AN ACT CONCERNING THE INDEXING OF CERTAIN PERSONAL INCOME TAX THRESHOLDS AND EXEMPTION AMOUNTS.

House of Representatives
sHB5444 / File No. 667 1

General Assembly File No. 667
February Session, 2026 Substitute House Bill No. 5444

House of Representatives, April 16, 2026

The Committee on Finance, Revenue and Bonding reported
through REP. HORN of the 64th Dist., Chairperson of the
Committee on the part of the House, that the substitute bill
ought to pass.

AN ACT CONCERNING THE INDEXING OF CERTAIN PERSONAL
INCOME TAX THRESHOLDS AND EXEMPTION AMOUNTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Subsection (a) of section 12 -700 of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective October 2
1, 2026): 3
(a) There is hereby imposed on the Connecticut taxable income of 4
each resident of this state a tax: 5
(1) At the rate of four and one -half per cent of such Connecticut 6
taxable income for taxable years commencing on or after January 1, 7
1992, and prior to January 1, 1996. 8
(2) For taxable years commencing on or after January 1, 1996, but 9
prior to January 1, 1997, in accordance with the following schedule: 10
(A) For any person who files a return under the federal income tax 11
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for such taxable year as an unmarried individual or as a married 12
individual filing separately: 13
T1 Connecticut Taxable Income Rate of Tax
T2 Not over $2,250 3.0%
T3 Over $2,250 $67.50, plus 4.5% of the
T4 excess over $2,250

(B) For any person who files a return under the federal income tax for 14
such taxable year as a head of household, as defined in Section 2(b) of 15
the Internal Revenue Code: 16
T5 Connecticut Taxable Income Rate of Tax
T6 Not over $3,500 3.0%
T7 Over $3,500 $105.00, plus 4.5% of the
T8 excess over $3,500

(C) For any husband and wife who file a return under the federal 17
income tax for such taxable year as married individuals filing jointly or 18
a person who files a return under the federal income tax as a surviving 19
spouse, as defined in Section 2(a) of the Internal Revenue Code: 20
T9 Connecticut Taxable Income Rate of Tax
T10 Not over $4,500 3.0%
T11 Over $4,500 $135.00, plus 4.5% of the
T12 excess over $4,500

(D) For trusts or estates, the rate of tax shall be 4.5% of their 21
Connecticut taxable income. 22
(3) For taxable years commencing on or after January 1, 1997, but 23
prior to January 1, 1998, in accordance with the following schedule: 24
(A) For any person who files a return under the federal income tax 25
for such taxable year as an unmarried individual or as a married 26
individual filing separately: 27
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T13 Connecticut Taxable Income Rate of Tax
T14 Not over $6,250 3.0%
T15 Over $6,250 $187.50, plus 4.5% of the
T16 excess over $6,250

(B) For any person who files a return under the federal income tax for 28
such taxable year as a head of household, as defined in Section 2(b) of 29
the Internal Revenue Code: 30
T17 Connecticut Taxable Income Rate of Tax
T18 Not over $10,000 3.0%
T19 Over $10,000 $300.00, plus 4.5% of the
T20 excess over $10,000

(C) For any husband and wife who file a return under the federal 31
income tax for such taxable year as married individuals filing jointly or 32
any person who files a return under the federal income tax for such 33
taxable year as a surviving spouse, as defined in Section 2(a) of the 34
Internal Revenue Code: 35
T21 Connecticut Taxable Income Rate of Tax
T22 Not over $12,500 3.0%
T23 Over $12,500 $375.00, plus 4.5% of the
T24 excess over $12,500

(D) For trusts or estates, the rate of tax shall be 4.5% of their 36
Connecticut taxable income. 37
(4) For taxable years commencing on or after January 1, 1998, but 38
prior to January 1, 1999, in accordance with the following schedule: 39
(A) For any person who files a return under the federal income tax 40
for such taxable year as an unmarried individual or as a married 41
individual filing separately: 42
T25 Connecticut Taxable Income Rate of Tax
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T26 Not over $7,500 3.0%
T27 Over $7,500 $225.00, plus 4.5% of the
T28 excess over $7,500

(B) For any person who files a return under the federal income tax for 43
such taxable year as a head of household, as defined in Section 2(b) of 44
the Internal Revenue Code: 45
T29 Connecticut Taxable Income Rate of Tax
T30 Not over $12,000 3.0%
T31 Over $12,000 $360.00, plus 4.5% of the
T32 excess over $12,000

(C) For any husband and wife who file a return under the federal 46
income tax for such taxable year as married individuals filing jointly or 47
any person who files a return under the federal income tax for such 48
taxable year as a surviving spouse, as defined in Section 2(a) of the 49
Internal Revenue Code: 50
T33 Connecticut Taxable Income Rate of Tax
T34 Not over $15,000 3.0%
T35 Over $15,000 $450.00, plus 4.5% of the
T36 excess over $15,000

(D) For trusts or estates, the rate of tax shall be 4.5% of their 51
Connecticut taxable income. 52
(5) For taxable years commencing on or after January 1, 1999, but 53
prior to January 1, 2003, in accordance with the following schedule: 54
(A) For any person who files a return under the federal income tax 55
for such taxable year as an unmarried individual or as a married 56
individual filing separately: 57
T37 Connecticut Taxable Income Rate of Tax
T38 Not over $10,000 3.0%
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T39 Over $10,000 $300.00, plus 4.5% of the
T40 excess over $10,000

(B) For any person who files a return under the federal income tax for 58
such taxable year as a head of household, as defined in Section 2(b) of 59
the Internal Revenue Code: 60
T41 Connecticut Taxable Income Rate of Tax
T42 Not over $16,000 3.0%
T43 Over $16,000 $480.00, plus 4.5% of the
T44 excess over $16,000

(C) For any husband and wife who file a return under the federal 61
income tax for such taxable year as married individuals filing jointly or 62
any person who files a return under the federal income tax for such 63
taxable year as a surviving spouse, as defined in Section 2(a) of the 64
Internal Revenue Code: 65
T45 Connecticut Taxable Income Rate of Tax
T46 Not over $20,000 3.0%
T47 Over $20,000 $600.00, plus 4.5% of the
T48 excess over $20,000

(D) For trusts or estates, the rate of tax shall be 4.5% of their 66
Connecticut taxable income. 67
(6) For taxable years commencing on or after January 1, 2003, but 68
prior to January 1, 2009, in accordance with the following schedule: 69
(A) For any person who files a return under the federal income tax 70
for such taxable year as an unmarried individual or as a married 71
individual filing separately: 72
T49 Connecticut Taxable Income Rate of Tax
T50 Not over $10,000 3.0%
T51 Over $10,000 $300.00, plus 5.0% of the
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sHB5444 / File No. 667 6

T52 excess over $10,000

(B) For any person who files a return under the federal income tax for 73
such taxable year as a head of household, as defined in Section 2(b) of 74
the Internal Revenue Code: 75
T53 Connecticut Taxable Income Rate of Tax
T54 Not over $16,000 3.0%
T55 Over $16,000 $480.00, plus 5.0% of the
T56 excess over $16,000

(C) For any husband and wife who file a return under the federal 76
income tax for such taxable year as married individuals filing jointly or 77
any person who files a return under the federal income tax for such 78
taxable year as a surviving spouse, as defined in Section 2(a) of the 79
Internal Revenue Code: 80
T57 Connecticut Taxable Income Rate of Tax
T58 Not over $20,000 3.0%
T59 Over $20,000 $600.00, plus 5.0% of the
T60 excess over $20,000

