Lamont Wants to Send $200 Tax Rebates to Connecticut Residents

Connecticut Gov. Ned Lamont proposed sending $200 tax rebates to millions of residents, as state lawmakers head to the capitol for the Wednesday start of the legislative session.

Lamont’s plan would send $200 checks to single taxpayers earning no more than $200,000 per year, and $400 rebates to couples filing jointly who earn up to $400,000 annually, according to the state Office of Policy and Management. The change would have to be approved by the General Assembly, the state’s legislative body, as part of the adjustment process to the fiscal 2026 and 2027 biennial budget that concludes May 6.

The one-time rebate would go to an estimated 1.6 million taxpayers and cost the state roughly $500 million, the Office of Policy and Management said. It would be funded through a temporary increase to the state’s volatility cap threshold, the office said.

The volatility cap limits how much revenue from certain tax collections can be used to balance the budget, with receipts in excess of the threshold diverted to a reserve fund each year. The cap was enacted in 2017 to prevent lawmakers from relying too heavily on fluctuating revenue sources.

If approved by state lawmakers, eligible Connecticut residents would receive rebates before the end of the calendar year, according to the Office of Policy and Management. Lamont’s plan was first reported by the CT Mirror.