual exclusion are not subject to Connecticut gift tax and do not reduce your unified exemption. A married couple with four children and their spouses could transfer approximately ~$152,000 per year tax-free.

  2. Maximize the marital deduction. Assets passing to a surviving spouse are exempt from both estate and gift tax. A credit shelter trust preserves both spouses’ unified exemptions.

  3. Plan around the gift tax. Since Connecticut is the only state with a gift tax, be strategic. Gifts of appreciating assets may still be beneficial because future appreciation escapes the estate.

  4. Fund charitable gifts. Charitable bequests and charitable remainder trusts reduce the taxable estate and are not subject to estate or gift tax.

  5. Consider an irrevocable life insurance trust. Removing life insurance from the estate can reduce tax for larger estates. The three-year look-back applies in Connecticut.

  6. Monitor TCJA developments. Whether Connecticut maintains its high exemption after a potential federal sunset will dramatically affect planning. Stay in close contact with your estate planning attorney.

Key Takeaways

  • Connecticut’s estate tax exemption of approximately ~$13.61 million is the highest among states with estate taxes
  • The top rate of ~12.00% is the lowest top rate among estate tax states
  • Connecticut is the only state with a gift tax, which limits the effectiveness of lifetime gifting as an estate tax reduction strategy
  • The estate and gift tax exemptions are unified — lifetime taxable gifts reduce the amount available at death
  • The impact of a potential TCJA sunset on Connecticut’s exemption level remains an important planning uncertainty

Next Steps