CT HB07269

Connecticut residents who rent their primary residence under a lease agreement may deduct a percentage of rent paid from state income taxes for tax years 2026 through 2031

Single filers, married filing separately, or heads of household with income below $75,000 (or joint filers below $125,000) may deduct 50% of rent paid, up to $4,000 maximum

Middle-income taxpayers ($75,000-$100,000 single/$125,000-$150,000 joint) may deduct 35% of rent up to $2,800; higher earners ($100,000-$125,000 single/$150,000-$175,000 joint) may deduct 20% up to $1,600

"Rent" includes utilities, furniture, and parking bundled into rent payments, as well as mobile home or leasehold site rentals, but excludes security deposits, cooperative housing payments, condominium fees, and short-term rentals

Taxpayers must provide documentation to the Commissioner of Revenue Services to substantiate eligibility for the deduction