AN ACT ESTABLISHING A CAPITAL GAINS SURCHARGE.

Plain English Breakdown

The exact income thresholds for applying the surcharge are not provided in the official summary, leaving some uncertainty.

Law to Add Extra Tax on Big Gains

This law adds an extra tax called a surcharge for people in Connecticut who make significant profits from selling stocks or property and have high incomes.

What This Bill Does

• Adds a new tax called a capital gains surcharge for certain taxpayers.
• The surcharge is one percent of the gain if the taxpayer's income is at the highest marginal rate.
• If the taxpayer's income is at the second-highest marginal rate, the surcharge is 1.75% of the gain.

Who It Names or Affects

• Taxpayers in Connecticut with high incomes from selling capital assets.

Terms To Know

capital gains

The profit made when you sell something valuable, like a stock or property, for more than what it cost to buy.

surcharge

An extra tax added on top of regular taxes.

Limits and Unknowns

• The exact income thresholds for the surcharge are not specified in this summary.
• It is unclear when or if the governor will sign this bill into law.

Official Summary Text

To establish a capital gains surcharge on certain taxpayers.

Current Bill Text

LCO No. 507 1 of 1

General Assembly Proposed Bill No. 104
February Session, 2026 LCO No. 507

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
SEN. LOONEY, 11th Dist.

AN ACT ESTABLISHING A CAPITAL GAINS 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 on 2
a taxpayer , whose Connecticut adjusted gross income is equal to or 3
greater than the threshold amount specified in section 12 -700 of the 4
general statutes for imposition of the highest and second highest 5
marginal rates on such taxpayer, of one per cent and seventy -five-6
hundredths per cent, respectively. 7
Statement of Purpose:
To establish a capital gains surcharge on certain taxpayers.