Connecticut Estate
Tax Calculator

Connecticut is the only state whose estate tax exemption matches the federal level, currently set at **$13.61 million**. This means Connecticut residents generally face state estate tax liability only when federal estate tax also applies.

The state levies a graduated rate schedule ranging from 12% to 12% on taxable estates, though legislative adjustments have pushed the exemption upward in recent years.

Connecticut also imposes a gift tax — one of the few states to do so — with a unified credit that ties the lifetime gift exclusion to the estate tax exemption. This unification means lifetime giving strategies must account for both federal and Connecticut exposure simultaneously.

Because Connecticut's exemption mirrors the federal exemption of approximately $15 million per individual (2025), most estates that owe Connecticut estate tax also owe federal estate tax. However, the rate structures differ: the federal top rate is 40%, while Connecticut's top rate is 12%.

Portability of the federal exemption between spouses is available, but Connecticut does not recognize portability for its own estate tax.

For married couples in Connecticut, structure bypass trusts or other vehicles to capture both spouses' Connecticut exemptions — portability is not available at the state level.

Connecticut's unified gift and estate tax system creates unique planning opportunities. Annual exclusion gifts reduce the taxable estate for both federal and state purposes, but taxable gifts above the annual exclusion consume the unified Connecticut credit.

Irrevocable life insurance trusts (ILITs) remain a core planning tool to exclude life insurance proceeds from both the federal and Connecticut taxable estates.

Connecticut also imposes a separate generation-skipping transfer tax that aligns with but does not mirror federal GST provisions. Multi-generational planning in Connecticut requires careful coordination of federal and state layers.

Use this estate tax estimator to model Connecticut estate tax liability alongside federal exposure. Input estate values, applicable deductions, and prior taxable gifts to see a combined estimate — free for all 50 states plus DC.

Connecticut residents with taxable estates face a two-layer system: the federal estate tax (exemption of $15 million in 2025, top rate of 40%) and the Connecticut estate tax (exemption of $13.61 million). The gap between these exemptions creates a range where only the state tax applies.

An estate valued at $8 million, for example, may owe Connecticut estate tax while owing nothing at the federal level.

The federal return (Form 706) allows a deduction for state estate taxes paid, which partially offsets the double-taxation effect but does not eliminate it. The state tax is deductible on the federal return as an estate administration expense or under the state death tax credit rules, depending on the estate's circumstances.

The net result is that combined effective rates in Connecticut can exceed 45% on estates large enough to trigger both layers.

Planning for this interaction requires modeling both taxes simultaneously. Strategies that reduce the Connecticut taxable estate — such as lifetime gifts, charitable bequests, and irrevocable trusts — may also reduce federal exposure, but the relative benefit depends on where the estate falls within each jurisdiction's rate brackets.

Use our Connecticut estate tax calculator to model both layers side by side, and check the Connecticut probate cost calculator to estimate administration expenses.

Federal law permits a surviving spouse to use the deceased spouse's unused exclusion (DSUE) — commonly called portability — by timely filing Form 706 for the first-to-die spouse. This allows married couples to shelter up to $30 million federally without trust-based planning.

However, most estate-tax states, including Connecticut, do not offer portability of the state exemption.

This asymmetry makes bypass trusts (also called credit shelter trusts or B trusts) essential in Connecticut. At the first spouse's death, funding a bypass trust up to the Connecticut exemption amount preserves that exemption for state tax purposes.

Without the trust, the unlimited marital deduction passes everything to the surviving spouse tax-free at the first death — but the surviving spouse's estate then has only one Connecticut exemption, effectively wasting the first spouse's.

The bypass trust should be sized carefully. Overfunding it beyond the Connecticut exemption wastes the marital deduction benefit; underfunding it fails to capture the full state exemption.

For married couples with estates above $13.61 million but below $15 million, the bypass trust is the single most impactful planning tool available. Review your plan with the Connecticut estate tax estimator, and use the executor fee calculator to account for administration costs in your projections.

The $13.61 million Connecticut exemption establishes a lower threshold than the federal exemption, making proactive estate reduction strategies more urgent. Irrevocable trusts are the primary vehicle: irrevocable life insurance trusts (ILITs) remove life insurance proceeds from the taxable estate, spousal lifetime access trusts (SLATs) allow married couples to remove assets while retaining indirect access, and qualified personal residence trusts (QPRTs) transfer a home at a discounted gift tax value.

Annual exclusion gifting — currently $19,000 per recipient (2025) — reduces the taxable estate dollar-for-dollar without consuming the lifetime gift exemption. For Connecticut residents near the $13.61 million threshold, a sustained gifting program over several years can bring the estate below the state exemption entirely.

Charitable remainder trusts (CRTs) and charitable lead trusts (CLTs) offer additional reduction while generating income tax deductions.

GRATs (grantor retained annuity trusts) are particularly effective in low-interest-rate environments, transferring asset appreciation to beneficiaries with minimal or zero gift tax cost. For Connecticut business owners, entity-level planning — family limited partnerships, LLCs with valuation discounts, and buy-sell agreements — can reduce the reportable value of closely held interests for both state and federal purposes.

Compare strategies using the Connecticut estate tax calculator or find a Connecticut estate planning attorney.