Connecticut variant. This is a Connecticut-specific version of the Stock Sale Capital Gains Tax Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Stock Sale Capital Gains Tax Estimator.
Most states tax capital gains as ordinary income. In Connecticut, that means a top rate of 6.99% on gains.
Capital gains tax in Connecticut
Federally, long-term gains are taxed at 0%, 15%, or 20% depending on income, plus a possible 3.8% net investment income tax. Connecticut then taxes the same gains as ordinary income at up to 6.99%.
Short-term gains (assets held under a year) are taxed as ordinary income at both levels - usually the most expensive outcome.
About taxes and housing in Connecticut
Connecticut uses a graduated income tax topping out near 7%, and it does not allow a standard deduction.
Connecticut has some of the highest property taxes in the nation, levied entirely at the municipal level, and it also imposes a motor vehicle property tax.
Connecticut's economy is built on finance, insurance, and defense manufacturing, and it consistently ranks among the highest in per-capita income.
Worked example: $50,000 long-term gain
A $50,000 long-term gain: federal 15% = $7,500, plus Connecticut state tax up to 6.99% = $3,495, for a combined bill near $10,995.
Quick reference
- State income tax: 2-6.99% across 7 brackets
- State sales tax: 6.35% (plus 0.00% avg local)
- Median home value: $395,000
- Median household income: $90,213
- Effective property tax rate: 1.79%
- Avg auto insurance: $1,769/yr
Frequently Asked Questions
Does Connecticut tax capital gains?
Yes - Connecticut taxes capital gains as ordinary income at up to 6.99%.
What's the difference between short and long-term gains?
Assets held over a year get preferential long-term federal rates (0/15/20%); shorter holds are taxed as ordinary income.