Local taxes in Connecticut are assessed at either the state or municipality level to fund public services ranging from education to garbage collection and sewer maintenance. Local taxes come in many forms, from property and payroll taxes to sales taxes and licensing, permit and usage fees. They vary widely from one jurisdiction to the next.
Income taxes: Connecticut has a progressive tax rate with seven income tax brackets. Income tax revenues brought in $7.2 billion to the state in 2018. The latest figures reveal dramatic contrasts between what communities pay in income tax. Connecticut has collected a personal income tax since 1991. See Income Tax Tab for 2018 Top Town Contributors and 2019 tax rates.
Property taxes: This is the single largest tax bill received by most people. In Norwalk, there are a variety of different property taxes. The most commonly understood one is the residential property tax applied to homeowners. This is tax is based on 70% of the assessed value of the home. There is also a property tax on automobiles that varies based upon the value of the car and the mill rate set for that budget year.
Sales Taxes: Connecticut has a single, statewide sales tax, and no local municipal sales taxes. Regardless of where you live in the state, you will pay 6.35% on most goods and some services. This is known as a regressive tax rather than a progressive one because everyone pays the same percentage regardless of income. All sales tax revenue is sent to Hartford.
User & Permit Fees: Local and state governments charge for permit applications and a variety of user fees to help additionally fund services. Norwalk’s primary usage and permit fees are in the areas of Building Construction, Parks and Recreation and Water Sewage. They are usually flat rate fees. Click the following links to go directly to the City of Norwalk government pages.
Building Permit Fees: https://www.norwalkct.org/128/Fees
Parks & Recreation: https://www.norwalkct.org/280/Forms-Fees-Permits
Sewer Fees: http://www.wpcanorwalk.org/billing/