This article was written with the assistance of A.I. technology, and has been edited and fact-checked by Melly Alazraki.
Connecticut residents pay the most in state and local taxes in the United States, according to the Tax Foundation, with an average annual tax burden of $12,151 per capita in calendar year 2022.
The state’s individual income tax collections amounted to $2,845 per capita in fiscal year 2021, the second highest amount in the country, while the average property tax collections amounted to $3,295 per capita in fiscal year 2020, also the second highest of the 50 states. Property tax is also the largest source of state and local tax revenue in the state, accounting for 39.0% of all tax revenue.
Property taxes are typically paid as a percentage of the value of assets like land, houses, and even cars or boats in some circumstances. In many of the states where people pay the most in taxes, effective property tax rates are higher than the national average. Connecticut is no different, with an effective property tax rate of 1.8% in 2020 higher than the national rate that year of 1.1%. .
The states with the highest state and local tax burdens tend to have higher-earning populations. The Tax Foundation estimates that the average individual income in Connecticut was $83,294 per capita in calendar year 2021, the second highest after Massachusetts. As a percentage of income, Connecticut is also second, with state and local taxes amounting to 15.4% of state income. New York state has the largest burden as a percentage of income, at 15.9%.
While some people may argue that residents of high-tax states should pay less in taxes, others say that the high taxes help states and localities spend more and provide better services such as infrastructure and education.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.