CT
Static Conformity — Needs Legislation
6.99%
Top state income tax rate
high
SALT deduction impact
OBBBA in Connecticut: What You Need to Know
Connecticut uses static conformity and must pass legislation to conform. High-income state means SALT cap increase provides significant federal benefit. State conformity decision pending.
OBBBA Provision Impact for Connecticut Residents
| OBBBA Provision | Federal Impact | CT State Impact |
|---|---|---|
| Tip Income Exemption ($25k) | ✅ Exempt from federal income tax | ⚠️ Still taxed at 6.99% until state acts |
| Overtime Exemption | ✅ All OT exempt from federal tax | ⚠️ Still taxed at state level |
| SALT Cap ($40k married) | ✅ Deduct up to $40k on federal return | 🔴 High benefit — high state/property taxes |
| Child Tax Credit ($2,500) | ✅ Federal CTC expanded | No direct state effect |
| Senior Deduction ($4,000) | ✅ Additional $4k deduction | ⚠️ Likely not adopted |
| Trump Accounts | ✅ $1,000 federal seed + tax-free growth | Federal program — state tax treatment varies |
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