Connecticut SB 510: AN ACT ESTABLISHING A CAPITAL GAINS SURCHARGE.

Bill Text

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General Assembly  
Substitute Bill No. 510  
February Session, 2026 
 
 
 
 
 
AN ACT ESTABLISHING A CAPITAL GAINS SURCHARGE.  
Be  it  enacted  by  the  Senate  and  House  of  Representatives  in  General 
Assembly convened: 
 
Section   1.   (NEW)   (Effective   from   passage)   (a) For   taxable   years 1 
commencing on or after January 1, 2027, there is imposed a surcharge 2 
on a taxpayer, excluding trusts or estates, whose Connecticut adjusted 3 
gross  income  is  equal  to  or  greater  than  (1)  one  million  dollars  for  an 4 
individual  who  files  a  return  under  the  federal  income  tax  as  an 5 
unmarried individual or a married individual filing separately, (2) one 6 
million  six  hundred  thousand  dollars  for  an  individual  who  files  a 7 
return under the federal income tax as a head of household, and (3) two 8 
million  dollars  for  individuals  who  file  a  return  under  the  federal 9 
income tax as married individuals filing jointly. Such surcharge shall be 10 
at the rate of one and seventy-five-hundredths per cent of the net gain 11 
from  the  sale  or  exchange  of  capital  assets,  as  determined  for  federal 12 
income tax purposes. The surcharge shall be in addition to any other tax, 13 
fee  or  surcharge  for  which  the  taxpayer  is  liable,  except  that  any  such 14 
taxpayer shall be allowed a one-time exclusion for the net gain from the 15 
sale of the taxpayer's primary residence in the state or from the sale of 16 
the taxpayer's ownership interest in a business. 17 
(b) Each taxpayer subject to the surcharge shall file a report with the 18 
Commissioner  of  Revenue  Services,  in  such  form  and  containing  such 19 

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information  as  the  commissioner  prescribes,  on  or  before  the  fifteenth 20 
day  of  the  fourth  month  following  the  close  of  the  taxpayer's  taxable 21 
year.  Such report shall  accurately  set  forth  the  amount  of  the  net  gain 22 
calculated  pursuant  to  subsection  (a)  of  this  section  for  the  preceding 23 
taxable  year  and  the  amount  of  the  taxpayer's  surcharge  liability  for 24 
such year. A taxpayer required to file a report shall, without assessment, 25 
notice or demand, pay any surcharge due thereon to the commissioner 26 
on  or  before  the  date specified  in  this  subsection,  determined  without 27 
regard to any extension of time for filing the report. 28 
(c)  If  any  person  fails  to  pay  the  amount  of  the  surcharge  reported 29 
due  on  a  report  within  the  time  specified,  there  shall  be  imposed  a 30 
penalty equal to ten per cent of such amount due and unpaid, or fifty 31 
dollars, whichever is greater. Such amount shall bear interest at the rate 32 
of one per cent per month or fraction thereof, from the due date of such 33 
surcharge until the date of payment. Subject to the provisions of section 34 
12-3a of the general statutes, the commissioner may waive all or part of 35 
the  penalties  provided  under  this  section  when  it  is  proven  to  the 36 
commissioner's  satisfaction  that  the  failure  to  pay  any  surcharge  was 37 
due to reasonable cause and was not intentional or due to neglect. 38 
(d) The provisions of sections 12-550 to 12-554, inclusive, and section 39 
12-555a  of  the  general  statutes  shall  apply  to  the  provisions  of  this 40 
section in the same manner and with the same force and effect as if the 41 
language of said sections had been incorporated in full into this section 42 
and had expressly referred to the surcharge under this section, except to 43 
the  extent  that  any  provision  is  inconsistent  with  a  provision  in  this 44 
section. 45 
This act shall take effect as follows and shall amend the following 
sections: 
 
Section 1 
from passage 
New section 
 
Statement of Legislative Commissioners:   
In   Section   1(b),   "such   return"   was   changed   to   "such report"   for 
consistency. 

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FIN Joint Favorable Subst.