Cost of Living in Connecticut
Things cost about ▲ 4% more in Connecticut than the national average.
What Things Cost in Connecticut
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Connecticut presents a financial paradox. It has the highest per-capita income of any state, but its cost of living is only moderately above average at about 18% over the baseline. The real sting comes from property taxes, which are among the highest in the nation with an effective rate near 2%. A $350,000 home in Connecticut costs roughly $6,860 per year in property tax, compared to about $1,400 in Alabama. For homeowners, that difference is equivalent to hundreds of dollars per month in additional fixed costs that never go away. The state has lost population to lower-tax states in recent years, though proximity to New York City keeps the Fairfield County corridor competitive.
Connecticut at a Glance
Taxes in Connecticut
Connecticut's state income tax tops out at Up to 6.99%. The combined sales tax averages 6.35%. Property taxes run about 1.76% of home value, which on a $348,000 median home means roughly $6,125/year.
Explore Connecticut
FAQ About Connecticut
Connecticut relies heavily on property taxes to fund local services, particularly public schools. The state has no county-level government, so municipalities bear the full cost of local services. Combined with older housing stock that requires more maintenance, this creates effective property tax rates averaging about 1.96%. Cities like Hartford and Bridgeport have rates above 3%. This is the single biggest financial consideration for anyone buying a home in Connecticut.
For the right person, yes. Connecticut offers some of the best public schools in the country, proximity to New York City and Boston, beautiful New England scenery, and a high median income. The trade-offs are high property taxes, cold winters, and a state economy that has grown more slowly than the national average. Fairfield County is popular with NYC commuters willing to pay a premium for more space and top-tier schools.
Connecticut has a graduated income tax with rates from 3% to 6.99%. The top rate applies to income above $500,000 for single filers. There is also a 6.35% state sales tax. Combined with property taxes averaging about 1.96%, Connecticut has one of the highest overall tax burdens in the country.