Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Connecticut.
April 6, 2026
Connecticut Lawmakers Advance Broad Tax Relief Measures Under “Affordability” Proposal
Authored by: Brian Meier, MSA and Courtney Easterday, MSA
Connecticut legislators are moving forward with a wide‑ranging tax relief proposal to reduce the cost of everyday necessities for residents. Senate Bill 1, known as “An Act Concerning Affordability,” recently cleared the Joint Committee on Finance, Revenue and Bonding and proposes multiple sales and income tax changes beginning later this year. Key provisions include eliminating sales tax on most clothing and footwear priced under $100, certain school supplies, and qualifying energy‑efficient household appliances. Additional relief would extend to prepared foods sold by grocery stores for takeout, such as sandwiches and beverages, later in the year.
The bill also targets income tax relief, particularly for homeowners, vehicle owners, and retirees. It would raise the existing income tax credit for owning a Connecticut home or car and fully exempt Social Security benefits from state income tax, regardless of income level, removing current thresholds that phase in taxation at higher adjusted gross income levels. Supporters, including advocacy groups for older residents, have praised the proposal as a meaningful step toward easing financial pressure and helping retirees remain in their communities, while some lawmakers continue to weigh long‑term fiscal considerations.
If you have questions about state tax changes related to sales tax and personal income tax exemptions, please contact a member of the Withum SALT Team.
April 29, 2024
U.S. District Court Upholds IRS’ Limitation on Charitable Contribution SALT Workarounds
Authored by: Brandon Mejia and Courtney Easterday, MS
In response to the TCJA, several states proposed enacting charitable contribution funds where taxpayers could make a charitable contribution to the state and receive a tax credit in return. In response, the IRS released guidance stating that there is only a charitable contribution to the extent the contribution exceeded the credit received. New Jersey, New York, and Connecticut ultimately sued the IRS, arguing that the IRS’ ruling violated the Administrative Procedures Act. The U.S. District Court of the Southern District of New York determined the IRS’ limitations on charitable contribution workarounds for the SALT cap were reasonable. Furthermore, the Court held that the states did not have standing to sue as none of the litigants established charitable contribution workarounds, and therefore, none could show any injury.
February 12, 2024
Connecticut DRS Extends Filing and Payment Deadlines for Individual and Business Tax Returns
Authored by: Kiana McGowan, CPA, MBA and Jonathan Weinberg, JD, LLM, Principal
The Connecticut Department of Revenue Services is extending the filing and payment deadlines for certain individual and business tax returns to June 17, 2024. These extensions align with the IRS’ extended due dates for taxpayers affected by recent storms and flooding resulting in FEMA disaster designations in parts of the state. If a taxpayer was directly affected by the FEMA designation and is unable to file by the extended deadline, they may contact the DRS to seek relief from any penalties and interest.
Please see TSSB 2024-1 for a list of the impacted returns and payment deadlines.
If you have questions about state disaster relief provisions, please reach out to a member of the Withum SALT Team.
Have Questions or Need Guidance?
For more information on this topic, please contact a member of our team.