Quick facts:
-Connecticut is one of a few states that have both a Capital Stock Tax and also an Estate Tax.
-Connecticut is fairly inexpensive to open an LLC.
The state of Connecticut has an individual income tax. Like most states with income tax, it is calculated on a marginal scale whose range is from 3% to 6.99% for 2020.
Connecticut is one of three states that have a “tax benefit recapture” where the top tax rate (6.99%) is applied to all income if your income exceed the top tax bracket of $500,000 (the other two states are Arkansas and New York.)
The state of Connecticut has a flat Corporate Tax rate of 7.5%.
Connecticut is one of a few states that has a Capital Stock Tax. The tax rate is .341% upto a maximum payment of $1,000,000. Connecticut differs from other states in that taxpayers pay the greater of corporate income tax or capital stock tax liability.
Connecticut doesn’t have a local tax rate. The state rate is 6.35% (This is high for a state tax but average considering there is no local tax).
The average property tax rate for residential property in the state of Connecticut is 1.70%, making it a less preferable place to own property. The property tax here is ranked as the 3rd highest per capita with average tax collections of $3,020.
Connecticut is one of the few states that have state estate taxes. After an exemption amount of $5.1 million, the tax rate ranges from 10%-12%. Connecticut’s exemption is expected to match the federal amount by 2023.
Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:
Connecticut is one of the cheapest states in the country to set up your LLC. Here are some important facts:
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