(D) For trusts or estates, the rate of tax shall be 5.0% of the 81
Connecticut taxable income. 82
(7) For taxable years commencing on or after January 1, 2009, but 83
prior to January 1, 2011, in accordance with the following schedule: 84
(A) For any person who files a return under the federal income tax 85
for such taxable year as an unmarried individual: 86
T61 Connecticut Taxable Income Rate of Tax
T62 Not over $10,000 3.0%
T63 Over $10,000 but not $300.00, plus 5.0% of the
T64 over $500,000 excess over $10,000
T65 Over $500,000 $24,800, plus 6.5% of the
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sHB5444 / File No. 667 7

T66 excess over $500,000

(B) For any person who files a return under the federal income tax for 87
such taxable year as a head of household, as defined in Section 2(b) of 88
the Internal Revenue Code: 89
T67 Connecticut Taxable Income Rate of Tax
T68 Not over $16,000 3.0%
T69 Over $16,000 but not $480.00, plus 5.0% of the
T70 over $800,000 excess over $16,000
T71 Over $800,000 $39,680, plus 6.5% of the
T72 excess over $800,000

(C) For any husband and wife who file a return under the federal 90
income tax for such taxable year as married individuals filing jointly or 91
any person who files a return under the federal income tax for such 92
taxable year as a surviving spouse, as defined in Section 2(a) of the 93
Internal Revenue Code: 94
T73 Connecticut Taxable Income Rate of Tax
T74 Not over $20,000 3.0%
T75 Over $20,000 but not $600.00, plus 5.0% of the
T76 over $1,000,000 excess over $20,000
T77 Over $1,000,000 $49,600, plus 6.5% of the
T78 excess over $1,000,000

(D) For any person who files a return under the federal income tax 95
for such taxable year as a married individual filing separately: 96
T79 Connecticut Taxable Income Rate of Tax
T80 Not over $10,000 3.0%
T81 Over $10,000 but not $300.00, plus 5.0% of the
T82 over $500,000 excess over $10,000
T83 Over $500,000 $24,800, plus 6.5% of the
T84 excess over $500,000

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(E) For trusts or estates, the rate of tax shall be 6.5% of the Connecticut 97
taxable income. 98
(8) For taxable years commencing on or after January 1, 2011, but 99
prior to January 1, 2015, in accordance with the following schedule: 100
(A) (i) For any person who files a return under the federal income tax 101
for such taxable year as an unmarried individual: 102
T85 Connecticut Taxable Income Rate of Tax
T86 Not over $10,000 3.0%
T87 Over $10,000 but not $300.00, plus 5.0% of the
T88 over $50,000 excess over $10,000
T89 Over $50,000 but not $2,300, plus 5.5% of the
T90 over $100,000 excess over $50,000
T91 Over $100,000 but not $5,050, plus 6.0% of the
T92 over $200,000 excess over $100,000
T93 Over $200,000 but not $11,050, plus 6.5% of the
T94 over $250,000 excess over $200,000
T95 Over $250,000 $14,300, plus 6.70% of the
T96 excess over $250,000

(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 103
subdivision, for each taxpayer whose Connecticut adjusted gross 104
income exceeds fifty-six thousand five hundred dollars, the amount of 105
the taxpayer's Connecticut taxable income to which the three -per-cent 106
tax rate applies shall be reduced by one thousand dollars for each five 107
thousand dollars, or fraction thereof, by which the taxpayer's 108
Connecticut adjusted gross income exceeds said amount. Any such 109
amount of Connecticut taxable income to which, as provided in the 110
preceding sentence, the three -per-cent tax rate does not apply shall be 111
an amount to which the five-per-cent tax rate shall apply. 112
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 113
two hundred thousand dollars shall pay, in addition to the tax 114
computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 115
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this subdivision, an amount equal to seventy -five dollars for each five 116
thousand dollars, or fraction thereof, by which the taxpayer's 117
Connecticut adjusted gross income exceeds two hundred thousand 118
dollars, up to a maximum payment of two thousand two hundred fifty 119
dollars. 120
(B) (i) For any person who files a return under the federal income tax 121
for such taxable year as a head of household, as defined in Section 2(b) 122
of the Internal Revenue Code: 123
T97 Connecticut Taxable Income Rate of Tax
T98 Not over $16,000 3.0%
T99 Over $16,000 but not $480.00, plus 5.0% of the
T100 over $80,000 excess over $16,000
T101 Over $80,000 but not $3,680, plus 5.5% of the
T102 over $160,000 excess over $80,000
T103 Over $160,000 but not $8,080, plus 6.0% of the
T104 over $320,000 excess over $160,000
T105 Over $320,000 but not $17,680, plus 6.5% of the
T106 over $400,000 excess over $320,000
T107 Over $400,000 $22,880, plus 6.70% of the
T108 excess over $400,000

(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 124
subdivision, for each taxpayer whose Connecticut adjusted gross 125
income exceeds seventy -eight thousand five hundred dollars, the 126
amount of the taxpayer's Connecticut taxable income to which the three-127
per-cent tax rate applies shall be reduced by one thousand six hundred 128
dollars for each four thousand dollars, or fraction thereof, by which the 129
taxpayer's Connecticut adjusted gross income exceeds said amount. 130
Any such amount of Connecticut taxable income to which, as provided 131
in the preceding sentence, the three -per-cent tax rate does not apply 132
shall be an amount to which the five-per-cent tax rate shall apply. 133
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 134
three hundred twenty thousand dollars shall pay, in addition to the tax 135
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sHB5444 / File No. 667 10

computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 136
this subdivision, an amount equal to one hundred twenty dollars for 137
each eight thousand dollars, or fraction thereof, by which the taxpayer's 138
Connecticut adjusted gross income exceeds three hundred twenty 139
thousand dollars, up to a maximum payment of three thousand six 140
hundred dollars. 141
(C) (i) For any husband and wife who file a return under the federal 142
income tax for such taxable year as married individuals filing jointly or 143
any person who files a return under the federal income tax for such 144
taxable year as a surviving spouse, as defined in Section 2(a) of the 145
Internal Revenue Code: 146
T109 Connecticut Taxable Income Rate of Tax
T110 Not over $20,000 3.0%
T111 Over $20,000 but not $600.00, plus 5.0% of the
T112 over $100,000 excess over $20,000
T113 Over $100,000 but not $4,600, plus 5.5% of the
T114 over $200,000 excess over $100,000
T115 Over $200,000 but not $10,100, plus 6.0% of the
T116 over $400,000 excess over $200,000
T117 Over $400,000 but not $22,100, plus 6.5% of the
T118 over $500,000 excess over $400,000
T119 Over $500,000 $28,600, plus 6.70% of the
T120 excess over $500,000

