Anabel Figueroa

As a result of fiscal responsibility and bipartisanship in 2023, I am pleased to announce that 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.

For more information, single filers click here. For joint filers, click here.

Connecticut’s Earned Income Tax Credit (EITC) for low-income workers becomes one of the largest in the U.S.

The EITC in Connecticut is increasing from 30.5% to 40% of the federal EITC and will provide an additional $44.6 million in state tax credits to the approximately 211,000 low-income filers who receive the credit. More than 95% of filers who receive this credit are families with children.

The Connecticut EITC is a refundable state income tax credit for the lowest income working individuals and families that mirrors the federal EITC.

Expanding certain deductions for IRA distributions and pension and annuity earnings for seniors

The state budget eliminates the retirement income tax cliff by adding a phase-out for allowable pension annuity and IRA distribution deductions against the personal income tax.

Approximately 200,000 filers benefit from the currently enacted retiree exemption limits. It is estimated that with these changes, an additional 100,000 filers could benefit from the elimination of the retirement cliff via the exemption phase-out.

This increase was made possible thanks to legislation passed in 2019, which implemented five incremental increases in the minimum wage between 2019 and 2023, followed by future adjustments that are tied to the percentage change in the federal employment cost index.

Beginning on January 1, 2024, and occurring annually each January 1, the state’s minimum wage will be adjusted according to the U.S. Department of Labor’s calculation of the employment cost index for the 12-month period ending on June 30 of the preceding year. The law requires the Connecticut Department of Labor to review this percentage change and then announce any adjustments by October 15 of each year. The minimum wage adjustments become effective on the next January 1.

Providing livable wages to the lowest-earning workers is a step in the right direction to help them make ends meet and provide for their families. This increase not only assists hard-working Connecticut families, but it can spur local economies by putting more money in people's pockets, which drives up spending power and makes it easier to pay household bills. Approximately 60% of minimum-wage earners in Connecticut are women, according to the Current Population Survey, calculated by the US. Census Bureau and U.S. Bureau of Labor Statistics.

Everyone deserves the opportunity to support themselves by earning a livable wage through their work, but too many are not able to do so. This change won't eliminate that problem, but it is a small step in the right direction.

Crews will be upgrading the pavement on I-95 in both directions between exits 2 and 6 in Stamford and Greenwich. Drivers can expect to see crews and lane closures starting on April 1, but there may be some work before then.

The project includes adding new, more durable pavement and milling. Crews will replace traffic and signal loops on ramps, catch basin tops, small traffic signs with no foundations, and pavement markings.

The $61 million project is expected to be finished by November 30, 2025.