If you’ve heard that “most states don’t have an estate tax,” you’re right—many phased theirs out after the early 2000s. Connecticut is an exception. The state keeps an estate tax on the books, and it matters for high-net-worth households (and anyone owning significant real or tangible property in the state). (Although the state doesn’t have an inheritance tax.)
From “Pick-Up” to a Standalone Tax
Before the 2000s, Connecticut estate tax piggybacked on a federal credit (often called a “pick-up” tax). When Congress phased out that credit (2001 law; fully gone by 2005), many states let their estate taxes disappear with it. Connecticut instead reestablished a state-level estate tax, and over time adjusted thresholds, rates, and a cap on maximum tax.
Policy research within the state points to two big reasons: revenue stability and progressivity. Keeping an estate tax can diversify revenue and target collections to the largest estates, which has been cited as a way to address inequality while protecting most families from any state-level transfer tax at all. Connecticut analysts have explicitly framed the estate tax as a tool that reaches only the very top of the wealth distribution.
For decedents dying in 2026, Connecticut’s exemption equals $15,000,000 per person. Only the portion above that is subject to Connecticut tax. The state imposes a flat 12% rate on amounts over the exemption, and there’s a $15 million cap on total Connecticut estate (and gift) tax for a decedent.
A Few Practical Details:
Who is subject to it. Resident estates (domiciled in CT) and nonresidents who own Connecticut real or tangible personal property can be liable once the CT-taxable estate exceeds the exemption.
Unified with the gift tax. Connecticut uniquely also has a state gift tax that’s unified with the estate tax. Prior Connecticut-taxable gifts reduce the remaining exemption and are reconciled at death; the 2026 gift-tax exemption is also $15,000,000.
State QTIP election. Executors can make a Connecticut-only QTIP election (even when no federal QTIP is made) to defer state tax for a surviving spouse—done on Form CT-706/709.
Portability. Unlike federal law, Connecticut’s exemption is not portable between spouses; classic credit-shelter planning remains relevant at the state level.
What Connecticut Estate Tax Means for Households
For the vast majority of families, Connecticut estate tax won’t apply at all because the exemption is high. But if your net worth (including CT real estate and tangible property) approaches eight figures, state planning choices can move real dollars.
Married couples. Because Connecticut doesn’t offer portability, relying solely on the survivor to use “both” exemptions can backfire. Coordinated planning (e.g., credit-shelter and/or state-QTIP structures) can preserve the first spouse’s CT-level exemption even when all assets ultimately benefit the survivor. Many families use revocable trusts as part of this planning to ensure assets transfer smoothly while maximizing state exemptions.
Gifting strategy. Lifetime gifting can still be powerful, but Connecticut tracks taxable gifts since 2005 against your state exemption. Large gifts you’ve already made eat into what’s available at death.
The cap and combined burden. For very large estates, Connecticut’s $15 million cap limits exposure. Also remember: any Connecticut estate tax paid is deductible for federal estate tax purposes, which moderates the combined top-end burden.
(Learn More: Revocable trusts in Connecticut versus Nevada and the cost of probate in Connecticut.)