(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 147
subdivision, for each taxpayer whose Connecticut adjusted gross 148
income exceeds one hundred thousand five hundred dollars, the 149
amount of the taxpayer's Connecticut taxable income to which the three-150
per-cent tax rate applies shall be reduced by two thousand dollars for 151
each five thousand dollars, or fraction thereof, by which the taxpayer's 152
Connecticut adjusted gross income exceeds said amount. Any such 153
amount of Connecticut taxable income to which, as provided in the 154
preceding sentence, the three -per-cent tax rate does not apply shall be 155
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an amount to which the five-per-cent tax rate shall apply. 156
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 157
four hundred thousand dollars shall pay, in addition to the tax 158
computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 159
this subdivision, an amount equal to one hundred fifty dollars for each 160
ten thousand dollars, or fraction thereof, by which the taxpayer's 161
Connecticut adjusted gross income exceeds four hundred thousand 162
dollars, up to a maximum payment of four thousand five hundred 163
dollars. 164
(D) (i) For any person who files a return under the federal income tax 165
for such taxable year as a married individual filing separately: 166
T121 Connecticut Taxable Income Rate of Tax
T122 Not over $10,000 3.0%
T123 Over $10,000 but not $300.00, plus 5.0% of the
T124 over $50,000 excess over $10,000
T125 Over $50,000 but not $2,300, plus 5.5% of the
T126 over $100,000 excess over $50,000
T127 Over $100,000 but not $5,050, plus 6.0% of the
T128 over $200,000 excess over $100,000
T129 Over $200,000 but not $11,050, plus 6.5% of the
T130 over $250,000 excess over $200,000
T131 Over $250,000 $14,300, plus 6.70% of the
T132 excess over $250,000

(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 167
subdivision, for each taxpayer whose Connecticut adjusted gross 168
income exceeds fifty thousand two hundred fifty dollars, the amount of 169
the taxpayer's Connecticut taxable income to which the three -per-cent 170
tax rate applies shall be reduced by one thousand dollars for each two 171
thousand five hundred dollars, or fraction thereof, by which the 172
taxpayer's Connecticut adjusted gross income exceeds said amount. 173
Any such amount of Connecticut taxable income to which, as provided 174
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in the preceding sentence, the three -per-cent tax rate does not apply 175
shall be an amount to which the five-per-cent tax rate shall apply. 176
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 177
two hundred thousand dollars shall pay, in addition to the tax 178
computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 179
this subdivision, an amount equal to seventy -five dollars for each five 180
thousand dollars, or fraction thereof, by which the taxpayer's 181
Connecticut adjusted gross income exceeds two hundred thousand 182
dollars, up to a maximum payment of two thousand two hundred fifty 183
dollars. 184
(E) For trusts or estates, the rate of tax shall be 6.70% of the 185
Connecticut taxable income. 186
(9) For taxable years commencing on or after January 1, 2015, but 187
prior to January 1, 2024, in accordance with the following schedule: 188
(A) (i) For any person who files a return under the federal income tax 189
for such taxable year as an unmarried individual: 190
T133 Connecticut Taxable Income Rate of Tax
T134 Not over $10,000 3.0%
T135 Over $10,000 but not $300.00, plus 5.0% of the
T136 over $50,000 excess over $10,000
T137 Over $50,000 but not $2,300, plus 5.5% of the
T138 over $100,000 excess over $50,000
T139 Over $100,000 but not $5,050, plus 6.0% of the
T140 over $200,000 excess over $100,000
T141 Over $200,000 but not $11,050, plus 6.5% of the
T142 over $250,000 excess over $200,000
T143 Over $250,000 but not $14,300, plus 6.9% of the
T144 over $500,000 excess over $250,000
T145 Over $500,000 $31,550, plus 6.99% of the
T146 excess over $500,000

(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 191
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sHB5444 / File No. 667 13

subdivision, for each taxpayer whose Connecticut adjusted gross 192
income exceeds fifty-six thousand five hundred dollars, the amount of 193
the taxpayer's Connecticut taxable income to which the three -per-cent 194
tax rate applies shall be reduced by one thousand dollars for each five 195
thousand dollars, or fraction thereof, by which the taxpayer's 196
Connecticut adjusted gross income exceeds said amount. Any such 197
amount of Connecticut taxable income to which, as provided in the 198
preceding sentence, the three -per-cent tax rate does not apply shall be 199
an amount to which the five-per-cent tax rate shall apply. 200
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 201
two hundred thousand dollars shall pay, in addition to the tax 202
computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 203
this subdivision, an amount equal to ninety dollars for each five 204
thousand dollars, or fraction thereof, by which the taxpayer's 205
Connecticut adjusted gross income exceeds two hundred thousand 206
dollars, up to a maximum payment of two thousand seven hundred 207
dollars. 208
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 209
five hundred thousand dollars shall pay, in addition to the tax 210
computed under the provisions of subparagraphs (A)(i), (A)(ii) and 211
(A)(iii) of this subdivision, an amount equal to fifty dollars for each five 212
thousand dollars, or fraction thereof, by which the taxpayer's 213
Connecticut adjusted gross income exceeds five hundred thousand 214
dollars, up to a maximum payment of four hundred fifty dollars. 215
(B) (i) For any person who files a return under the federal income tax 216
for such taxable year as a head of household, as defined in Section 2(b) 217
of the Internal Revenue Code: 218
T147 Connecticut Taxable Income Rate of Tax
T148 Not over $16,000 3.0%
T149 Over $16,000 but not $480.00, plus 5.0% of the
T150 over $80,000 excess over $16,000
T151 Over $80,000 but not $3,680, plus 5.5% of the
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sHB5444 / File No. 667 14

T152 over $160,000 excess over $80,000
T153 Over $160,000 but not $8,080, plus 6.0% of the
T154 over $320,000 excess over $160,000
T155 Over $320,000 but not $17,680, plus 6.5% of the
T156 over $400,000 excess over $320,000
T157 Over $400,000 but not $22,880, plus 6.9% of the
T158 over $800,000 excess over $400,000
T159 Over $800,000 $50,480, plus 6.99% of the
T160 excess over $800,000

(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 219
subdivision, for each taxpayer whose Connecticut adjusted gross 220
income exceeds seventy -eight thousand five hundred dollars, the 221
amount of the taxpayer's Connecticut taxable income to which the three-222
per-cent tax rate applies shall be reduced by one thousand six hundred 223
dollars for each four thousand dollars, or fraction thereof, by which the 224
taxpayer's Connecticut adjusted gross income exceeds said amount. 225
Any such amount of Connecticut taxable income to which, as provided 226
in the preceding sentence, the three -per-cent tax rate does not apply 227
shall be an amount to which the five-per-cent tax rate shall apply. 228
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 229
three hundred twenty thousand dollars shall pay, in addition to the tax 230
computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 231
this subdivision, an amount equal to one hundred forty dollars for each 232
eight thousand dollars, or fraction thereof, by which the taxpayer's 233
Connecticut adjusted gross income exceeds three hundred twenty 234
thousand dollars, up to a maximum payment of four thousand two 235
hundred dollars. 236
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 237
eight hundred thousand dollars shall pay, in addition to the tax 238
computed under the provisions of subparagraphs (B)(i), (B)(ii) and 239
(B)(iii) of this subdivision, an amount equal to eighty dollars for each 240
eight thousand dollars, or fraction thereof, by which the taxpayer's 241
Connecticut adjusted gross income exceeds eight hundred thousand 242
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sHB5444 / File No. 667 15

dollars, up to a maximum payment of seven hundred twenty dollars. 243
(C) (i) For any husband and wife who file a return under the federal 244
income tax for such taxable year as married individuals filing jointly or 245
any person who files a return under the federal income tax for such 246
taxable year as a surviving spouse, as defined in Section 2(a) of the 247
Internal Revenue Code: 248
T161 Connecticut Taxable Income Rate of Tax
T162 Not over $20,000 3.0%
T163 Over $20,000 but not $600.00, plus 5.0% of the
T164 over $100,000 excess over $20,000
T165 Over $100,000 but not $4,600, plus 5.5% of the
T166 over $200,000 excess over $100,000
T167 Over $200,000 but not $10,100, plus 6.0% of the
T168 over $400,000 excess over $200,000
T169 Over $400,000 but not $22,100, plus 6.5% of the
T170 over $500,000 excess over $400,000
T171 Over $500,000 but not $28,600, plus 6.9% of the
T172 over $1,000,000 excess over $500,000
T173 Over $1,000,000 $63,100, plus 6.99% of the
T174 excess over $1,000,000

