Trumbull residents paid 11th most income tax in Fairfield County
When it comes to income tax — the tax paid on one’s personal income — Trumbull residents paid the 11th highest amount in Fairfield County in 2015, according the Connecticut Department of Revenue Services’ 2015 Personal Income Tax by Municipality data. That number places Trumbull below the average annual tax returns for Fairfield County, though above the state average.
Department of Revenue Services Planning Specialist and Legislative Liaison Ernest Adamo said 2016 data won’t be available until later this year.
According to the 2015 data, Trumbull residents filed 15,631 tax returns and paid a total of $80,399,259 in state income tax in 2015, representing $5,144 tax per return.
Greenwich paid the most income tax in Fairfield County at $650,278,422, and New Canaan residents, who filed 7,692 returns, paid the most tax per return at $27,471.
Here’s what all Fairfield County municipalities paid in state income tax:
- Greenwich: $650,278,422 / 26,471 returns = $24,565 tax per return.
- Stamford: $264,165,119 / 60,309 returns = $4,380 tax per return.
- New Canaan: $218,726,307 / 7,692 returns = $27,471 tax per return.
- Westport: $218,488,472 / 11,464 returns = $19,059 tax per return.
- Fairfield: $200,871,026 / 24,037 returns = $8,357 tax per return.
- Darien: $199,806,652 / 8,261 returns = $24,187 tax per return.
- Norwalk: $149,474,657 / 41,452 returns = $3,606 tax per return.
- Ridgefield: $112,915,138 / 10,107 returns = $11,172 tax per return.
- Wilton: $104,403,853 / 7,374 returns = $14,158 tax per return.
- Trumbull: $80,399,259 / 15,631 returns = $5,144 tax per return.
- Danbury: $32,729,473 / 7896 returns = $4,146 tax per return.
- Newtown: $68,645,347 / 11,621 returns = $5,097 tax per return.
- Shelton: $67,798,866 / 19,144 returns = $3,542 tax per return.
- Weston: $66,758,635 / 4,005 returns = $16,669 tax per return.
- Stratford: $63,238,824 / 24,976 returns = $2,532 tax per return.
- Bridgeport: $59,200,924 / 59,246 returns = $999 tax per return.
- Monroe: $42,105,708 / 8,743 returns = $4,816 tax per return.
- Redding: $38,950,565 / 3,873 returns = $10,057 tax per return.
- Brookfield: $32,729,473 / 7,896 returns = $4,145 tax per return.
- Easton: $31,800,534 / 3,158 returns = $10,070 tax per return.
- Bethel: $26,778,122 / 8,657 returns = $3,093 tax per return.
- New Fairfield: $20,625,961 / 6,097 returns = $3,383 tax per return.
- Sherman: $7,818,459 / 1,601 returns = $4,883 tax per return.
Statewide, Connecticut residents paid $6,573,358,994 in personal income tax in 2015, according to the revenue department’s municipal data.
According to the U.S. Census Bureau’s 2015 population estimates, Fairfield County residents made up about 26% of Connecticut’s total population that year, but paid 43% of the state’s personal income tax. In Fairfield County, a total of 408,066 returns were filed and $2,797,433,883 was paid in 2015 — representing $6,855 tax per return.
Connecticut implemented personal income tax in 1991, the initial structure of which was a 4.5% flat rate on Connecticut adjusted gross income (AGI) exceeding $12,000 for single filers and married individuals filing separately, $19,000 for heads of household and $24,000 for joint filers.
According to the Department of Revenue Services, the income tax was made “more progressive” through automatic credits that phased out at higher income levels.
In 2015, the tax rate for individuals in the second-highest income tax bracket increased to 6.9%, and a new top marginal personal income tax rate of 6.99% was created.
The current state income tax is progressively graduated with seven rates ranging from 3% to 6.99%.
Today, personal income tax is one of the biggest revenue generators for the state of Connecticut.
According to annual reports from the Department of Revenue Services, personal income tax accounted for $9.1 billion of Connecticut’s revenue in 2014-15, and $9.2 billion in 2015-16.
Adamo noted that the data in the department’s annual reports differ from its Personal Income Tax by Municipality data for several reasons.
The municipal data only includes CT-1040 resident income tax returns and excludes returns with an invalid zip code, he said, while the annual report data includes both non-resident and resident returns, CT-1065/1120SI partnership payments, and “payments made as a result of audit assessments from prior tax periods, and penalty and interest payments.”
What does the state do with the money it rakes in from personal income tax? Deposits it into the General Fund, according to Department of Revenue Services Commissioner Kevin Sullivan.
“Other than expenditures supported by the Transportation Fund and a few self-sustaining regulatory funds, state income tax deposits to the General Fund [pay for] a majority of the budgeted costs for state agency operations, state programs and services, state aid to municipalities and schools, state employee benefits, and teacher retirement, including healthcare,” said Sullivan.