Does Connecticut tax capital gains?

Yes. Connecticut has no preferential capital-gains rate. Both short-term and long-term capital gains are taxed as ordinary income under Connecticut's graduated 2% to 6.99% brackets, the same rates that apply to wages, so investors do not get the federal-style discount at the state level.

What is the federal long-term capital gains rate?

Federal long-term gains — on assets held more than a year — are taxed at 0%, 15%, or 20% depending on your total taxable income and filing status. The gain stacks on top of your ordinary income, so part of a large gain can fall into a higher bracket than the rest.

How are short-term gains taxed in Connecticut?

Short-term gains, on assets held one year or less, are taxed at your ordinary federal income-tax rate plus Connecticut's ordinary graduated rate. Connecticut does not distinguish between short- and long-term gains, so the state portion is identical either way.

What is the Net Investment Income Tax?

The NIIT is an extra 3.8% federal tax on investment income, including capital gains, for filers with modified AGI above $200,000 (single) or $250,000 (married filing jointly). It applies to the smaller of your net investment income or the amount of MAGI over the threshold.

Does Connecticut have a capital gains surtax?

Connecticut applies an additional 1% surtax on certain investment income only for very high-income filers above set thresholds. This calculator models the standard graduated rates; high earners should consult Form CT-1040 instructions to see whether the surtax applies to them.

Connecticut Capital Gains Tax Calculator

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When you sell an investment at a profit in Connecticut, you owe both federal and state tax, and Connecticut taxes the gain like ordinary income rather than at a discounted rate. This calculator stacks your gain on top of your other income to estimate the combined federal and Connecticut bill accurately.

How it works

The tool computes three pieces and adds them:

federal (long-term)  = 0% / 15% / 20% bands, with the gain stacked on income
federal (short-term) = ordinary federal brackets on the gain
NIIT                 = 3.8% × min(gain, MAGI − threshold)
Connecticut          = graduated 2%–6.99% brackets on the gain (ordinary)
total                = federal gains tax + NIIT + Connecticut tax

Because long-term federal rates depend on where the gain sits relative to your other income, the tool fills the 0% band first, then 15%, then 20%. Connecticut applies its ordinary brackets to the gain regardless of holding period.

Example

A single filer with $90,000 of other taxable income realizes a $50,000 long-term gain. Stacked on $90,000, the entire gain falls in the federal 15% band, giving $7,500 of federal tax. MAGI of $140,000 is under the $200,000 NIIT threshold, so no NIIT applies. Connecticut taxes the $50,000 at its ordinary rates (roughly 5.5% to 6% in this range), adding about $2,900 — a combined total near $10,400.

Notes

This is an estimate. It does not include federal income tax on your other income, state capital-loss carryovers, the qualified-small-business-stock exclusion, or the Connecticut 1% high-income investment surtax. Section 1202 stock, collectibles (28%), and unrecaptured Section 1250 gain (25%) have special federal rates not modeled here. Confirm on Schedule D and Form CT-1040.