(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 249
subdivision, for each taxpayer whose Connecticut adjusted gross 250
income exceeds one hundred thousand five hundred dollars, the 251
amount of the taxpayer's Connecticut taxable income to which the three-252
per-cent tax rate applies shall be reduced by two thousand dollars for 253
each five thousand dollars, or fraction thereof, by which the taxpayer's 254
Connecticut adjusted gross income exceeds said amount. Any such 255
amount of Connecticut taxable income to which, as provided in the 256
preceding sentence, the three -per-cent tax rate does not apply shall be 257
an amount to which the five-per-cent tax rate shall apply. 258
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 259
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sHB5444 / File No. 667 16

four hundred thousand dollars shall pay, in addition to the tax 260
computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 261
this subdivision, an amount equal to one hundred eighty dollars for 262
each ten thousand dollars, or fraction thereof, by which the taxpayer's 263
Connecticut adjusted gross income exceeds four hundred thousand 264
dollars, up to a maximum payment of five thousand four hundred 265
dollars. 266
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 267
one million dollars shall pay, in addition to the tax computed under the 268
provisions of subparagraphs (C)(i), (C)(ii) and (C)(iii) of this 269
subdivision, an amount equal to one hundred dollars for each ten 270
thousand dollars, or fraction thereof, by which the taxpayer's 271
Connecticut adjusted gross income exceeds one million dollars, up to a 272
maximum payment of nine hundred dollars. 273
(D) (i) For any person who files a return under the federal income tax 274
for such taxable year as a married individual filing separately: 275
T175 Connecticut Taxable Income Rate of Tax
T176 Not over $10,000 3.0%
T177 Over $10,000 but not $300.00, plus 5.0% of the
T178 over $50,000 excess over $10,000
T179 Over $50,000 but not $2,300, plus 5.5% of the
T180 over $100,000 excess over $50,000
T181 Over $100,000 but not $5,050, plus 6.0% of the
T182 over $200,000 excess over $100,000
T183 Over $200,000 but not $11,050, plus 6.5% of the
T184 over $250,000 excess over $200,000
T185 Over $250,000 but not $14,300, plus 6.9% of the
T186 over $500,000 excess over $250,000
T187 Over $500,000 $31,550, plus 6.99% of the
T188 excess over $500,000

(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 276
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sHB5444 / File No. 667 17

subdivision, for each taxpayer whose Connecticut adjusted gross 277
income exceeds fifty thousand two hundred fifty dollars, the amount of 278
the taxpayer's Connecticut taxable income to which the three -per-cent 279
tax rate applies shall be reduced by one thousand dollars for each two 280
thousand five hundred dollars, or fraction thereof, by which the 281
taxpayer's Connecticut adjusted gross income exceeds said amount. 282
Any such amount of Connecticut taxable income to which, as provided 283
in the preceding sentence, the three -per-cent tax rate does not apply 284
shall be an amount to which the five-per-cent tax rate shall apply. 285
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 286
two hundred thousand dollars shall pay, in addition to the tax 287
computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 288
this subdivision, an amount equal to ninety dollars for each five 289
thousand dollars, or fraction thereof, by which the taxpayer's 290
Connecticut adjusted gross income exceeds two hundred thousand 291
dollars, up to a maximum payment of two thousand seven hundred 292
dollars. 293
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 294
five hundred thousand dollars shall pay, in addition to the tax 295
computed under the provisions of subparagraphs (D)(i), (D)(ii) and 296
(D)(iii) of this subdivision, an amount equal to fifty dollars for each five 297
thousand dollars, or fraction thereof, by which the taxpayer's 298
Connecticut adjusted gross income exceeds five hundred thousand 299
dollars, up to a maximum payment of four hundred fifty dollars. 300
(E) For trusts or estates, the rate of tax shall be 6.99% of the 301
Connecticut taxable income. 302
(10) For taxable years commencing on or after January 1, 2024, in 303
accordance with the following schedule and, for taxable years 304
commencing on or after January 1, 2028, subject to the provisions of 305
subdivision (11) of this subsection: 306
(A) (i) For any person who files a return under the federal income tax 307
for such taxable year as an unmarried individual: 308
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T189 Connecticut Taxable Income Rate of Tax
T190 Not over $10,000 2.0%
T191 Over $10,000 but not $200.00, plus 4.5% of the
T192 over $50,000 excess over $10,000
T193 Over $50,000 but not $2,000, plus 5.5% of the
T194 over $100,000 excess over $50,000
T195 Over $100,000 but not $4,750, plus 6.0% of the
T196 over $200,000 excess over $100,000
T197 Over $200,000 but not $10,750, plus 6.5% of the
T198 over $250,000 excess over $200,000
T199 Over $250,000 but not $14,000, plus 6.9% of the
T200 over $500,000 excess over $250,000
T201 Over $500,000 $31,250, plus 6.99% of the
T202 excess over $500,000

(ii) Notwithstanding the provisions of subparagraph (A)(i) of this 309
subdivision, for each taxpayer whose Connecticut adjusted gross 310
income exceeds fifty-six thousand five hundred dollars, the amount of 311
the taxpayer's Connecticut taxable income to which the two-per-cent tax 312
rate applies shall be reduced by one thousand dollars for each five 313
thousand dollars, or fraction thereof, by which the taxpayer's 314
Connecticut adjusted gross income exceeds said amount. Any such 315
amount of Connecticut taxable income to which, as provided in the 316
preceding sentence, the two-per-cent tax rate does not apply shall be an 317
amount to which the four-and-one-half-per-cent tax rate shall apply. 318
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 319
one hundred five thousand dollars shall pay, in addition to the tax 320
computed under the provisions of subparagraphs (A)(i) and (A)(ii) of 321
this subdivision, an amount equal to twenty -five dollars for each five 322
thousand dollars, or fraction thereof, by which the taxpayer's 323
Connecticut adjusted gross income exceeds one hundred five thousand 324
dollars, up to a maximum payment of two hundred fifty dollars. 325
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 326
two hundred thousand dollars shall pay, in addition to the tax 327
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computed under the provisions of subparagraphs (A)(i), (A)(ii) and 328
(A)(iii) of this subdivision, an amount equal to ninety dollars for each 329
five thousand dollars, or fraction thereof, by which the taxpayer's 330
Connecticut adjusted gross income exceeds two hundred thousand 331
dollars, up to a maximum payment of two thousand seven hundred 332
dollars. 333
(v) Each taxpayer whose Connecticut adjusted gross income exceeds 334
five hundred thousand dollars shall pay, in addition to the tax 335
computed under the provisions of subparagraphs (A)(i), (A)(ii), (A)(iii) 336
and (A)(iv) of this subdivision, an amount equal to fifty dollars for each 337
five thousand dollars, or fraction thereof, by which the taxpayer's 338
Connecticut adjusted gross income exceeds five hundred thousand 339
dollars, up to a maximum payment of four hundred fifty dollars. 340
(B) (i) For any person who files a return under the federal income tax 341
for such taxable year as a head of household, as defined in Section 2(b) 342
of the Internal Revenue Code: 343
T203 Connecticut Taxable Income Rate of Tax
T204 Not over $16,000 2.0%
T205 Over $16,000 but not $320.00, plus 4.5% of the
T206 over $80,000 excess over $16,000
T207 Over $80,000 but not $3,200, plus 5.5% of the
T208 over $160,000 excess over $80,000
T209 Over $160,000 but not $7,600, plus 6.0% of the
T210 over $320,000 excess over $160,000
T211 Over $320,000 but not $17,200, plus 6.5% of the
T212 over $400,000 excess over $320,000
T213 Over $400,000 but not $22,400, plus 6.9% of the
T214 over $800,000 excess over $400,000
T215 Over $800,000 $50,000, plus 6.99% of the
T216 excess over $800,000

