Connecticut’s combined state and local tax rates are the third highest in the nation according to a new study from WalletHub. Together, Connecticut’s state and local tax rates account for 14.54 percent of the median annual household income.
Only New York, where the combined rate is 14.74 percent, and Illinois, where the combined rate is 16.58 percent, are higher.
In total, the two tax rates combined have an $11,488 cost for the median U.S. household income and a $13,231 cost for the median household income in the state.
Connecticut’s state and local tax rates are 33.2 percent higher than the national average rate, which is 10.92 percent.
Connecticut also has the third highest effective real estate tax rate, at 7.36 percent. Annually, real estate taxes cost Connecticut residents $5,813. The state also ranks low for the cost of vehicle property taxes. Connecticut is ranked 44 out 0f 51, with vehicle taxes costing an average of $605 per year.
The state’s sale and excise taxes are slightly above average. Connecticut is ranked 28 out of 51, with an average cost of $3,694 annually. The study also noted Connecticut is one of a few states that do not have a food tax.
According to the study, Connecticut also has the fourth highest state tax rate on cigarettes.
With the exception of New Hampshire and Maine, all other New England states’ combined state and local tax rates were below the national average. New Hampshire ranked highest in the region, ranked 12 out of 51 for lowest combined rates. Its combined state and local tax rates were 13.42 percent below the national average.
In response to the study’s finding, Sens. Ryan Fazio, R-Greenwich, and Stephen Harding, R-Brookfield, blamed the high rates on one-party rule.
“Under one-party rule, heavy tax burdens are crushing the budgets of CT working class families and small businesses. Senate Republicans have introduced a plan for income and property tax relief to lower burdens for middle class families by $1,000 annually. At the same time, Republicans continue to press for significant relief by getting the hidden ‘public benefits’ tax removed from our unaffordable electricity bills.” Fazio and Harding said in a statement.
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I recently took a Viking cruise-only 380 people on board. I met FOUR retired couples who had moved from Connecticut due to the high taxes (especially the income tax on IRA withdrawals). All four were amazed I stayed in CT in my retirement. Older folks with any assets are leaving in droves, despite what the politicians try and say. Many of my friends are gone, too. More taxes just drive assets away. Unfortunately, I am paying the “grandparents tax”, I only stay because of them but I am reconsidering daily.