Historic Tax Cuts Part of State BudgetMay 4, 2022
With families struggling and Connecticut's finances in the black, House Democrats led the way in the legislature passing one of the largest tax cuts in state history.
Budget adjustments for the upcoming fiscal year include $600 million in tax cuts for Connecticut residents. This includes historic tax relief for parents, retirees, workers, and property owners.
The new budget plan reduces taxes by:
- Exempting pension and annuities from state income taxes for retirees
- Lowering local property taxes on homes and cars
- Extending tax cuts for workers in low-paying jobs by increasing the Earned Income Tax Credit (EITC)
- Creating a new state tax credit for childcare
- Extending the 25-cent gas tax cut until December
- Establishing a state child tax credit worth $250 per child
In addition to this historic tax relief package, the spending side of this budget makes groundbreaking investments in children’s mental health, increases funding in juvenile justice and anti-crime programs, leverages new federal funding for important programs, and invests in childcare, education, and our workforce.
Connecticut is one of the best states to live, work and raise a family. With these tax cuts and investments in the future, living in our great state is becoming even better.