(ii) Notwithstanding the provisions of subparagraph (B)(i) of this 344
subdivision, for each taxpayer whose Connecticut adjusted gross 345
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income exceeds seventy -eight thousand five hundred dollars, the 346
amount of the taxpayer's Connecticut taxable income to which the two-347
per-cent tax rate applies shall be reduced by one thousand six hundred 348
dollars for each four thousand dollars, or fraction thereof, by which the 349
taxpayer's Connecticut adjusted gross income exceeds said amount. 350
Any such amount of Connecticut taxable income to which, as provided 351
in the preceding sentence, the two-per-cent tax rate does not apply shall 352
be an amount to which the four -and-one-half-per-cent tax rate shall 353
apply. 354
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 355
one hundred sixty -eight thousand dollars shall pay, in addition to the 356
tax computed under the provisions of subparagraphs (B)(i) and (B)(ii) of 357
this subdivision, an amount equal to forty dollars for each eight 358
thousand dollars, or fraction thereof, by which the taxpayer's 359
Connecticut adjusted gross income exceeds one hundred sixty -eight 360
thousand dollars, up to a maximum payment of four hundred dollars. 361
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 362
three hundred twenty thousand dollars shall pay, in addition to the tax 363
computed under the provisions of subparagraphs (B)(i), (B)(ii) and 364
(B)(iii) of this subdivision, an amount equal to one hundred forty dollars 365
for each eight thousand dollars, or fraction thereof, by which the 366
taxpayer's Connecticut adjusted gross income exceeds three hundred 367
twenty thousand dollars, up to a maximum payment of four thousand 368
two hundred dollars. 369
(v) Each taxpayer whose Connecticut adjusted gross income exceeds 370
eight hundred thousand dollars shall pay, in addition to the tax 371
computed under the provisions of subparagraphs (B)(i), (B)(ii), (B)(iii) 372
and (B)(iv) of this subdivision, an amount equal to eighty dollars for 373
each eight thousand dollars, or fraction thereof, by which the taxpayer's 374
Connecticut adjusted gross income exceeds eight hundred thousand 375
dollars, up to a maximum payment of seven hundred twenty dollars. 376
(C) (i) For any husband and wife who file a return under the federal 377
income tax for such taxable year as married individuals filing jointly or 378
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any person who files a return under the federal income tax for such 379
taxable year as a surviving spouse, as defined in Section 2(a) of the 380
Internal Revenue Code: 381
T217 Connecticut Taxable Income Rate of Tax
T218 Not over $20,000 2.0%
T219 Over $20,000 but not $400.00, plus 4.5% of the
T220 over $100,000 excess over $20,000
T221 Over $100,000 but not $4,000, plus 5.5% of the
T222 over $200,000 excess over $100,000
T223 Over $200,000 but not $9,500, plus 6.0% of the
T224 over $400,000 excess over $200,000
T225 Over $400,000 but not $21,500, plus 6.5% of the
T226 over $500,000 excess over $400,000
T227 Over $500,000 but not $28,000, plus 6.9% of the
T228 over $1,000,000 excess over $500,000
T229 Over $1,000,000 $62,500, plus 6.99% of the
T230 excess over $1,000,000

(ii) Notwithstanding the provisions of subparagraph (C)(i) of this 382
subdivision, for each taxpayer whose Connecticut adjusted gross 383
income exceeds one hundred thousand five hundred dollars, the 384
amount of the taxpayer's Connecticut taxable income to which the two-385
per-cent tax rate applies shall be reduced by two thousand dollars for 386
each five thousand dollars, or fraction thereof, by which the taxpayer's 387
Connecticut adjusted gross income exceeds said amount. Any such 388
amount of Connecticut taxable income to which, as provided in the 389
preceding sentence, the two-per-cent tax rate does not apply shall be an 390
amount to which the four-and-one-half-per-cent tax rate shall apply. 391
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 392
two hundred ten thousand dollars shall pay, in addition to the tax 393
computed under the provisions of subparagraphs (C)(i) and (C)(ii) of 394
this subdivision, an amount equal to fifty dollars for each ten thousand 395
dollars, or fraction thereof, by which the taxpayer's Connecticut 396
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sHB5444 / File No. 667 22

adjusted gross income exceeds two hundred ten thousand dollars, up to 397
a maximum payment of five hundred dollars. 398
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 399
four hundred thousand dollars shall pay, in addition to the tax 400
computed under the provisions of subparagraphs (C)(i), (C)(ii) and 401
(C)(iii) of this subdivision, an amount equal to one hundred eighty 402
dollars for each ten thousand dollars, or fraction thereof, by which the 403
taxpayer's Connecticut adjusted gross income exceeds four hundred 404
thousand dollars, up to a maximum payment of five thousand four 405
hundred dollars. 406
(v) Each taxpayer whose Connecticut adjusted gross income exceeds 407
one million dollars shall pay, in addition to the tax computed under the 408
provisions of subparagraphs (C)(i), (C)(ii), (C)(iii) and (C)(iv) of this 409
subdivision, an amount equal to one hundred dollars for each ten 410
thousand dollars, or fraction thereof, by which the taxpayer's 411
Connecticut adjusted gross income exceeds one million dollars, up to a 412
maximum payment of nine hundred dollars. 413
(D) (i) For any person who files a return under the federal income tax 414
for such taxable year as a married individual filing separately: 415
T231 Connecticut Taxable Income Rate of Tax
T232 Not over $10,000 2.0%
T233 Over $10,000 but not $200.00, plus 4.5% of the
T234 over $50,000 excess over $10,000
T235 Over $50,000 but not $2,000, plus 5.5% of the
T236 over $100,000 excess over $50,000
T237 Over $100,000 but not $4,750, plus 6.0% of the
T238 over $200,000 excess over $100,000
T239 Over $200,000 but not $10,750, plus 6.5% of the
T240 over $250,000 excess over $200,000
T241 Over $250,000 but not $14,000, plus 6.9% of the
T242 over $500,000 excess over $250,000
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sHB5444 / File No. 667 23

