Connecticut brokerage account growth calculator

What a taxable index-fund account is actually worth after expense-ratio drag and after Connecticut takes its share of the gain — which, in most states, is not at the federal preferential rate.

Connecticut taxes your gains as ordinary income

There is no state equivalent of the federal preferential rate here — a long-term gain is charged at Connecticut's normal income brackets, exactly like wages. This is the common case, and it surprises people who assume the federal 15% carries over. Taxed as ordinary income at the 2%-6.99% schedule, with no preferential rate, no exclusion and no separate capital gains schedule for individuals. Connecticut starts from federal adjusted gross income (Form CT-1040 Line 1), so a long-term gain arrives already inside the base and is carried through the additions and subtractions on Schedule 1 without any capital-gains-specific relief. Connecticut's separate capital gains tax on individuals was repealed decades ago when the personal income tax was adopted; proposals to add a surcharge on investment income have been introduced repeatedly and none has been enacted. LIMITATION: this is confirmed structurally from the return's own architecture rather than from a DRS statement that says 'no preferential rate exists'.