2025 Federal and Connecticut Estate Tax and Gift Tax
The federal estate tax exemption for 2025 is $13,990,000, an increase of $380,000 from 2024. If a decedent’s taxable estate exceeds this amount, the excess will be taxed at a flat rate of 40%. For married couples, the exemption can total $27,980,000 in 2025 because the surviving spouse can file a federal estate tax return to elect “portability” to transfer any unused portion of the deceased spouse’s exemption to the surviving spouse.
The Connecticut estate tax exemption is also $13,990,000, an increase of $380,000 from 2024. The Connecticut exemption will continue to match the federal estate tax exemption for the foreseeable future. Connecticut currently does not offer the portability election. If a decedent’s taxable estate exceeds the exemption amount, the excess is taxed as a flat rate of 12%. The Connecticut estate tax is deductible for federal estate tax purposes, which reduces the effective rate of the Connecticut estate tax by 40%.