T243 Over $500,000 $31,250, plus 6.99% of the
T244 excess over $500,000

(ii) Notwithstanding the provisions of subparagraph (D)(i) of this 416
subdivision, for each taxpayer whose Connecticut adjusted gross 417
income exceeds fifty thousand two hundred fifty dollars, the amount of 418
the taxpayer's Connecticut taxable income to which the two-per-cent tax 419
rate applies shall be reduced by one thousand dollars for each two 420
thousand five hundred dollars, or fraction thereof, by which the 421
taxpayer's Connecticut adjusted gross income exceeds said amount. 422
Any such amount of Connecticut taxable income to which, as provided 423
in the preceding sentence, the two-per-cent tax rate does not apply shall 424
be an amount to which the four -and-one-half-per-cent tax rate shall 425
apply. 426
(iii) Each taxpayer whose Connecticut adjusted gross income exceeds 427
one hundred five thousand dollars shall pay, in addition to the tax 428
computed under the provisions of subparagraphs (D)(i) and (D)(ii) of 429
this subdivision, an amount equal to twenty -five dollars for each five 430
thousand dollars, or fraction thereof, by which the taxpayer's 431
Connecticut adjusted gross income exceeds one hundred five thousand 432
dollars, up to a maximum payment of two hundred fifty dollars. 433
(iv) Each taxpayer whose Connecticut adjusted gross income exceeds 434
two hundred thousand dollars shall pay, in addition to the tax 435
computed under the provisions of subparagraphs (D)(i), (D)(ii) and 436
(D)(iii) of this subdivision, an amount equal to ninety dollars for each 437
five thousand dollars, or fraction thereof, by which the taxpayer's 438
Connecticut adjusted gross income exceeds two hundred thousand 439
dollars, up to a maximum payment of two thousand seven hundred 440
dollars. 441
(v) Each taxpayer whose Connecticut adjusted gross income exceeds 442
five hundred thousand dollars shall pay, in addition to the tax 443
computed under the provisions of subparagraphs (D)(i), (D)(ii), (D)(iii) 444
and (D)(iv) of this subdivision, an amount equal to fifty dollars for each 445
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sHB5444 / File No. 667 24

five thousand dollars, or fraction thereof, by which the taxpayer's 446
Connecticut adjusted gross income exceeds five hundred thousand 447
dollars, up to a maximum payment of four hundred fifty dollars. 448
(E) For trusts or estates, the rate of tax shall be 6.99% of the 449
Connecticut taxable income. 450
(11) (A) For taxable years commencing on or after January 1, 2028, but 451
prior to January 1, 2029, the Connecticut taxable income brackets set 452
forth in subparagraphs (A)(i), (B)(i), (C)(i) and (D)(i) of subdivision (10) 453
of this subsection shall be adjusted by the percentage increase in 454
inflation and rounded to the nearest dollar. 455
(B) For taxable years commencing on or after January 1, 2029, the 456
income brackets calculated for the preceding taxable year shall be 457
adjusted annually by the percentage increase in inflation and rounded 458
to the nearest dollar. 459
(C) As used in this subdivision, "increase in inflation" means the 460
increase in the chained consumer price index for all urban consumers 461
during the preceding year, calculated on an August over August basis, 462
using data reported by the United States Bureau of Labor Statistics. 463
[(11)] (12) The provisions of this subsection shall apply to resident 464
trusts and estates and, wherever reference is made in this subsection to 465
residents of this state, such reference shall be construed to include 466
resident trusts and estates, provided any reference to a resident's 467
Connecticut adjusted gross income derived from sources without this 468
state or to a resident's Connecticut adjusted gross income shall be 469
construed, in the case of a resident trust or estate, to mean the resident 470
trust or estate's Connecticut taxable income derived from sources 471
without this state and the resident trust or estate's Connecticut taxable 472
income, respectively. 473
Sec. 2. Section 12 -702 of the general statutes is repealed and the 474
following is substituted in lieu thereof (Effective October 1, 2026): 475
(a) (1) (A) Any person, other than a trust or estate, subject to the tax 476
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sHB5444 / File No. 667 25

under this chapter for any taxable year who files under the federal 477
income tax for such taxable year as a married individual filing 478
separately or, for taxable years commencing prior to January 1, 2000, 479
who files income tax for such taxable year as an unmarried individual 480
shall be entitled to a personal exemption of twelve thousand dollars in 481
determining Connecticut taxable income for purposes of this chapter. 482
(B) In the case of any such taxpayer whose Connecticut adjusted gross 483
income for the taxable year exceeds twenty -four thousand dollars, the 484
exemption amount shall be reduced by one thousand dollars for each 485
one thousand dollars, or fraction thereof, by which the taxpayer's 486
Connecticut adjusted gross income for the taxable year exceeds said 487
amount. In no event shall the reduction exceed one hundred per cent of 488
the exemption. 489
(C) (i) For taxable years commencing on or after January 1, 2028, but 490
prior to January 1, 2029, the personal exemption amount set forth in 491
subparagraph (A) of this subdivision and the Connecticut adjusted 492
gross income threshold set forth in subparagraph (B) of this subdivision 493
shall be adjusted by the percentage increase in inflation and rounded to 494
the nearest dollar. In the case of any such taxpayer whose Connecticut 495
adjusted gross income for the taxable year exceeds the income threshold 496
as adjusted pursuant to this clause, the exemption amount shall be 497
reduced by one thousand dollars for each one thousand dollars, or 498
fraction thereof, by which the taxpayer's Connecticut adjusted gross 499
income for the taxable year exceeds such income threshold. In no event 500
shall the reduction exceed one hundred per cent of the exemption. 501
(ii) For taxable years commencing on or after January 1, 2029, the 502
personal exemption amount and the income threshold calculated for the 503
preceding taxable year shall be adjusted annually by the percentage 504
increase in inflation and rounded to the nearest dollar. In the case of any 505
such taxpayer whose Connecticut adjusted gross income for the taxable 506
year exceeds the income threshold as adjusted pursuant to this clause, 507
the exemption amount shall be reduced by one thousand dollars for 508
each one thousand dollars, or fraction thereof, by which the taxpayer's 509
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sHB5444 / File No. 667 26

Connecticut adjusted gross income for the taxable year exceeds such 510
income threshold. In no event shall the reduction exceed one hundred 511
per cent of the exemption. 512
(2) For taxable years commencing on or after January 1, 2000, any 513
person, other than a trust or estate, subject to the tax under this chapter 514
for any taxable year who files under the federal income tax for such 515
taxable year as an unmarried individual shall be entitled to a personal 516
exemption in determining Connecticut taxable income for purposes of 517
this chapter as follows: 518
(A) For taxable years commencing on or after January 1, 2000, but 519
prior to January 1, 2001, twelve thousand two hundred fifty dollars. In 520
the case of any such taxpayer whose Connecticut adjusted gross income 521
for the taxable year exceeds twenty-four thousand five hundred dollars, 522
the exemption amount shall be reduced by one thousand dollars for 523
each one thousand dollars, or fraction thereof, by which the taxpayer's 524
Connecticut adjusted gross income for the taxable year exceeds said 525
amount. In no event shall the reduction exceed one hundred per cent of 526
the exemption; 527
(B) For taxable years commencing on or after January 1, 2001, but 528
prior to January 1, 2004, twelve thousand five hundred dollars. In the 529
case of any such taxpayer whose Connecticut adjusted gross income for 530
the taxable year exceeds twenty -five thousand dollars, the exemption 531
amount shall be reduced by one thousand dollars for each one thousand 532
dollars, or fraction thereof, by which the taxpayer's Connecticut 533
adjusted gross income for the taxable year exceeds said amount. In no 534
event shall the reduction exceed one hundred per cent of the exemption; 535
(C) For taxable years commencing on or after January 1, 2004, but 536
prior to January 1, 2007, twelve thousand six hundred twenty -five 537
dollars. In the case of any such taxpayer whose Connecticut adjusted 538
gross income for the taxable year exceeds twenty -five thousand two 539
hundred fifty dollars, the exemption amount shall be reduced by one 540
thousand dollars for each one thousand dollars, or fraction thereof, by 541
which the taxpayer's Connecticut adjusted gross income for the taxable 542
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sHB5444 / File No. 667 27

