Connecticut Estate Tax: Exemption and Rate Guide

For deaths in 2026, Connecticut exempts the first $15 million of an estate, then taxes the rest at a flat 12 percent.1

So most families owe nothing, but an estate that crosses the line owes 12 cents on every dollar above it, and Connecticut is the only state with a stand-alone gift tax on large lifetime gifts.1 This guide lays out who pays, how much, and how the state tax differs from the federal one and from Medicaid estate recovery.

In This Guide

• Connecticut Estate Tax at a Glance
• How the Connecticut Estate Tax Works
• Estate Tax vs. Inheritance Tax
• The Federal Estate Tax Is Separate
• This Is Not Medicaid Estate Recovery
• Frequently Asked Questions
• Next Steps

Connecticut Estate Tax at a Glance

Here is the whole picture in one place. The numbers below are for deaths in 2026.

The headline is the exemption. Connecticut ties its exemption by statute to the federal one, so for 2026 both are $15 million per person, and the vast majority of estates fall well under the line and owe nothing.1 Connecticut has no separate inheritance tax, so heirs are not taxed on what they receive.

How the Connecticut Estate Tax Works

The estate tax is paid by the estate, before anything is distributed to heirs. It is calculated on the value of everything the person owned at death, above the exemption.

The exemption. For 2026, the first $15 million of an estate passes Connecticut estate tax free.1 Connecticut law sets its exemption to the federal basic exclusion amount, so the two move together. An estate that owes no federal estate tax usually owes no Connecticut estate tax either.

The rate. Anything above the exemption is taxed at a flat 12 percent.1 There is no graduated ladder here. Twelve cents on every dollar over the line, full stop.

The cap. Connecticut limits the combined gift and estate tax it will collect to $15 million, no matter how large the estate.1 That ceiling only matters for the very largest estates, but it is a real feature of the law.

The gift tax catch. Connecticut is the only state in the country that imposes a stand-alone gift tax, and for gifts made on or after January 1, 2026 its gift tax exemption is also $15 million.1 That $15 million covers the aggregate of every Connecticut taxable gift made since January 1, 2005, not each gift on its own.1 So you cannot hand a large estate out in pieces during your lifetime and stay under the line.

Filing. The state Department of Revenue Services publishes Connecticut's current estate and gift tax forms, filing thresholds, and instructions, including which return applies to an estate of a given size.

If your estate is anywhere near the exemption, this is the moment to bring in an estate attorney. The gift tax, trusts, and the timing of transfers all change the math, and a good plan made early can save a large estate a 12 percent hit it never needed to take.

Estate Tax vs. Inheritance Tax

These two get mixed up constantly, and the difference decides who actually writes the check.

• An estate tax is paid by the estate. It comes off the top, out of the deceased person's assets, before heirs receive anything. Connecticut has this one.
• An inheritance tax is paid by each heir on what they personally receive, and the rate often depends on how closely related they are. Connecticut does not have this one.1

So in Connecticut there is exactly one state death tax to worry about, the estate tax, and it is settled by the estate. If you inherit money from a Connecticut estate, you do not owe Connecticut a separate inheritance tax on it.

The Federal Estate Tax Is Separate

Connecticut's estate tax sits on top of a completely separate federal estate tax. They are filed separately and calculated independently.

For 2026, the federal basic exclusion is $15,000,000 per person, and the top federal rate is 40 percent, filed on IRS Form 706.2 Because the federal exemption is so high, the large majority of estates nationwide owe no federal estate tax at all.2

In Connecticut's case, the state exemption and the federal exemption are the same $15 million for 2026, so the two taxes tend to kick in at the same point.1 An estate large enough to owe Connecticut's 12 percent is usually large enough to owe the federal 40 percent too, and it files both returns.

This Is Not Medicaid Estate Recovery

One more thing families confuse with the estate tax: Medicaid estate recovery. It is a separate process entirely.

Estate recovery is how a state seeks repayment from the estate of someone who received long-term-care Medicaid, usually by claiming against the home after death. It has nothing to do with the size of the estate or the estate tax exemption. A modest estate that owes zero Connecticut estate tax can still face a Medicaid recovery claim, and a large taxable estate that never used Medicaid faces none. They run on different tracks. Our full explainer on Medicaid estate recovery walks through how that one works.

Next Steps

If your estate is comfortably under the $15 million exemption for 2026, Connecticut's estate tax is not your problem.1 If you are near or over the line, act early.

• Add up the whole estate, including life insurance, retirement accounts, and real estate, and compare it to the $15 million exemption for 2026.1
• Count your large lifetime gifts, because Connecticut taxes gifts too, and every Connecticut taxable gift you have made since 2005 counts against one $15 million gift tax exemption.1
• See an estate attorney if you are anywhere near the exemption. Trusts and transfer timing can change a 12 percent bill, and the gift tax makes do-it-yourself planning risky here.

For the bigger financial picture, our guide to building a senior care funding plan ties taxes, benefits, and care costs together, and if a home is part of the estate, selling or renting a home for care covers that trade-off.

Learn More

Find personalized help understanding the Connecticut estate tax and your family's plan at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.