State Tax in Connecticut

Paying state taxes is something that all residents of the United States are used to. Each year individuals of working age file taxes in their state and prepare to either pay or owe money. What many individuals forget to factor into their budgets are the everyday taxes that are paid to the state, and Connecticut taxation law even allows the state to come looking for unpaid taxes after your death.

Taxes Laws Regarding Luxury Items

Even though the state of Connecticut does not require individuals to pay taxes on necessities like food and medication they make up for this generosity in other ways. Connecticut tax laws impose heavy fines at the pump at 43.9 cents per gallon of gas. Anyone who needs to purchase furniture, CDs, DVDs or any other item for entertainment purposes can expect to pay a six per cent sales tax. Lastly, smokers are hit hardest paying an astonishing $2.00 for sales tax on each pack of 20 cigarettes.

Laws on Inheritance Taxes

Not only are individuals in Connecticut required to pay taxes on gas and personal items, they can also expect to pay taxes on anything that they inherit. This often comes as a serious blow to anyone who has already lost a family member or who is dependent upon their inheritance to help cover funeral expenses or other expenses related to the recent loss. In Connecticut the transfer of any estate is taxed if it is valued at over two million dollars. While many people do not believe this tax will affect them because the estate they are being left should be modest, these same people are later amazed to find that their parents or family has managed to amass over two million dollars worth of property only to learn that they will be taxed up to 16 per cent to obtain their inheritance.

Tax Breaks in Connecticut

The state of Connecticut is not completely heartless and many people can hope to benefit from the laws offering exemption for certain types of state tax in Connecticut. While no deductions are offered for Medical, Dental, or Federal Taxes when filing state income taxes in Connecticut, individuals who have an income of less than $50,000 will find their social security benefits tax exempt. This act provides relief for many seniors that simply cannot afford to pay state taxes on their severely limited income. There are also tax and rent rebates available to senior citizens as well or to the surviving spouse of one who previously received the benefit as long as the spouse is 50 years of age or older.

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