year exceeds said amount. In no event shall the reduction exceed one 543
hundred per cent of the exemption; 544
(D) For taxable years commencing on or after January 1, 2007, but 545
prior to January 1, 2008, twelve thousand seven hundred fifty dollars. 546
In the case of any such taxpayer whose Connecticut adjusted gross 547
income for the taxable year exceeds twenty-five thousand five hundred 548
dollars, the exemption amount shall be reduced by one thousand dollars 549
for each one thousand dollars, or fraction thereof, by which the 550
taxpayer's Connecticut adjusted gross income for the taxable year 551
exceeds said amount. In no event shall the reduction exceed one 552
hundred per cent of the exemption; 553
(E) For taxable years commencing on or after January 1, 2008, but 554
prior to January 1, 2012, thirteen thousand dollars. In the case of any 555
such taxpayer whose Connecticut adjusted gross income for the taxable 556
year exceeds twenty-six thousand dollars, the exemption amount shall 557
be reduced by one thousand dollars for each one thousand dollars, or 558
fraction thereof, by which the taxpayer's Connecticut adjusted gross 559
income for the taxable year exceeds said amount. In no event shall the 560
reduction exceed one hundred per cent of the exemption; 561
(F) For taxable years commencing on or after January 1, 2012, but 562
prior to January 1, 2013, thirteen thousand five hundred dollars. In the 563
case of any such taxpayer whose Connecticut adjusted gross income for 564
the taxable year exceeds twenty-seven thousand dollars, the exemption 565
amount shall be reduced by one thousand dollars for each one thousand 566
dollars, or fraction thereof, by which the taxpayer's Connecticut 567
adjusted gross income for the taxable year exceeds said amount. In no 568
event shall the reduction exceed one hundred per cent of the exemption; 569
(G) For taxable years commencing on or after January 1, 2013, but 570
prior to January 1, 2014, fourteen thousand dollars. In the case of any 571
such taxpayer whose Connecticut adjusted gross income for the taxable 572
year exceeds twenty -eight thousand dollars, the exemption amount 573
shall be reduced by one thousand dollars for each one thousand dollars, 574
or fraction thereof, by which the taxpayer's Connecticut adjusted gross 575
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sHB5444 / File No. 667 28

income for the taxable year exceeds said amount. In no event shall the 576
reduction exceed one hundred per cent of the exemption; 577
(H) For taxable years commencing on or after January 1, 2014, but 578
prior to January 1, 2016, fourteen thousand five hundred dollars. In the 579
case of any such taxpayer whose Connecticut adjusted gross income for 580
the taxable year exceeds twenty -nine thousand dollars, the exemption 581
amount shall be reduced by one thousand dollars for each one thousand 582
dollars, or fraction thereof, by which the taxpayer's Connecticut 583
adjusted gross income for the taxable year exceeds said amount. In no 584
event shall the reduction exceed one hundred per cent of the exemption; 585
(I) For taxable years commencing on or after January 1, 2016, but prior 586
to January 1, 2028, fifteen thousand dollars. In the case of any such 587
taxpayer whose Connecticut adjusted gross income for the taxable year 588
exceeds thirty thousand dollars, the exemption amount shall be reduced 589
by one thousand dollars for each one thousand dollars, or fraction 590
thereof, by which the taxpayer's Connecticut adjusted gross income for 591
the taxable year exceeds said amount. In no event shall the reduction 592
exceed one hundred per cent of the exemption; [.] 593
(J) (i) For taxable years commencing on or after January 1, 2028, but 594
prior to January 1, 2029, the personal exemption amount and the 595
Connecticut adjusted gross income threshold set forth in subparagraph 596
(I) of this subdivision shall be adjusted by the percentage increase in 597
inflation and rounded to the nearest dollar. In the case of any such 598
taxpayer whose Connecticut adjusted gross income for the taxable year 599
exceeds the income threshold as adjusted pursuant to this clause, the 600
exemption amount shall be reduced by one thousand dollars for each 601
one thousand dollars, or fraction thereof, by which the taxpayer's 602
Connecticut adjusted gross income for the taxable year exceeds such 603
income threshold. In no event shall the reduction exceed one hundred 604
per cent of the exemption; 605
(ii) For taxable years commencing on or after January 1, 2029, the 606
personal exemption amount and the income threshold calculated for the 607
preceding taxable year shall be adjusted annually by the percentage 608
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sHB5444 / File No. 667 29

increase in inflation and rounded to the nearest dollar. In the case of any 609
such taxpayer whose Connecticut adjusted gross income for the taxable 610
year exceeds the income threshold as adjusted pursuant to this clause, 611
the exemption amount shall be reduced by one thousand dollars for 612
each one thousand dollars, or fraction thereof, by which the taxpayer's 613
Connecticut adjusted gross income for the taxable year exceeds such 614
income threshold. In no event shall the reduction exceed one hundred 615
per cent of the exemption. 616
(b) (1) Any person subject to tax under this chapter who files a return 617
under the federal income tax for such taxable year as a head of 618
household, as defined in Section 2(b) of the Internal Revenue Code, shall 619
be entitled to a personal exemption of nineteen thousand dollars in 620
determining Connecticut taxable income for purposes of this chapter. 621
(2) In the case of any such taxpayer whose Connecticut adjusted gross 622
income for the taxable year exceeds thirty -eight thousand dollars, the 623
exemption amount shall be reduced by one thousand dollars for each 624
one thousand dollars, or fraction thereof, by which the taxpayer's 625
Connecticut adjusted gross income for the taxable year exceeds the said 626
amount. In no event shall the reduction exceed one hundred per cent of 627
the exemption. 628
(3) (A) For taxable years commencing on or after January 1, 2028, but 629
prior to January 1, 2029, the personal exemption amount set forth in 630
subdivision (1) of this subsection and the Connecticut adjusted gross 631
income threshold set forth in subdivision (2) of this subsection shall be 632
adjusted by the percentage increase in inflation and rounded to the 633
nearest dollar. In the case of any such taxpayer whose Connecticut 634
adjusted gross income for the taxable year exceeds the income threshold 635
as adjusted pursuant to this subparagraph, the exemption amount shall 636
be reduced by one thousand dollars for each one thousand dollars, or 637
fraction thereof, by which the taxpayer's Connecticut adjusted gross 638
income for the taxable year exceeds such income threshold. In no event 639
shall the reduction exceed one hundred per cent of the exemption. 640
(B) For taxable years commencing on or after January 1, 2029, the 641
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sHB5444 / File No. 667 30

