Budget & Taxes (Income Tax)

in committee · Connecticut · Senate Feb 4, 2026

SB 70: AN ACT EXEMPTING SOCIAL SECURITY BENEFITS AND PENSION OR ANNUITY INCOME FROM THE PERSONAL INCOME TAX.

SB 70 would exempt all Social Security benefits and pension or annuity income from state personal income tax for every taxpayer. This policy change directly affects residents receiving these income types, removing them from the taxable base. The bill amends Section 12-701 of the general statutes to implement this universal exemption. It creates a concrete tax relief measure without altering other income tax provisions.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts Social Security/pension income from state income tax, providing direct tax relief to recipients, aligning with support indicators for tax relief measures.95% confidence

Sub-Topics Income Tax Pensions Sales Tax

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in committee · Connecticut · House Mar 24, 2026

HB 5296: AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR NATIONAL GUARD STATE ACTIVE DUTY PAY.

HB 5296 creates a new personal income tax deduction for Connecticut National Guard members who serve on active duty. The bill modifies Connecticut's tax code to allow these service members to subtract their active duty pay from their taxable income, reducing their state tax burden. This deduction applies to taxable years beginning January 1, 2026, and affects National Guard members whose active duty pay would otherwise be subject to state income tax. The policy change directly benefits Connecticut's National Guard personnel by providing tax relief for their active duty compensation.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for National Guard members, reducing state tax burden - direct tax relief aligning with support indicators.95% confidence ✓ VeteransSupports VeteransBill creates tax deduction for National Guard active duty pay, directly reducing tax burden for veterans serving in National Guard, expanding financial benefits.95% confidence

Sub-Topics Income Tax National Guard & Reserve

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in committee · Connecticut · Senate Feb 11, 2026

SB 183: AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR CERTAIN GAMBLING LOSSES.

SB 183 would allow individual taxpayers to deduct gambling losses from their taxable income when they report gambling winnings. This directly affects people who gamble and have taxable winnings, such as those who win money at casinos, lotteries, or sports betting. The bill establishes a mechanism where losses can be subtracted from winnings to reduce the overall tax liability, meaning taxpayers would only pay income tax on their net gambling profit (winnings minus losses). The bill does not change the tax treatment of gambling winnings themselves, only allowing losses to offset those winnings for tax purposes.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill allows tax deduction for gambling losses, reducing taxable income and providing tax relief for affected taxpayers.90% confidence

Sub-Topics Income Tax

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in committee · Connecticut · Senate Feb 4, 2026

SB 54: AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR COLLEGE TUITION PAYMENTS MADE BY A TAXPAYER.

SB 54 would allow taxpayers to reduce their taxable income by the amount paid for college tuition. It directly affects individuals who pay tuition for themselves or their dependents at eligible educational institutions. The bill creates a specific tax deduction under the state's income tax code, lowering the taxable income for qualifying tuition payments. This policy change would provide a direct financial benefit to taxpayers covering college costs, without altering tax rates or creating new tax credits.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides direct tax relief for college tuition expenses, reducing taxable income for qualifying taxpayers per bill's intent to lower tax burden on education costs.95% confidence ✓ EducationSupports EducationProvides tax deduction for college tuition, reducing costs for students and expanding access to higher education95% confidence

Sub-Topics Income Tax Higher Education Student Financial Aid

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in committee · Connecticut · House Feb 4, 2026

HB 5016: AN ACT INCREASING THE AMOUNT OF THE PERSONAL INCOME TAX DEDUCTION FOR CONTRIBUTIONS TO STATE-ESTABLISHED 529 QUALIFIED STATE TUITION PROGRAMS.

HB 5016 increases the state personal income tax deduction for contributions to state-established 529 college savings plans. It doubles the deduction limit from $5,000 to $10,000 for individual filers and from $10,000 to $20,000 for married couples filing jointly. The bill directly affects taxpayers who contribute to these state-run college savings accounts, reducing their taxable income by the increased amount. This change applies specifically to contributions made to the state's own 529 programs, not federal 529 plans.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax deductions for college savings, providing direct tax relief to contributors through higher state income tax deductions.90% confidence ✓ EducationSupports EducationDoubles tax deduction for 529 college savings plans, directly increasing financial incentives for higher education savings and access.95% confidence

Sub-Topics Income Tax Higher Education

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in committee · Connecticut · House Feb 6, 2026

HB 5051: AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR TIPS OR GRATUITIES AND OVERTIME PAY.

