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.
The combined annual Tax and Lease Cost for a Non-Insurance/ General Class A office user in Hartford was $1 million.
Austin – $1.5 million
Boston – $2.3 million
NYC – $2.6 million
Source: MHA – CohnReznick Analysis, 2023
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.
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’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
Effective Business Tax Rate Analysis – 2023 Update
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.
© 2023 MetroHartford Alliance