Hartford Connecticut Effective Tax Study

A comprehensive tax analysis conducted by the MetroHartford Alliance and CohnReznick compares the Hartford Region and Connecticut with peer and competitive markets.

The study demonstrates Hartford boasts the second lowest total tax and office lease costs for insurance companies. Hartford also has the lowest costs for general Class A office users. This unique cost advantage makes Hartford an attractive destination for businesses, particularly early-stage Insurtech and Fintech companies aiming to manage expenses and provide value to their investors.

Insurance Capital of the World

Hartford’s unique designation as “The Insurance Capital of the World” is further underscored by its commitment to embracing emerging technologies and adapting to industry shifts. The city has seen a surge in Insurtech startups from around the globe that are revolutionizing traditional insurance models through cutting-edge digital solutions. This blend of historical expertise and modern innovation has cemented Hartford’s status as a dynamic ecosystem that nurtures both tradition and transformation.

Key Findings

The combined annual Tax and Lease Cost for a Non-Insurance/ General Class A office user in:

  • Hartford - $1 million

  • Austin – $1.5 million

  • Boston – $2.3 million

  • NYC – $2.6 million

Source: MHA – CohnReznick Analysis, 2023

Hartford: The Smart Choice for Affordable Office Space

Hartford, Connecticut, boasts some of the most affordable Class A office rental costs in the region at just $22.54 per square foot. This value stands in stark contrast to skyrocketing prices in nearby markets like New York City, making Hartford an ideal location for businesses looking to maximize their investment.

Hartford & Connecticut Punch Above Their Weight

Hartford and Connecticut exceeded expectations on the economic front. The state, alongside its various cities and towns, stands out for hosting a considerable number of corporate headquarters, including 14 Fortune 500 companies.

Notably, the state holds a prominent position in the Insurance and Financial Services sector. As indicated by the 2023 Best State Rankings by US News and World Report, Connecticut achieved the sixth highest ranking for its business environment and an overall 16th best state ranking.

Mid-Sized Powerhouse

In terms of economic impact, Hartford, and Connecticut, though mid-sized, wield substantial influence. The comparison drawn in the analysis places them against larger markets in the United States, which have larger physical footprints and more extensive populations. These chosen markets are key competitors for business locations and headquarters placements.

Hartford: Affordable Living in the Northeast

Hartford offers a cost of living that is significantly more affordable than other major cities. Compared to Boston, New York City, and even Austin, TX, Hartford stands out as an excellent choice for cost-conscious professionals and families. With a cost of living 64.4% lower than Boston and 137.4% lower than Manhattan, Hartford is a smart, economical place to live and work.

Hartford Connecticut Effective Tax Study

A comprehensive tax analysis conducted by the MetroHartford Alliance and CohnReznick compares the Hartford Region and Connecticut with peer and competitive markets.

Interested in Hartford?

Fill out this form or use the information below to contact Gene Goddard, Chief Business Investment Officer at the MetroHartford Alliance.

Gene Goddard
Chief Business Investment Officer
ggoddard@metrohartford.com
860.525.4451 ext. 281