What are the tax deductions and credits available in Connecticut?
Connecticut offers a variety of tax deductions and credits to help reduce the overall tax burden for residents. One of the most notable deductions is the property tax credit, which provides relief for those who own property or pay rent in Connecticut. The credit is available to individuals with an income below certain thresholds and is designed to assist with the cost of property taxes.
Additionally, there is a deduction for medical expenses, allowing taxpayers to deduct qualifying expenses that exceed a certain percentage of their adjusted gross income. This can provide significant relief for those with considerable medical costs.
For those who contribute to eligible retirement accounts, Connecticut offers a retirement income exclusion. This allows taxpayers to exclude a portion of their pension and annuity income from state taxation, benefiting retirees seeking to stretch their fixed incomes.
Another important avenue of tax relief is the Earned Income Tax Credit. This credit is designed to assist lower-income working individuals and families, allowing them to claim a refund even if they do not owe any taxes.
Furthermore, Connecticut also provides various credits for businesses, including incentives for hiring new employees and investing in certain economic development projects.
Taxpayers should be aware that eligibility for many deductions and credits may depend on income levels, filing status, and specific circumstances. It is advisable to refer to the Connecticut Department of Revenue Services website for the most current and detailed information regarding available deductions and credits, as well as any updates or changes to tax legislation.

Answered Jun 30th 2025
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