Gov. Ned Lamont announced a proposal to reduce income tax rates for Connecticut”™s middle-class households.
Under the state”™s currently tax rate system, single filers pay a 3% state personal income tax on their first $10,000 of adjusted gross income while joint filers pay the 3% rate on their first $20,000. There is also a 5% tax on income up to $50,000 for single filers and up to $100,000 for joint filers.
Lamont proposed to permanently lower the 5% rate to 4.5% and the 3% rate to 2% beginning with income year 2024. According to a statement released by his office, Lamont insisted some joint filers could receive almost $600 in income tax relief and single filers could save almost $300.
The governor added this will become Connecticut”™s first income tax rate reduction since 1996 and the largest rate reduction since the income tax was implemented in 1991. The full proposal will be made public in Lamont”™s biennial state budget proposal, which will be released on Wednesday.
“Today, Connecticut”™s fiscal health is stronger than it”™s been in decades,” he said. “Considering the state”™s strong financial position, it is time to provide tax relief for Connecticut”™s residents.”
