HB05185 • 2026

AN ACT ESTABLISHING A CAPITAL GAINS AND DIVIDENDS SURCHARGE.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Rep. Jason Doucette, 13th Dist.
Last action: 2026-02-11
Official status: Referred to Joint Committee on Finance, Revenue and Bonding
Effective date: Not listed

Plain English Breakdown

The bill has passed both chambers but is currently referred to a committee; final enactment requires executive action not detailed in the source.

HB05185: New Surcharge for Capital Gains and Dividends

This bill adds an extra charge on profits from selling assets and dividend income for taxpayers whose Connecticut adjusted gross income meets the threshold for the highest state tax rate.

What This Bill Does

Amends Title 12 of the general statutes to establish a surcharge.
Applies the surcharge to net gains from the sale or exchange of capital assets.
Applies the surcharge to income earned from dividends.

Who It Names or Affects

Taxpayers whose Connecticut adjusted gross income is equal to or greater than the threshold for the highest marginal tax rate under section 12-700.

Limits and Unknowns

The bill text does not state the specific dollar amount or percentage rate of the surcharge.
The effective date is not listed in the provided source material.
While the bill passed both chambers, its final status depends on executive action which is not shown.

Bill History

2026-02-11 Connecticut General Assembly
Referred to Joint Committee on Finance, Revenue and Bonding

Official Summary Text

To establish a capital gains and dividends surcharge on taxpayers subject to the highest marginal personal income tax rate.

Current Bill Text

Read the full stored bill text

LCO No. 930 1 of 2

General Assembly Proposed Bill No. 5185
February Session, 2026 LCO No. 930

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
REP. DOUCETTE, 13th Dist.
REP. BIGGINS, 11th Dist.
REP. BROWN, 56th Dist.
REP. BROWN M., 127th Dist.
REP. CHAFEE, 33rd Dist.
REP. DEMICCO, 21st Dist.
REP. ELLIOTT, 88th Dist.
REP. FARRAR, 20th Dist.
REP. FORTIER, 79th Dist.
REP. GAUTHIER, 38th Dist.
REP. GILCHREST, 18th Dist.
REP. GODFREY, 110th Dist.
REP. GUCKER, 138th Dist.
REP. HEFFERNAN, 115th Dist.
REP. JOHNSON, 49th Dist.
REP. KAVROS DEGRAW, 17th Dist.
REP. KEITT, 134th Dist.
REP. KHAN, 5th Dist.
REP. LEMAR, 96th Dist.
REP. LUXENBERG, 12th Dist.
REP. MARTINEZ, 22nd Dist.
REP. MENAPACE, 37th Dist.
REP. MCGEE T., 116th Dist.
REP. MORRIN BELLO, 28th Dist.
REP. NOLAN, 39th Dist.
REP. PARIS, 145th Dist.
REP. ROCHELLE, 104th Dist.
REP. SHAKE, 120th Dist.
REP. SHANNON, 117th Dist.
REP. SIMMS, 140th Dist.
SEN. SLAP, 5th Dist.
REP. SWEET, 91st Dist.
REP. TURCO, 27th Dist.
REP. WINTER, 94th Dist.

AN ACT ESTABLISHING A CAPITAL GAINS AND DIVIDENDS
SURCHARGE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That title 12 of the general statutes be amended to establish a 1
surcharge on the net gain from the sale or exchange of capital assets and 2
Proposed Bill No. 5185

LCO No. 930 2 of 2

the income from dividends, for a taxpayer whose Connecticut adjusted 3
gross income is equal to or greater than the threshold amount specified 4
in section 12 -700 of the general statutes for imposition of the highest 5
marginal rate on such taxpayer. 6
Statement of Purpose:
To establish a capital gains and dividends surcharge on taxpayers
subject to the highest marginal personal income tax rate.