Location:
TAXES - INCOME; TAXES - PROPERTY;

OLR Research Report


Connecticut Property Tax Credit

By: Rute Pinho, Principal Analyst

May 16, 2017

|

2017-R-0106

Issue

Explain the property tax credit against the Connecticut state income tax.

Property Tax Credit

Connecticut residents who made qualifying property tax payments on eligible property during the tax year can claim a tax credit against their Connecticut income tax liability for that year. The maximum credit amount is $200 per tax return.

The credit is for property taxes a taxpayer paid to a Connecticut political subdivision (e.g., city, town, or fire district) on a primary residence, privately owned or leased motor vehicle, or both. The credit amount depends on the amount of property tax due and paid and the taxpayer's Connecticut adjusted gross income (CT AGI). The percent of property tax paid that can be taken as a credit declines as CT AGI increases, until it completely phases out. The credit cannot exceed the amount of qualifying property taxes the taxpayer paid or the taxpayer's income tax liability (CGS 12-704c).

Table 1 shows the maximum credit amount for each filing status by CT AGI.

Table 1: Property Tax Credit Amounts by CT AGI for 2016 Tax Year

Single

Married Filing Jointly

CT AGI

Max. Credit

Amount

CT AGI

Max. Credit

Amount

More Than

Less Than or

Equal To

More Than

Less Than or

Equal To

$0

$49,500

$200

$0

$70,500

$200

49,500

59,500

170

70,500

80,500

170

59,500

69,500

140

80,500

90,500

140

69,500

79,500

110

90,500

100,500

110

79,500

89,500

80

100,500

110,500

80

89,500

99,500

50

110,500

120,500

50

99,500

109,500

20

120,500

130,500

20

109,500

and up

0

130,500

and up

0

Married Filing Separately

Head of Household

CT AGI

Max. Credit

Amount

CT AGI

Max. Credit

Amount

More Than

Less Than or

Equal To

More Than

Less Than or

Equal To

$0

$35,250

$200

$0

$54,500

$200

35,250

40,250

170

54,500

64,500

170

40,250

45,250

140

64,500

74,500

140

45,250

50,250

110

74,500

84,500

110

50,250

55,250

80

84,500

94,500

80

55,250

60,250

50

94,500

104,500

50

60,250

65,250

20

104,500

114,500

20

65,250

and up

0

114,500

and up

0

Source: Office of Legislative Research calculations based on Department of Revenue Services' Property Tax Credit Table

Additional Resources

Q&A: Income Tax Credit for Property Taxes Paid to a Connecticut Political Subdivision, Department of Revenue Services (DRS) Informational Publication IP 2016 (18)

DRS 2016 Property Tax Calculator

RP:cym