HB 5051 would allow Connecticut taxpayers to deduct tips or gratuities and overtime pay from their state personal income tax, but only for amounts already deductible on federal income tax returns. This directly affects service industry workers (like servers or hospitality staff) and employees who regularly earn overtime, potentially reducing their state tax burden. The bill’s key mechanism is aligning Connecticut’s tax deduction with federal tax rules, meaning the state would mirror the federal treatment of these income types. It does not create new deductions but expands existing federal-eligible deductions to state tax filings. The bill is sponsored by Representatives Carney, Pavalock-D’Amato, Polletta, and Vail.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for service workers' tips/overtime, reducing state tax burden for lower/middle income earners.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentReduces tax burden for service workers and overtime earners by allowing state tax deduction mirroring federal rules, increasing take-home pay.90% confidence

Sub-Topics Income Tax Labor Standards

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passed · Connecticut · Senate Apr 23, 2026

SB 373: AN ACT ALLOWING A PERSONAL INCOME TAX DEDUCTION FOR STIPENDS PAID TO VOLUNTEER FIREFIGHTERS, VOLUNTEER FIRE POLICE OFFICERS AND VOLUNTEER AMBULANCE MEMBERS.

SB 373 would allow volunteer firefighters, volunteer fire police officers, and volunteer ambulance members in Connecticut to deduct stipends they receive for their service from their state personal income tax. The bill amends the state tax code to add these stipends as a deductible expense, effective January 1, 2027. This change directly affects individuals who serve on volunteer emergency response teams and receive monetary stipends for their work. The provision aligns with existing tax deductions for certain income types but specifically targets volunteer emergency service compensation. It does not change federal tax treatment of these stipends.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllows tax deduction for volunteer stipends, reducing taxable income for emergency responders - direct tax relief for lower-income service providers.95% confidence

Sub-Topics Income Tax

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in committee · Connecticut · Senate Feb 20, 2026

SB 100: AN ACT REDUCING CERTAIN PERSONAL INCOME TAX MARGINAL RATES.

SB 100 reduces the two lowest personal income tax rates for eligible taxpayers. It eliminates the 2% tax rate for single filers earning under $100,000 annually and lowers the 4.5% rate to 3% for those in that bracket. Similarly, it removes the 2% rate for married couples filing jointly earning under $200,000 and reduces the 4.5% rate to 3% for them. The bill directly affects low-to-moderate income earners by decreasing their tax burden on the lowest income levels. These changes apply to taxable income falling within the specified thresholds under the state's income tax code.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces tax rates for low-to-moderate income earners, providing direct tax relief as explicitly stated in the bill's summary.95% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Connecticut · Senate Feb 20, 2026

SB 114: AN ACT ELIMINATING THE QUALIFYING INCOME THRESHOLDS FOR THE PERSONAL INCOME TAX DEDUCTIONS FOR SOCIAL SECURITY BENEFITS.

SB 114 eliminates income limits that currently restrict who can deduct Social Security benefits from their state personal income tax. It directly affects all Social Security benefit recipients in the state who pay income tax, removing the previous requirement that their total income must fall below specific thresholds to qualify for the deduction. The bill amends Section 12-701 of the general statutes to remove these qualifying income thresholds entirely. This change means anyone receiving Social Security benefits would automatically qualify for the tax deduction regardless of their total income level. The policy change simplifies the deduction process for eligible taxpayers without altering the deduction amount itself.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates income limits for Social Security tax deduction, providing tax relief to more recipients by expanding eligibility.95% confidence ✓ VeteransSupports VeteransRemoves income limits on Social Security tax deductions, directly benefiting veterans who receive Social Security benefits as a primary income source.85% confidence

Sub-Topics Income Tax

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in committee · Connecticut · House Feb 10, 2026

HB 5103: AN ACT INCREASING THE AMOUNT OF THE PERSONAL INCOME TAX DEDUCTION FOR CONTRIBUTIONS TO 529 QUALIFIED STATE TUITION PROGRAMS.

HB 5103 increases the personal income tax deduction for contributions to state-run 529 college savings plans from $5,000 to $15,000 annually for individual taxpayers. The bill directly affects residents who contribute to Connecticut's 529 tuition programs, allowing them to reduce taxable income by a larger amount. Key provision: it amends the tax code to raise the deduction limit without changing eligibility rules for the state's 529 plans. This is a concrete policy change to enhance tax benefits for college savings, not a procedural measure. The bill aims to make saving for education more financially accessible for Connecticut taxpayers.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax deduction for 529 contributions, providing direct tax relief to individual taxpayers saving for education.95% confidence ✓ EducationSupports EducationIncreases tax deduction for 529 college savings, enhancing higher education access and affordability through direct financial incentive to families.95% confidence

Sub-Topics Income Tax Higher Education

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