Connecticut homeowners face the third-highest effective property tax rates in the country, trailing only two states, according to the Tax Foundation’s annual Property Taxes by State and County report.
Connecticut’s effective property tax rate is 1.92%, well above the national average (.98%) and surpassed only by New Jersey (2.23%) and Illinois (2.07%). This burden hits homeowners especially hard in a state already notorious for its high cost of living.
Using data from the 2023 American Community Survey, the Tax Foundation calculates average effective property tax rates based on the total taxes paid as a percentage of a home’s value. The analysis focuses on owner-occupied housing, excluding property taxes paid by businesses, renters, and other entities.
The report further breaks down the rates by planning region — all of which exceed the national average — highlighting the median home values and the five-year estimated property tax bills. Homeowners in the Greater Bridgeport Planning Region face the highest costs, paying $8,550 annually on homes valued at $397,000, resulting in an effective tax rate of 2.15%. The Capitol Planning Region, which includes Hartford, follows closely with a 2.14% tax rate, equating to $6,390 in median property taxes for homes valued at $298,200.
Other regions also shoulder significant tax burdens. Homeowners in the Naugatuck Valley Planning Region pay a 2.04% rate, amounting to $5,926 in annual taxes, while those in the South Central region, including New Haven, see an average bill of $6,676 with a 2.03% tax rate.
Even in areas with lower tax rates, like the Western Connecticut Planning Region, where the rate is at 1.47%, residents still face $9,222 in median annual property taxes due to higher home values averaging $625,400.
The lowest tax burden among Connecticut’s planning regions is in Northeastern Connecticut, where homeowners pay $4,340 annually on a $281,300 home, reflecting an effective tax rate of 1.54%. However, even in these areas, property taxes remain a major financial burden for homeowners.
Connecticut’s staggering property taxes stand out even more when compared to neighboring states. New York, with an effective tax rate of 1.60%, still falls below Connecticut, though some suburban counties near New York City impose tax bills that rival or even exceed those in the Nutmeg State.
Massachusetts homeowners fare slightly better, facing an effective rate of 1.11%, making Connecticut’s burden nearly a full percentage point higher.
Rhode Island’s property tax rate is at 1.32%, while New Hampshire, despite a 1.77% rate that comes closer to Connecticut’s, benefits from having no state income tax — a perk Connecticut residents don’t enjoy.
Even Vermont, with a 1.71% tax rate, does not face the same cost-of-living pressures as Connecticut, where high housing costs, steep income taxes, and expensive utilities make homeownership increasingly difficult.
The Tax Foundation report was not the only recent study that confirms Connecticut’s heavy tax burden.
In its annual ranking of state tax burdens, WalletHub examined state and local tax burdens — including income, sales, excise, and property taxes — across all 50 states and the District of Columbia. The findings? Connecticut ranks as the third-worst state for overall tax burden.
WalletHub calculated that the average Connecticut household pays 14.54% of its income in state and local taxes, far exceeding the national average of 10.92%. When it comes to property taxes specifically, Connecticut ranked 49th, with only Illinois and New Jersey imposing higher burdens.
There are several factors behind Connecticut’s excessive property tax burden. For one, the state relies heavily on local property taxes to fund essential services — particularly public education.
Additionally, Connecticut’s high cost of government — driven in part by generous public-sector pensions — continues to weigh on taxpayers. With the state’s pension obligations among the worst-funded in the country, local governments see property taxes as one of the few stable revenue sources to fund basic services.
State lawmakers remain divided on how to address Connecticut’s rising tax burden.
In a March 4 statement responding to WalletHub’s annual tax burden study, Sen. Steve Harding (R-Brookfield) and Sen. Ryan Fazio (R-Greenwich) highlighted Connecticut’s high tax burden, attributing rising costs to “one-party rule.” They pointed to high property taxes, income taxes, and hidden fees as key factors making the state increasingly unaffordable for middle-class residents and small businesses.
