Gov. Lamont Proposing One-Time Tax Rebate In CT

Gov. Ned Lamont is proposing one-time rebates for Connecticut taxpayers this year.

The tax rebates would be between $200 and $400, depending on filing status and income levels.

Full-year state residents who filed a personal income tax return for the 2024 tax year would be eligible.

The goal is to address affordability, according to the Governor’s office.

“This will help address persistent inflation, rising utility costs, and the on-again, off-again impacts of tariffs that have caused Connecticut residents to pay ever increasing prices for goods and services,” the Governor’s office said, via an emailed statement Tuesday.

Lamont’s office estimated that the rebate would benefit about 1.6 million taxpayers, or 2.2 million individuals, and cost approximately $500 million. He proposes to fund it through a one-time $500 million increase to the volatility cap threshold in fiscal year 2026 only, generating $500 million of resources and transferring the $500 million to fiscal year 2027.

Increasing this threshold would require a three-fifths vote in each chamber of the General Assembly.

If approved by lawmakers, the rebates would be sent by the state Department of Revenue Services to qualifying taxpayers later this calendar year.

Lamont is seeking a third term this coming November. Lamont is expected to discuss the proposal and state budget during a State of the State speech on Wednesday.

House Republican Leader Vincent Candelora, R-North Branford, said in an emailed statement, "Calling the Governor's one-time $200 tax rebate 'underwhelming' is generous.”

“Connecticut faces a full-blown affordability crisis, and the Governor's answer won't even cover half a month's electric bill,” Candelora added. “Residents don't need election-year gimmicks—they need systemic reforms that make our state affordable year after year. The solution is simple: reduce taxes, period."

Eligibility for the proposed rebate would be based on filing status and income level, according to the following table: