| Dear Neighbor,
Thousands of low-to-moderate income individuals and families in the state are eligible to receive a significant boost in tax credits when they file their personal income tax returns this year due to a newly enacted rate change in the Connecticut Earned Income Tax Credit (EITC), which has increased from the most recent rate of 30.5% for the 2022 income year to the new rate of 40% for the 2023 income year.
The rate change – which was enacted as a result of the state budget bill that the legislature proposed and Governor Lamont signed into law last year and which also includes several other significant tax relief measures – means that lower-income filers will receive several hundred dollars in additional tax credits this year above what they received the prior year, depending on their income and number of dependents. Typically, more than 95% of filers who receive this credit have families with children.
It is estimated that approximately 211,000 households in Connecticut are eligible.
The Connecticut EITC was created in 2011 and has had varying rates over the last decade, including 30% in 2012, 25% in 2013, 27.5% from 2014 to 2016, 23% from 2017 to 2020, and 30.5% in 2021 and 2022.
This new 40% rate makes Connecticut among the top five states in the nation with the largest EITC rates. |
