Connecticut exempts the first $13.99 million of an estate, then taxes the rest at a flat 12 percent.
So most families owe nothing, but the few who do face a steep bill, and Connecticut is the one state that also taxes large lifetime gifts. 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 2025.
| Feature | Connecticut |
|---|---|
| State estate tax? | Yes |
| State inheritance tax? | No |
| 2025 exemption | $13.99 million per person |
| Top rate | Flat 12% above the exemption (tax capped at $15M) |
| Portability of unused exemption | n/a (Connecticut does not offer state portability) |
The headline is the exemption. Connecticut's matches the federal exemption of $13.99 million per person for 2025, so the vast majority of estates fall well under the line and owe nothing. 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 2025, the first $13.99 million of an estate passes Connecticut estate tax free. Because that figure tracks the federal exemption, an estate that owes no federal estate tax usually owes no Connecticut estate tax either. Starting January 1, 2026, the exemption rises to $15 million per person to keep matching the federal number.
The rate. Anything above the exemption is taxed at a flat 12 percent. There is no graduated ladder here the way some states have. Twelve cents on every dollar over the line, full stop.
The cap. Connecticut limits the total estate tax it will collect to $15 million, no matter how large the estate. That ceiling only matters for estates in the hundreds of millions, but it is a real feature of the law.
The gift tax catch. Connecticut is the only state in the country with its own gift tax, and it is unified with the estate tax. Large taxable gifts you make during your lifetime count against the same exemption, so you cannot simply give the estate away tax free before death to dodge the state tax. Reportable gifts and the estate are tallied against one shared exemption.
Filing. A taxable Connecticut estate files Form CT-706/709 with the Department of Revenue Services; smaller, non-taxable estates file Form CT-706 NT with the Probate Court. The state Department of Revenue Services publishes the current forms and instructions.
If your estate is anywhere near the exemption, this is the moment to bring in an estate attorney. The unified 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.
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 2025, the federal basic exclusion is $13,990,000 per person, and the top federal rate is 40 percent, filed on IRS Form 706. Because the federal exemption is so high, the large majority of estates nationwide owe no federal estate tax at all.
In Connecticut's case, the state exemption and the federal exemption are the same $13.99 million for 2025, so the two taxes tend to kick in at the same point. 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.
Trying to figure out how an estate tax bill or a recovery claim affects your family's plan? Talk to Brevy's care navigator to sort out the pieces.
Frequently Asked Questions
Yes. Connecticut levies a state estate tax on the value of an estate above the exemption, which is $13.99 million per person for deaths in 2025. The rate is a flat 12 percent on the amount over that line. Connecticut does not have a separate inheritance tax.
For 2025 it is $13.99 million per person, matching the federal exemption. Estates below that owe no Connecticut estate tax. The exemption rises to $15 million per person on January 1, 2026, again tracking the federal figure.
A flat 12 percent on the value of the estate above the exemption. Unlike many states, Connecticut does not use a graduated ladder of rates. The total Connecticut estate tax is also capped at $15 million.
No. Connecticut has an estate tax but no inheritance tax. The estate settles the estate tax before heirs are paid, and heirs do not owe Connecticut a separate tax on what they inherit.
Yes, and it is the only state that does. Connecticut's gift tax is unified with its estate tax, so large lifetime taxable gifts count against the same $13.99 million exemption. You cannot give a large estate away before death to escape the state estate tax.
Next Steps
If your estate is comfortably under $13.99 million, Connecticut's estate tax is not your problem, and no filing is required for that purpose. 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 current exemption.
- Count your large lifetime gifts, because Connecticut's unified gift tax pulls them into the same calculation.
- 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
- Connecticut Senior Property Tax Relief
- Connecticut Retirement Income Tax
- Which States Have an Estate or Inheritance Tax
- Building a Senior Care Funding Plan
- Selling or Renting a Home for Care
- Medicaid Estate Recovery
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.