Budget bill (S.B. 1239), signed May 4 by Connecticut Governor Dan Malloy will increase personal income tax rates for tax year 2011.
The legislation increases marginal income tax rates for those with taxable incomes of more than $100,000 for joint filers; $50,000 for single filers and married filing separately; and $80,000 for heads of households. According to a legislative analysis of the budget, the legislation does so by:
- increasing the number of tax brackets from three to six;
- splitting the existing 5 percent bracket into four brackets and adding three higher marginal tax rates to that taxable income;
- increasing the top marginal income tax rate to 6.7 percent from 6.5 percent;
- and reducing the taxable income for the 6.7 percent rate bracket by half
The measure also phases out the lowest (3 percent) income tax bracket starting with Connecticut adjusted gross incomes of more than $100,500 for joint filers; $56,500 for singles; $78,500 for heads of household; and $50,250 for married couples filing separately. The legislative analysis said it does so by subjecting increasingly less taxable income to the 3 percent income tax rate as Connecticut adjusted gross income increases and moving the phased-out taxable income to the 5 percent bracket.
The Department of Revenue Services plans to have new withholding tables available within a month. Please visit the Connecticut DOR for more information.
September 8, 2011 at 11:37 pm |
for those of you that haven’t heard about this – read up b/c your pay checks are going to see it if you fall in the bracket – no only is there a tax increase but it is retroactive to the beginning of the year.