Does connecticut have an estate tax? Yes, it does. Connecticut is one of about a dozen states with its own estate tax, separate from the federal one. If you are planning ahead or settling a loved one’s estate right now, that may sound worrying. However, the good news is simple.
Connecticut’s exemption is very high. For people who die in 2026, the tax only applies to estates worth more than $15 million. In most cases, families will not owe any Connecticut estate tax at all. Even so, there is still paperwork to file. This guide walks through the rules, the numbers, and the next steps in plain English.
Does Connecticut Have an Estate Tax? The Short Answer
An estate tax is a tax on everything a person owns when they die. That includes a home, bank accounts, investments, life insurance, and retirement accounts. The tax comes out of the estate before the heirs receive their share. It is different from an inheritance tax, which heirs pay themselves. Connecticut does not have an inheritance tax.
So, does connecticut have an estate tax that most families need to worry about? Typically, no. Since 2023, Connecticut has matched its exemption to the federal estate tax exemption. The federal exemption rose to $15 million per person in 2026 under the One Big Beautiful Bill Act. As a result, Connecticut’s exemption is also $15 million for 2026. It will be adjusted for inflation in future years.
Connecticut also stands out in one way. It is the only state with its own gift tax. Large gifts you make while living count toward the same $15 million exemption. The rules are found in Connecticut General Statutes Section 12-391 (estate tax) and Section 12-642 (gift tax).
Connecticut Estate Tax Rules and Exact Figures
When people ask “does connecticut have an estate tax,” they usually want the numbers. Here they are. The rate is a flat 12% on the amount above the exemption. For example, a 2026 estate worth $16 million would pay tax only on the $1 million above the line. That would be about $120,000. There is also a cap. No estate pays more than $15 million in combined Connecticut estate and gift tax.
| Item | Connecticut Rule (2026) |
|---|---|
| Exemption per person | $15,000,000 (matches federal) |
| Tax rate above exemption | Flat 12% |
| Maximum total tax | $15,000,000 (estate and gift combined) |
| Portability between spouses | Not allowed |
| Inheritance tax | None |
| Gift tax | Yes, shares the same exemption |
| Due date | 6 months after death (extension available) |
| Main forms | CT-706/709 (taxable) or CT-706 NT (not taxable) |
One rule surprises many married couples. Connecticut does not allow “portability.” Portability means a surviving spouse can use the unused exemption of the spouse who died first. The federal system allows it, but Connecticut does not. As a result, any unused Connecticut exemption is lost at the first death. However, property left to a surviving spouse is generally not taxed at all. This is called the unlimited marital deduction.
Non-residents can be affected too. For example, someone living in Florida who owns a summer home in Connecticut may owe tax on that property if the estate is large enough.
What to Do Next if You Are Settling an Estate
First, take a breath. You do not have to figure this out in one day. The person handling the estate is called the executor, or the administrator if there was no will. Probate is the court process that confirms the will and oversees the transfer of property. In Connecticut, that happens in your local Probate Court.
Next, make a simple list of what the person owned and what each item was worth on the date of death. This list helps with every step. In most cases, the total will be far below $15 million. Even then, Connecticut generally requires a filing. For estates that owe no tax, the executor typically files Form CT-706 NT with the Probate Court. For estates that may owe tax, Form CT-706/709 goes to the Department of Revenue Services. That filing is done through the state’s online system, myconneCT.
Finally, watch the deadline. The return and any tax are due six months after the date of death. You may be able to request a six-month extension to file. However, an extension to file is not always an extension to pay. If the estate is large or complicated, check with the Probate Court or a licensed Connecticut attorney.
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If you are planning ahead instead, many families can simply keep an updated list of their assets. Couples with larger estates may want to talk with a professional about Connecticut’s no-portability rule.
Frequently Asked Questions
Does connecticut have an estate tax for small estates?
Technically, the tax exists for everyone, but it only applies above $15 million in 2026. As a result, most estates owe nothing. However, the executor typically still files Form CT-706 NT with the Probate Court.
Do I pay Connecticut tax on money I inherit?
No. Connecticut does not have an inheritance tax. In most cases, heirs receive what they inherit without owing state tax on it. Any estate tax is paid by the estate before property is handed out.
Does connecticut have an estate tax that can take my spouse’s unused exemption?
No. Connecticut does not allow portability between spouses. For example, if the first spouse uses only part of the exemption, the rest is lost for state purposes. Couples with large estates may want to review their plans with a licensed attorney.
Make Sure Your Plan Actually Works
A will or trust only does its job if the rest of your plan lines up. Two quick checks before you finish:
- Get your state’s exact rules — witnesses, notary, probate cost, and tax thresholds vary by state.
- Beneficiary forms beat your will — make sure your life-insurance beneficiaries are current, because named beneficiaries pass outside your will.
Sources & How to Verify
This guide is built from official sources. Always confirm the exact figure for your state:
- IRS — Estate & Gift Tax: irs.gov
- USA.gov — What to do when someone dies: usa.gov/death
- Uniform Law Commission (probate): uniformlaws.org
- Cornell Legal Information Institute: law.cornell.edu
- Your state’s probate court self-help portal and revenue department for the current statute and dollar figures.
Verified October 2026. Estate figures change — if you spot anything outdated, please contact us.
Related Guides
- Wills by State
- Trusts & Living Trusts by State
- Estate & Inheritance Tax by State
- Plain-English Estate Glossary
Disclaimer. This page is for general information only and is not legal or tax advice. Wills, probate, and estate-tax rules vary by state, county, and situation, and change over time. We are not a law firm, tax advisor, or financial planner, and we assume no liability for accuracy or completeness. For your specific situation — especially an active probate or a tax deadline — verify with your state’s court, statute, revenue department, or a licensed attorney in your state.