CT HB05444

Connecticut personal income tax brackets and adjusted gross income thresholds will be indexed to inflation beginning with taxable years starting January 1, 2028, with annual adjustments thereafter based on the chained consumer price index for all urban consumers (August over August calculation)

Personal exemption amounts and their phase-out income thresholds will also be indexed to inflation starting in 2028, affecting single filers ($12,000 exemption/$24,000 threshold), unmarried individuals ($15,000/$30,000), heads of household ($19,000/$38,000), and married filing jointly ($24,000/$48,000)

All inflation-adjusted amounts will be rounded to the nearest dollar

The bill takes effect October 1, 2026, and amends sections 12-700(a) and 12-702 of the Connecticut general statutes

The indexing mechanism is designed to prevent "bracket creep," where inflation pushes taxpayers into higher tax brackets or reduces the value of exemptions over time