Connecticut is one of the wealthiest and most expensive states in the country, with the highest per-capita income in the U.S. but also a heavy tax burden and some of the highest property taxes nationally (2.15% effective rate, 3rd highest). The state’s economy is driven by financial services (insurance capital of the world — Hartford), defense (Electric Boat/General Dynamics), healthcare, and proximity to New York City. Fairfield County in southwestern CT has NYC-commuter incomes above $130,000, but even moderate-income households face a combined tax load (income + property) that exceeds 34% of gross income. Eastern Connecticut and smaller cities like New Haven, Waterbury, and New London offer more affordable housing, though job markets are more limited.
Connecticut at a Glance
| Metric | Value | National Rank |
|---|---|---|
| Population (2024) | 3.6 million | 29th |
| Median household income | $90,213 | 6th |
| Median home price | $385,000 | Above average |
| Cost of living index | 122 | 8th highest |
| State income tax | 3-6.99% | Above average |
| Sales tax | 6.35% | Average |
| Property tax (effective rate) | 2.15% | 3rd highest |
Income in Connecticut
| City/Metro Area | Median Household Income | Cost of Living Index |
|---|---|---|
| Greenwich/Stamford | $135,000 | 155 |
| Fairfield | $120,000 | 140 |
| Danbury | $92,400 | 128 |
| Hartford | $78,200 | 108 |
| New Haven | $52,800 | 112 |
| Bridgeport | $48,400 | 118 |
| Waterbury | $46,200 | 102 |
| Norwich/New London | $68,500 | 108 |
Housing in Connecticut
| City/Area | Median Home Price | Median Rent (2BR) | Price-to-Income |
|---|---|---|---|
| Greenwich | $1,850,000 | $3,500 | 13.7 |
| Stamford | $680,000 | $2,800 | 6.8 |
| Fairfield | $630,000 | $2,400 | 5.3 |
| Hartford (suburbs) | $320,000 | $1,550 | 4.1 |
| New Haven | $280,000 | $1,500 | 5.3 |
| Waterbury | $215,000 | $1,200 | 4.7 |
| Norwich | $265,000 | $1,300 | 3.9 |
| State Average | $385,000 | $1,650 | 4.3 |
Taxes in Connecticut
Income Tax Brackets
| Taxable Income (Single) | Tax Rate |
|---|---|
| $0 – $10,000 | 3.0% |
| $10,001 – $50,000 | 5.0% |
| $50,001 – $100,000 | 5.5% |
| $100,001 – $200,000 | 6.0% |
| $200,001 – $250,000 | 6.5% |
| $250,001 – $500,000 | 6.9% |
| Over $500,000 | 6.99% |
Total Tax Burden (HIGH)
| Gross Income | Federal | CT Income Tax | FICA | Property Tax ($385K) | Total Rate |
|---|---|---|---|---|---|
| $75,000 | $8,115 | $3,478 | $5,738 | $8,278 | 34.1% |
| $100,000 | $13,615 | $4,978 | $7,650 | $8,278 | 34.5% |
| $150,000 | $25,915 | $7,978 | $10,878 | $8,278 | 35.4% |
Connecticut’s 2.15% effective property tax rate is the 3rd highest in the US — on a $385K home, that’s $8,278/year.
Connecticut Pros and Cons
| Financial Pros | Financial Cons |
|---|---|
| 6th highest household income | 3rd highest property taxes in US |
| Proximity to NYC job market | Above-average income tax (up to 6.99%) |
| Strong public schools | High overall cost of living (122 index) |
| No tax on Social Security (most filers) | Population declining (outmigration) |
| High-paying finance and insurance jobs | Limited affordable housing options |
Related: Cost of Living by State | State Income Tax Rates | Property Tax by State | Average Rent by State
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