Does Connecticut have an exit tax?

Connecticut does not have a formal exit tax. However, the Connecticut Department of Revenue Services may review your tax return if you claim part-year resident status. Connecticut uses a "domicile" test—you're considered a resident if your permanent legal home is in Connecticut OR if you maintain a permanent place of abode in CT and spend more than 183 days there. Properly documenting your Florida domicile is essential.

How does the Connecticut estate tax affect my financial planning?

Connecticut is one of only 12 states (plus DC) that imposes its own estate tax, with a current exemption of $13.61 million (2024) and rates up to 12%. By establishing Florida residency, you can avoid Connecticut's estate tax entirely since Florida has no estate tax or inheritance tax. For high-net-worth individuals, this can save families hundreds of thousands or even millions of dollars. Consult an estate planning attorney for guidance specific to your situation.

How does Connecticut tax capital gains?

Connecticut taxes capital gains as ordinary income at rates up to 6.99%. By establishing Florida residency before selling appreciated assets (stocks, real estate, business interests), you could potentially eliminate state-level capital gains tax entirely. However, timing is critical—Connecticut can tax gains on assets sold while you were still a CT resident. Plan your domicile change carefully with a tax professional.

What is Connecticut's pass-through entity tax and how does it affect business owners?

Connecticut's pass-through entity tax (PET) requires entities like S-Corps and partnerships to pay a 6.99% tax on Connecticut-sourced income at the entity level. Owners receive a credit against their personal Connecticut income tax. If you move to Florida, you may still owe Connecticut PET on income sourced to Connecticut, but your non-CT income would no longer be subject to Connecticut tax.

How much can I save by moving from Connecticut to Florida?

Connecticut's top marginal rate is 6.99%. For someone earning $200,000, potential state tax savings could be $10,000+ annually. For $500,000 in income, savings could exceed $30,000. When you add estate tax savings for estates over the exemption amount, the lifetime savings can be significantly larger. Florida has no state income tax, no estate tax, and no inheritance tax.

Can Connecticut tax me on income earned after I leave?

Once you establish Florida domicile, Connecticut can only tax "Connecticut-source income"—income from work physically performed in Connecticut, rental income from Connecticut property, or income from Connecticut-based businesses. Your investment income, retirement income, and income earned outside Connecticut would no longer be taxable to Connecticut.

What is the 183-day rule in Connecticut?

Connecticut has a statutory residency rule: even if you change your domicile to Florida, you can still be taxed as a Connecticut resident if you maintain a permanent place of abode in CT AND spend more than 183 days there during the tax year. To avoid this, either sell or rent out your Connecticut home and carefully track your days in each state.

What documents should I keep to prove I left Connecticut?

Maintain: Florida driver's license, Florida voter registration, Declaration of Domicile filed in Florida, lease or deed for Florida residence, utility bills in Florida, records of time spent in each state (calendars, travel receipts), Florida vehicle registration, updated estate documents executed in Florida, records of Connecticut ties severed with dates, and any documentation showing Florida as your primary home.

Connecticut → Florida Tax Migration

Escape Connecticut's 6.99% Tax + Estate Tax

Connecticut is one of the few states with both income tax AND estate tax. Save $5,000-$35,000+ annually by establishing Florida residency. We help you navigate the domicile change, document your move, and protect your estate.

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Your Connecticut Tax Savings

See how much you could save by moving from Connecticut to Florida

Your Annual Income

$150,000

🍂

Connecticut

$8,050/year in state tax

Up to 6.99% marginal rate

🌞

Florida

$0/year in state tax

0% state income tax

YOUR ESTIMATED ANNUAL SAVINGS

$8,050

That's $80,500 over 10 years (income tax only — estate tax savings additional)

*Estimate based on Connecticut 2024 tax brackets. Does not include estate tax savings. Individual results vary. Consult a tax professional.

How to Leave Connecticut the Right Way

Our 5-step process protects you from state tax audits

Document Your Intent to Leave Connecticut

Establish clear evidence of your intent to make Florida your permanent home. Create a timeline, document your reasons for relocating, and prepare for potential scrutiny from the Connecticut Department of Revenue Services.

Set Up Your Florida Address & Virtual Mailbox

Get a legitimate Florida residential address. Complete USPS Form 1583 with remote notarization. Your mail will be scanned and accessible from anywhere.

Obtain Florida Driver's License & Update Voter Registration

Surrender your Connecticut license and get a Florida license. Register to vote in Florida. These are two of the strongest indicators of domicile change.

Sever Connecticut Ties Systematically

Close Connecticut bank accounts, update professional licenses, move financial advisors, cancel Connecticut memberships, and update your estate plan. Document everything for potential audit protection.

File Your Final Connecticut Return & Maintain Florida Ties

File a part-year return for Connecticut. Going forward, build Florida ties: register vehicles, update estate documents (critical for avoiding CT estate tax), and maintain records of your Florida activities.

Complete Guide

Florida Residency: Everything You Need to Know

Learn about Florida's tax advantages, residency requirements, and how to establish domicile.

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Connecticut Exit FAQ

Common questions about leaving Connecticut for Florida

Ready to Leave Connecticut Taxes Behind?

Eliminate Connecticut's income tax AND estate tax by establishing Florida residency. We'll help you make the move properly and protect your wealth.

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