AN ACT ESTABLISHING AN ADDITIONAL MARGINAL RATE FOR THE PERSONAL INCOME TAX AND DEDICATING THE REVENUE GENERATED TO CERTAIN PURPOSES.

Plain English Breakdown

The official status shows the bill passed both chambers but was referred to a committee on February 9, 2026; no effective date is listed in the provided text.

New Tax Rate for High Earners

This bill adds a new personal income tax rate of at least four percent on earnings over one million dollars and sets aside the money collected for schools, roads, child care, and public transportation.

What This Bill Does

• Creates an extra marginal tax rate of at least four percent.
• Applies this rate only to taxable income above one million dollars per person.
• Requires that all revenue from this new tax goes to specific state programs.
• Directs funds toward education and higher education costs.
• Allocates money for child care services.
• Uses the collected taxes for repairing roads, bridges, public transportation, and access to them.

Who It Names or Affects

• Individuals with taxable income greater than one million dollars
• State agencies managing education programs
• Agencies responsible for road, bridge, and public transportation maintenance
• Organizations providing child care services

Terms To Know

Marginal rate

A tax percentage that applies only to the part of income above a certain amount, not the entire income.

Taxable income

The total money earned by an individual after subtracting allowed deductions and exemptions.

Limits and Unknowns

• The bill does not state when this tax will officially begin.
• The text says the rate is 'at least' four percent, so it could be higher if other laws apply.
• The source does not explain how much money each specific program will receive.

Official Summary Text

To (1) establish an additional marginal rate for the personal income tax of at least four per cent on the portion of an individual's taxable income in excess of one million dollars, and (2) dedicate the revenue generated from such tax to certain purposes.

Current Bill Text

LCO No. 702 1 of 1

General Assembly Proposed Bill No. 5081
February Session, 2026 LCO No. 702

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
REP. GAUTHIER, 38th Dist.

AN ACT ESTABLISHING AN ADDITIONAL MARGINAL RATE FOR THE
PERSONAL INCOME TAX AND DEDICATING THE REVENUE
GENERATED TO CERTAIN PURPOSES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That chapter 229 of the general statutes be amended to (1) establish 1
an additional marginal rate for the personal income tax of at least four 2
per cent on the portion of an individual's taxable income in excess of one 3
million dollars, and (2) dedicate the revenue generated from such tax to 4
education, higher education, child care and the repair and maintenance 5
of, and access to, roads, bridges and public transportation. 6
Statement of Purpose:
To (1) establish an additional marginal rate for the personal income tax
of at least four per cent on the portion of an individual's taxable income
in excess of one million dollars, and (2) dedicate the revenue generated
from such tax to certain purposes.