personal exemption amount and the income threshold calculated for the 642
preceding taxable year shall be adjusted annually by the percentage 643
increase in inflation and rounded to the nearest dollar. In the case of any 644
such taxpayer whose Connecticut adjusted gross income for the taxable 645
year exceeds the income threshold as adjusted pursuant to this 646
subparagraph, the exemption amount shall be reduced by one thousand 647
dollars for each one thousand dollars, or fraction thereof, by which the 648
taxpayer's Connecticut adjusted gross income for the taxable year 649
exceeds such income threshold. In no event shall the reduction exceed 650
one hundred per cent of the exemption. 651
(c) (1) Any husband and wife subject to tax under this chapter for any 652
taxable year who file a return under the federal income tax for such 653
taxable year as married individuals filing a joint return or any person 654
who files a return for such taxable year as a surviving spouse, as defined 655
in Section 2(a) of the Internal Revenue Code, shall be entitled to a single 656
personal exemption of twenty -four thousand dollars in determining 657
Connecticut taxable income for purposes of this chapter. Any husband 658
and wife who elect to file a joint return under the federal income tax for 659
any taxable year shall be required to file jointly with respect to such 660
taxable year for purposes of this chapter, in which event their tax 661
liability under this chapter shall be joint and several, except as otherwise 662
provided in section 12-702a, and any husband and wife who elect to file 663
separately under the federal income tax for any taxable year shall be 664
required to file separately with respect to such taxable year for purposes 665
of this chapter, provided (A) if either the husband or wife is a resident 666
and the other is a nonresident, separate taxes shall be determined on 667
their separate Connecticut taxable incomes on separate forms as 668
married individuals filing separately unless such husband and wife 669
determine their federal taxable income jointly and both elect to 670
determine their joint Connecticut taxable income as if both were 671
residents, or (B) if any husband and wife, both of whom are 672
nonresidents, elect to file a joint return under the federal income tax for 673
any taxable year and only one of them has income derived from or 674
connected with sources within this state during such taxable year, only 675
the spouse with income derived from or connected with sources within 676
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sHB5444 / File No. 667 31

this state shall be required to file a return in this state and, if only the 677
spouse with income derived from or connected with this state files such 678
a return in this state, a separate tax shall be determined on such spouse's 679
separate Connecticut taxable income as a married individual filing 680
separately unless such husband and wife both elect to determine their 681
joint Connecticut taxable income as if both had income derived from or 682
connected with sources within this state. 683
(2) In the case of any such taxpayer whose Connecticut adjusted gross 684
income for the taxable year exceeds forty -eight thousand dollars, the 685
exemption amount shall be reduced by one thousand dollars for each 686
one thousand dollars, or fraction thereof, by which the taxpayer's 687
Connecticut adjusted gross income for the taxable year exceeds the said 688
amount. In no event shall the reduction exceed one hundred per cent of 689
the exemption. 690
(3) (A) For taxable years commencing on or after January 1, 2028, but 691
prior to January 1, 2029, the personal exemption amount set forth in 692
subdivision (1) of this subsection and the Connecticut adjusted gross 693
income threshold set forth in subdivision (2) of this subsection shall be 694
adjusted by the percentage increase in inflation and rounded to the 695
nearest dollar. In the case of any such taxpayer whose Connecticut 696
adjusted gross income for the taxable year exceeds the income threshold 697
as adjusted pursuant to this subparagraph, the exemption amount shall 698
be reduced by one thousand dollars for each one thousand dollars, or 699
fraction thereof, by which the taxpayer's Connecticut adjusted gross 700
income for the taxable year exceeds such income threshold. In no event 701
shall the reduction exceed one hundred per cent of the exemption. 702
(B) For taxable years commencing on or after January 1, 2029, the 703
personal exemption amount and the income threshold calculated for the 704
preceding taxable year shall be adjusted annually by the percentage 705
increase in inflation and rounded to the nearest dollar. In the case of any 706
such taxpayer whose Connecticut adjusted gross income for the taxable 707
year exceeds the income threshold as adjusted pursuant to this 708
subparagraph, the exemption amount shall be reduced by one thousand 709
sHB5444 File No. 667

sHB5444 / File No. 667 32

dollars for each one thousand dollars, or fraction thereof, by which the 710
taxpayer's Connecticut adjusted gross income for the taxable year 711
exceeds such income threshold. In no event shall the reduction exceed 712
one hundred per cent of the exemption. 713
(d) As used in this section, "increase in inflation" has the same 714
meaning as provided in subdivision (11) of subsection (a) of section 12-715
700, as amended by this act. 716
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 12-700(a)
Sec. 2 October 1, 2026 12-702

FIN Joint Favorable Subst.

sHB5444 File No. 667

sHB5444 / File No. 667 33

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
Revenue Serv., Dept. GF - Revenue
Loss
None 18.8 million
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill, which indexes the state personal income tax brackets and
personal exemption amounts to inflation beginning with the 2028
income year, results in a revenue loss of $18.8 million in FY 28.1
The Out Years
State Impact:
Agency Affected Fund-Effect FY 29 $ FY 30 $ FY 31 $
Revenue Serv.,
Dept.
GF - Revenue
Loss
68.8 million 118.8
million
168.8
million
Note: GF=General Fund
Municipal Impact: None

1 The policy would compound annually and could grow to a revenue loss of $268.8
million by FY 33, depending on actual rates of inflation in the future.
sHB5444 File No. 667

sHB5444 / File No. 667 34

OLR Bill Analysis
sHB 5444

AN ACT CONCERNING THE INDEXING OF CERTAIN PERSONAL
INCOME TAX THRESHOLDS AND EXEMPTION AMOUNTS.

SUMMARY
This bill requires state income tax brackets to be annually adjusted
for inflation and rounded to the next dollar , starting with the 2028 tax
year. The table below shows the current tax rates and brackets by filing
status. Under the bill, the tax brackets must be adjusted each year by the
increase in the chained consumer price index for all urban consumers
during the preceding year, calculated on an August over August basis
using U.S. Bureau of Labor Statistics data.
Table: State Income Tax Rates and Brackets
Tax Rate
Connecticut Taxable Income ($)
Single and Married
Filing Separately Heads of Household Married Filing Jointly
2% 0 to 10,000 0 to 16,000 0 to 20,000
4.5% 10,001 to 50,000 16,001 to 80,000 20,001 to 100,000
5.5% 50,001 to 100,000 80,001 to 160,000 100,001 to 200,000
6% 100,001 to 200,000 160,001 to 320,000 200,001 to 400,000
6.5% 200,001 to 250,000 320,001 to 400,000 400,001 to 500,000
6.9% 250,001 to 500,000 400,001 to 800,000 500,001 to 1,000,000
6.99% > 500,000 > 800,000 > 1,000,000

The bill also requires state income tax personal exemption amounts
and income thresholds to be adjusted for inflation in this way, starting
with the 2028 tax year. T he next table shows the current personal
exemption amounts by filing status and the income thresholds above
which the exemption starts phasing out. As under current law, the bill
requires the inflation -adjusted exemption amounts to be reduced by
$1,000 for each $1,000 of adjusted gross income (AGI) over the specified
threshold.
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sHB5444 / File No. 667 35

Table: Personal Exemptions
Filing Status Maximum Personal
Exemption ($)
Maximum
Exemption
Threshold ($)
CT AGI ≤
Single 15,000 30,000
Married Filing Separately 12,000 24,000
Head of Household 19,000 38,000
Married Filing Jointly 24,000 48,000

EFFECTIVE DATE: October 1, 2026
COMMITTEE ACTION
Finance, Revenue and Bonding Committee
Joint Favorable Substitute
Yea 53 Nay 0 (03/31/2026)