Updated October 5, 2026. Quick answer: Yes. Connecticut has a gift tax. The Department of Revenue Services says “The Connecticut gift tax applies to Connecticut taxable gifts”, which are federal taxable gifts made by a resident or nonresident on or after January 1, 2005. For 2026 the amount of such gifts exempt from the tax is $15 million in the aggregate, and the Department’s table says the tax above that is “12% of the excess over the federal basic exclusion amount”. The federal annual exclusion is $19,000 per recipient for 2026.
Putting a loan in writing? The interest limit, the signing rules and the time limit to sue, from the state’s own statutes: Connecticut promissory note.
Connecticut gift tax at a glance
| Item | What the documents say |
|---|---|
| State gift tax | Yes |
| What the documents say | A gift tax applies to Connecticut taxable gifts made on or after January 1, 2005; none is due until the aggregate passes $15 million (2026) |
| State estate or inheritance tax | Yes: a Connecticut estate tax, with a 2026 exemption of $15 million, under the same Form CT-706/709 |
| Gifts made close to death | The estate tax base includes the aggregate of all Connecticut taxable gifts made since January 1, 2005 |
| Federal annual exclusion, 2026 | $19,000 per recipient |
| Federal basic exclusion amount, 2026 | $15,000,000 |
| Source | Connecticut Department of Revenue Services; IRS Revenue Procedure 2025-32 |
What Connecticut’s gift tax covers
The Department’s Estate and Gift Tax Information page says that for Connecticut taxable gifts made on or after January 1, 2026, and the aggregate of all Connecticut taxable gifts made in calendar years beginning on or after January 1, 2005, the exempt amount is $15 million. The same page says “gift and estate tax payable shall not exceed $15 million” for calendar years beginning on or after January 1, 2019.
The annual exclusion works the way it does federally: “the same first $19,000 of gifts to a donee” that was excluded for federal gift tax purposes is excluded for Connecticut, provided those gifts are ones to which the Connecticut gift tax applies.
The return is Form CT-706/709, the Connecticut Estate and Gift Tax Return. It is an annual return that covers the whole calendar year, and the Department says to file the 2026 return “on or before April 15, 2027”. The filer attaches a copy of the completed federal Form 709.
A worked illustration for Connecticut
An illustration, not a return: suppose a Connecticut resident’s aggregate Connecticut taxable gifts since January 1, 2005 reach $16,000,000. That is $1,000,000 over the $15,000,000 line, and the table’s rule is 12% of the excess over the federal basic exclusion amount, which is $15,000,000 for 2026. On that rule alone the tax would be $120,000. The return itself applies the credit for gift taxes paid on earlier years’ gifts and the $15 million cap, so the Department’s Form CT-706/709 decides the real number.
What applies to a gift from a Connecticut resident
Federal gift tax is separate and applies wherever you live. The IRS says gifts “not more than the annual exclusion for the calendar year” are generally not taxable gifts, and Revenue Procedure 2025-32 sets the 2026 annual exclusion at “the first $19,000 of gifts to any person”. The same procedure puts the basic exclusion amount at “$15,000,000 for calendar year 2026”. The IRS adds that “The donor is generally responsible for paying the gift tax”.
An illustration: a $50,000 gift to one child in 2026 is $31,000 above the federal annual exclusion, and in Connecticut the gift is also measured against the state’s own $15,000,000 aggregate. CMG’s gift tax limit and Form 709 who must file pages explain the federal side, and how Connecticut taxes 401(k) and IRA withdrawals covers a gift of retirement money.
What the documents do not say
- The Department’s pages read name no statute section for the gift tax, so this page cites the Department and its return instructions, not a section number.
Common mistakes
- Assuming a gift under the federal $15,000,000 exemption cannot trigger Connecticut tax; the Connecticut figure is a separate aggregate that includes only gifts to which the Connecticut tax applies.
- Skipping Form CT-706/709 in a year with gifts above the annual exclusion; the Department calls it an annual return covering all donees.
- Assuming the state answer settles the federal one, or the answer for a gift of property located in another state.
Related: the federal gift tax limit, gift tax by state, Connecticut estate tax, and Connecticut probate cost.
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Answer againSources
- Estate and Gift Tax Information: https://portal.ct.gov/drs/individuals/individual-income-tax-portal/estate-and-gift-taxes/tax-information
- Form CT-706/709 Line Instructions (Rev. 06/26): https://portal.ct.gov/-/media/drs/forms/2026/gifttax/ct-706-709-line-instructions_0626.pdf
- Revenue Procedure 2025-32 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
- Frequently asked questions on gift taxes (Internal Revenue Service): https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes
Sources: the primary documents linked above, read on October 5, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.