Quick answer: up to 6.99%, taxed exactly as ordinary income — Connecticut gives long-term gains no special discount at all. See the full cost picture in the Connecticut probate real estate sale calculator.
No preferential rate for long-term gains
The recapture quirk that catches high earners
Connecticut's income tax includes a genuinely distinctive "tax benefit recapture" provision: for high-income taxpayers, it phases out the advantage of the state's lower brackets, effectively pushing much of their income — potentially including a large sale gain — toward the top marginal rate rather than only the portion above each threshold.
A surcharge proposal still pending, not yet law
As of 2026, a legislative proposal would add a 1.75% surcharge on net capital gains starting with the 2027 tax year for high earners, with a one-time exclusion for the sale of a primary residence — but this had not been enacted as of this writing, so it doesn't apply to a 2026 sale.
The estate tax question is separate, and rarely triggered
Connecticut's own estate tax exemption for 2026 is aligned with the federal threshold at roughly $15 million, so most estates owe nothing there regardless of how large the sale gain itself turns out to be.
A local probate attorney can review your estate — many offer a free consultation.
The 6.99% top rate and the recapture provision apply identically whether the sale closes in Hartford, Stamford, New Haven, or any other Connecticut town.