Dear Neighbor,
As a result of fiscal responsibility and bipartisanship in 2023, significant relief is on the way for many Connecticut taxpayers in 2024!
Three tax relief measures went into effect on January 1, including the largest income tax cut in state history, an increase in a tax credit aimed at the lowest-income workers, and an expansion of exemptions on certain pension and annuity earnings that will benefit the senior population.
Here's a closer look at the tax cuts, who specifically benefits, and how:
One million filers to benefit from income tax cuts:
The changes enacted in 2024 will see a decrease in the two lowest rates:
- The 3% rate on the first $10,000 earned by single filers and the first $20,000 by joint filers will drop to 2%.
- The 5% rate on the next $40,000 earned by single filers and the next $80,000 by joint filers will drop to 4.5%.
The relief targets middle-class tax filers and is capped at $150,000 for single filers and $300,000 for joint filers. This is the first time that rates have been reduced in the state since the mid-1990s and it represents the largest income tax cut enacted in state history. |