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

Plain English Breakdown

Checked against official source text during the last sync.

New Tax Rule for High Earners

This act creates a new higher tax rate for people who earn more than $1 million per year and uses the extra money raised from this tax for education, higher education, child care services, and transportation improvements.

What This Bill Does

• Adds a new tax rate of at least 4% on income over $1 million for individuals.
• Uses the extra money collected to fund education and higher education programs.
• Supports child care services with some of the funds from this new tax.
• Improves roads, bridges, and public transportation systems using part of the revenue.

Who It Names or Affects

• People who earn more than $1 million per year will pay a higher tax rate on their income over that amount.

Terms To Know

Marginal Rate

The additional percentage of tax applied to each portion of income above a certain level.

Taxable Income

The total income that is subject to taxes after deductions and allowances have been subtracted.

Limits and Unknowns

• It does not specify exactly how much money will be raised or how it will be divided among the different purposes.
• The bill has passed both chambers but needs further action before becoming law.

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.