OP-383 Rental Surcharge Annual Report - CTgov - cultureandtourism 2025

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In addition to federal taxes, rental income may be subject to state and local taxes, varying based on property location and jurisdiction. Some states, like California, impose progressive income tax systems with rates ranging from 1% to 13.3%, contingent upon income level and filing status.
Also exempt are: Food products, including meals, sold through coin-operated vending machines. Meals delivered to persons who are sixty years of age or older, have physical disabilities or are otherwise homebound. Purchases made with supplemental nutrition assistance program benefits.
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.
Rental income is considered taxable income and must be reported on your tax return. If unreported it can lead to penalties and interest, audits, criminal charges, or in extreme cases liens and levies.
For real estate owners of apartment buildings, rental homes, or even individual rental units, they must report rental income on Form 1040, Schedule E.
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People also ask

Connecticut generally does charge sales tax on the rental or lease of tangible personal property unless a specific exemption applies.
The owner of the property is responsible for property taxes. It is one of the reasons that the cost of rent increases every year.

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