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 text lists 'free public colleges and universities' as a purpose for spending, but does not explicitly state that tuition will be eliminated immediately; it indicates revenue is dedicated to this goal.

HB05117: New Tax Rate on High Incomes for Public Services

This bill adds a tax of at least four percent to income over one million dollars and uses that money for schools, child care, transportation, and other public needs.

What This Bill Does

• Creates an extra personal income tax rate of at least four percent on earnings above $1,000,000.
• Requires the state to use all revenue from this new tax for specific programs.
• Funds education and universal school meals in public schools.
• Pays for building repairs, construction projects, and capital costs for schools.
• Supports higher education by making public colleges and universities free.
• Provides money for child care services, higher wages for workers, baby supplies, roads, bridges, and free public transit.

Who It Names or Affects

• Individuals with taxable income greater than one million dollars.
• Public schools and school construction projects.
• Students attending public colleges and universities.
• Families using child care services or needing baby supplies for newborn infants.

Terms To Know

Marginal rate

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

Taxable income

The total money earned by an individual after subtracting allowed deductions before taxes are calculated.

Limits and Unknowns

• The bill text does not state when this law will take effect.
• The source material lists the purposes for spending but does not specify how much money goes to each area.
• It is unclear if existing tax rates change or if only income over one million dollars faces the new rate.

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 education; universal school meals; school construction, repair, capital projects and expenditures; higher education and free public colleges and universities; child care; higher wages for child care workers; baby supplies for parents and guardians of newborn infants; the repair and maintenance of, and access to, roads, bridges and public transportation; and free public transit.

Current Bill Text

LCO No. 870 1 of 2

General Assembly Proposed Bill No. 5117
February Session, 2026 LCO No. 870

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; universal school meals; school construction, repair, capital 5
projects and expenditures; higher education and free public colleges and 6
universities; child care; higher wages for child care workers; baby 7
supplies for parents and guardians of newborn infants; the repair and 8
maintenance of, and access to, roads, bridges and public transportation; 9
and free public transit. 10
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
Proposed Bill No. 5117

LCO No. 870 2 of 2

from such tax to education; universal school meals; school construction,
repair, capital projects and expenditures; higher education and free
public colleges and universities; child care; higher wages for child care
workers; baby supplies for parents and g uardians of newborn infants;
the repair and maintenance of, and access to, roads, bridges and public
transportation; and free public transit.