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Rental income is taxed very similarly to regular income, and tax rates will vary based on the specific property.
Tourism Surcharge A surcharge of $1 per day or portion of a day is imposed on every lessor for the rental or lease of a passenger motor vehicle delivered to a lessee in Connecticut (regardless of where the vehicle is subsequently used) for a term of 30 consecutive calendar days or less.
The sales tax is a levy imposed on the sale, rental or lease of most goods and certain services at a rate of 6%.
As a landlord, you pay tax on your net rental income, which means your total income minus any allowable expenses.
These exceptions include certain groceries, some clothing, safety gear like firearm locks, child car seats and bike helmets, compact fluorescent bulbs, college textbooks, medical equipment and certain motor vehicles. Click here for more about tax exempt goods in Connecticut.
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Tips on How to Reduce Tax on Rental Income Recent tax changes for landlords. Claiming all expenses. Creating Joint Ownership. Form a limited company. Reducing through Extending. Short-term Tenants. Utilizing all available tax-bands. Utilize mortgage interest by changing to an offset buy-to-let mortgage.

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