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Connecticut

A guide to help you understand the ins and outs of business in Connecticut

Overview

Connecticut is a state located on the Northeast coast of the US in the New England region. Connecticut's capital is Hartford and its largest city is Bridgeport. Connecticut remains the third smallest state in land mass but has the 29th largest population at an estimated 3.70 million residents. Connecticut is well-known for its location being in very close proximity to New York City, with many residents of Connecticut commuting there on a daily basis. The state's Gross Domestic Product is $294,000,000,000.

Connecticut's top industries are anchored by finance, advanced manufacturing, and healthcare.

In 2026, Connecticut imported $1,620,000 from Qatar, with primary commodities consisting of raw aluminum, refined petroleum, and specialized chemical components. Meanwhile, Connecticut exported $74,780,000 to Qatar, driven largely by sustained high-value shipments of aerospace defense components, aircraft parts, industrial machinery, mechanical boilers, and electrical equipment or audio/visual gear.

Connecticut features a base corporate income tax rate of 7.5%, but imposes an additional 10% surtax on that liability for businesses with $100 million or more in annual gross income, resulting in a top effective rate of 8.25%. The state operates four distinct foreign trade zones to optimize global customs, located in Windsor Locks (serving the Hartford region), Bridgeport, New Haven, and New London. Despite its small geographic footprint, Connecticut remains highly competitive by providing a robust portfolio of corporate tax incentives managed by the Department of Economic and Community Development, which includes flagship programs like the Fixed Capital Investment tax credit, the Urban and Industrial Site Reinvestment credit, and specialized 80% local property tax exemptions within designated Enterprise Zones.

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