Governor Lamont proposes additional tax relief: increase the property tax credit and expand eligibility

Press Release, Feb 18, 2025

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" (HARTFORD, CT) – Governor Ned Lamont today announced that the fiscal year 2026/2027 biennial budget proposal he presented to the Connecticut General Assembly earlier this month includes a recommendation that the state’s property tax credit, which provides a credit to income tax filers for property tax payments made on eligible property, be increased to $350. Additionally, the governor is proposing to expand eligibility for the credit to include more income tax filers.

In total, this change would benefit approximately 800,000 filers and result in $85 million in tax relief. Approximately $60.8 million of that amount (or 71.6%) will benefit filers with an adjusted gross income (AGI) of less than $100,000 per year, and all the relief will benefit filers with an AGI of $160,000 or less.

Since taking office in 2019, Governor Lamont has enacted more than $840 million in permanent tax cuts. This includes $500 million in income tax cuts for middle-class filers that was enacted in 2023 and became the largest income tax cut made in Connecticut history; increases in the Earned Income Tax Credit that have essentially eliminated income taxes for low-income filers; the elimination of taxes on pensions and Social Security for most seniors; and the creation of a cap on motor vehicle property taxes.

'During the last five years, our administration has consistently worked in bipartisan cooperation with the legislature to enact a series of permanent tax cuts to benefit taxpayers in Connecticut, and this year I am asking them to again work with us on additional tax relief measures,' Governor Lamont said. 'Before I became governor, the property tax credit was limited only to seniors and those with dependents, and we changed that law a couple of years ago to remove those restrictions and expand the credit to all adults. This year I am asking the legislature to revisit the property tax credit another time so that we can expand its eligibility again and increase the available credits even further.'

Under the governor’s proposal, single filers earning up to $70,000 and joint filers earning up to $100,000 would qualify for the full $350 credit, with a phase out-schedule for higher incomes. "