Connecticut Capital Gains Tax Calculator
Connecticut taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the Connecticut income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the Connecticut state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced Connecticut Department of Revenue Services brackets for tax year 2024, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the Connecticut state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the Connecticut Department of Revenue Services so you can confirm any special rule that applies to you.
Connecticut taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $1,049.95 in Connecticut state tax, an effective rate on the gain of 5.25%.
How Connecticut taxes capital gains
Connecticut taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the Connecticut bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
Connecticut capital gains tax: frequently asked questions
How are capital gains taxed in Connecticut?
Connecticut taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the Connecticut income tax brackets published by the Connecticut Department of Revenue Services. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the Connecticut Department of Revenue Services.
How much state tax will I pay on a $20,000.00 capital gain in Connecticut?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $1,049.95 of Connecticut state income tax for a single filer, an effective rate on the gain of 5.25%. Your figure depends on your total income and filing status; enter them above.
Does Connecticut have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the Connecticut Department of Revenue Services; this calculator uses the ordinary income method and links the source.
What are Connecticut's 2024 income tax rates and brackets?
For 2024, Connecticut taxes single filers at 2% on the first $10,000, 4.5% on $10,001-$50,000, 5.5% on $50,001-$100,000, 6% on $100,001-$200,000, 6.5% on $200,001-$250,000, 6.9% on $250,001-$500,000, and 6.99% on income above $500,000. Married filing jointly thresholds are double the single amounts. Authority: Connecticut Department of Revenue Services, Connecticut General Statutes §12-700.
Does Connecticut have a standard deduction?
Connecticut does not have a standard deduction in the traditional sense. Instead, Connecticut allows a personal exemption of $15,000 for single filers and $24,000 for married filing jointly. However, this exemption phases out at higher incomes and is completely eliminated above approximately $100,000 for single filers and $200,000 for married filing jointly filers. Connecticut General Statutes §12-702.
What is Connecticut's top income tax rate, and how does it compare to neighboring states?
Connecticut's top marginal rate is 6.99%, which applies to single-filer income above $500,000 and married-filing-jointly income above $1,000,000. This is higher than the top rates in Massachusetts (5%), Rhode Island (5.99%), and New Hampshire (which taxes only interest and dividends at a flat 3% for 2024, phasing to zero by 2027). New York's top rate can exceed 10% when city tax is included. Connecticut's rate is among the highest in New England.
How does the Connecticut personal exemption phase-out work?
Connecticut's personal exemption begins to phase out when Connecticut adjusted gross income exceeds $28,000 for single filers ($48,000 for married filing jointly). The exemption is reduced by $1,000 for each $1,000 of income above the phase-out threshold. The exemption is completely eliminated at approximately $100,000 for single filers and $200,000 for married filing jointly. This means many middle- and higher-income taxpayers receive no exemption benefit. See Connecticut General Statutes §12-702.
Official sources
- Connecticut income tax rates applied to capital gains (tax year 2024): Connecticut Department of Revenue Services, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the Connecticut Department of Revenue Services.