How Connecticut’s Taxes Stack Up: Who Pays the Most?

Connecticut’s tax scene is a puzzle. The state relies heavily on income taxes for its $27 billion budget, yet many say the richest people pay too little. A recent study from 2011 to 2020 looks at how different income groups actually share the burden. First, income taxes bring in about a third of all state revenue. Property taxes are the biggest single source, covering 38 % of total tax money. Sales taxes add another 15 %. While sales taxes are flat for everyone, they hit the poor harder because low‑income families spend a larger slice of their earnings on taxable goods. Income taxes are progressive: the rate climbs as you earn more. Connecticut’s brackets range from 3 % on the first $10, 000 to almost 7 % on earnings over $500, 000. When the study split residents into ten income bands—each contributing 10 % of total personal income—it revealed a striking imbalance. The bottom 883, 000 people together paid about 27 % of all taxes, an effective rate close to 40 %. In contrast, the top 478 earners paid less than 5 % of total taxes, with an effective rate just over 7 %.

So while the wealthy do pay more in absolute dollars, their share of overall tax revenue is tiny. The state has 120 people with net worths above $100 million, including 15 billionaires who own assets totaling over $86 billion. Yet they contribute a disproportionately small slice of tax money. Property taxes compound the problem for many families. Those who own homes with little equity pay taxes based on a large portion of the home’s value, sometimes more than their actual wealth. A person with a $100 million net worth living in a $10 million house faces taxes on only 10 % of their assets. Meanwhile, young families buying a $300 k home with a 20 % down payment see taxes assessed on 70 % of the house value, despite having only $60 k in equity. The obvious fix is a wealth tax—taxing total assets rather than just income. That would ensure those with the most resources contribute fairly, regardless of how they spend their money. Political leaders often promise tax cuts instead of addressing fairness. A few candidates have highlighted the disparity, but most stay silent on the issue. If more voices push for a truly balanced system, Connecticut could move toward a tax structure that reflects who can afford to pay the most.

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