Inheritance Tax in Connecticut: The Straight Facts
Learn about inheritance tax in Connecticut, why the state doesn’t have one, and why the state still has an estate tax.
Connecticut does not impose an inheritance (succession) tax. The state repealed its succession tax for people dying on or after January 1, 2005. Since then, Connecticut has relied on an estate-and-gift tax system instead. The estate-and-gift tax aimed at very large estates. If you’re near the threshold—or you’ve made substantial lifetime gifts—coordinated planning can help you use both spouses’ exemptions efficiently and avoid surprises.
No, but the state used to. Before 2005, Connecticut used a succession (inheritance) tax, which taxed heirs on what they received. That tax was phased out over time and then eliminated for deaths on or after Jan. 1, 2005.
At the same time, Connecticut updated its separate transfer-tax framework, ultimately unifying the estate tax and gift tax so lifetime taxable gifts count toward what can be transferred tax-free at death. In short, the state shifted away from taxing beneficiaries to taxing the estate itself (with credit for prior taxable gifts).
While There’s No Inheritance Tax in Connecticut, There Is Still an Estate Tax
Even though there’s no inheritance tax, Connecticut does have an estate tax. For 2025, the state exemption equals the federal amount—$13.99 million per person. Only the portion above that threshold is taxed by the state, at a flat 12% rate, with a $15 million cap on total Connecticut estate (and gift) tax.
A couple of practical implications for households:
Most estates won’t owe. With a $13.99 million exemption, the vast majority of families won’t pay any Connecticut estate tax. If an estate is at or below that threshold, the estate generally files a nontaxable return with the local Probate Court rather than with the Department of Revenue Services (DRS).
Gift tax is unified. Connecticut is one of the few states with a state gift tax. It’s unified with the estate tax, which means taxable gifts since 2005 reduce the remaining exemption available at death. (The exemption amount matches the federal lifetime estate-and-gift exemption.)
Why the State Kept an Estate Tax When Other States Didn’t
After the early-2000s federal changes that erased the state “pick-up” credit, many states let their estate taxes disappear. Connecticut, by contrast, retained a state-level transfer tax for a mix of revenue and progressivity reasons. Policy analyses in the state have framed the estate tax as a tool that focuses collections on the largest estates, diversifying revenue while exempting almost all households. Regardless, Connecticut got ride of its inheritance tax.
(Learn More: Revocable trusts in Connecticut versus Nevada.)