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Premium Tax Credit (ACA) in Connecticut 2026

Calculate your premium tax credit (aca) tax savings in Connecticut. With Connecticut's 6.99% top state tax rate, your combined savings are higher.

Connecticut Tax Overview

State Income Tax
6.99%
progressive
Sales Tax
6.35%
avg combined: 6.35%
Property Tax Rate
1.96%
Median Income
$90,213

No standard deduction. Estate tax. Very high property taxes (1.96%).

Connecticut Income Tax Brackets (Single)

3%
$0 - $10,000
5%
$10,000 - $50,000
5.5%
$50,000 - $100,000
Your bracket
6%
$100,000 - $200,000
6.5%
$200,000 - $250,000
6.9%
$250,000 - $500,000
6.99%
$500,000 +
$5,000
Est. Total Savings
No Limit
Max Deduction
Tax Credit
Deduction Type
27.5%
Combined Tax Rate

Premium Tax Credit (ACA) Savings Calculator for Connecticut

$
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Federal Savings

$5,000

22% bracket

Connecticut State

$0

5.5% rate

Total Savings

$5,000

27.5% combined

Tax credits reduce your tax bill dollar-for-dollar, regardless of your tax bracket.

Savings by Tax Bracket in Connecticut

10%
$5,000
12%
$5,000
22%
$5,000
24%
$5,000
32%
$5,000
35%
$5,000
37%
$5,000

Includes 5.5% Connecticut state tax on top of federal savings.

Eligibility Requirements

Individuals who purchased health insurance through the ACA Marketplace

  • 1Household income 100-400% of federal poverty level
  • 2Not eligible for employer coverage or Medicare
  • 3Purchased through Healthcare.gov or state exchange

Connecticut residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 6.99%.

Common Mistakes to Avoid

  • !Not reconciling advance payments at tax time
  • !Forgetting to report life changes that affect eligibility
  • !Not filing Form 8962 and losing the credit
  • !Forgetting to claim the deduction on your Connecticut state return (missing up to 6.99% additional savings)

Connecticut Filing Tips

Personal exemption credits phase out at higher incomes. A 'recapture' tax can push effective rates above stated brackets. Consider the high property tax when evaluating total cost of living.

Required Tax Forms

Form 8962Form 1095-A

File these forms with your federal tax return to claim the premium tax credit (aca). Connecticut may require additional state-specific forms.

Other Tax Deductions in Connecticut

Medical & Dental Expenses

Medical

~$3,750
est. savings

Self-Employed Health Insurance

Medical

~$6,250
est. savings

HSA Contribution Deduction

Medical

~$2,250
est. savings

Long-Term Care Insurance

Medical

~$2,500
est. savings

Medical Travel Expenses

Medical

~$1,000
est. savings

Flexible Spending Account (FSA)

Medical

~$1,125
est. savings

Medical Equipment & Devices

Medical

~$1,875
est. savings

Therapy & Counseling

Medical

~$2,500
est. savings

Premium Tax Credit (ACA) in Neighboring States

New York

10.9% top rate (progressive)

~$6,800
+1,800 vs Connecticut

Massachusetts

5% top rate (flat)

~$6,800
+1,800 vs Connecticut

Rhode Island

5.99% top rate (progressive)

~$6,800
+1,800 vs Connecticut

Tax Calculators for Connecticut Cities

BridgeportStamfordNew HavenHartfordWaterburyNorwalkDanburyNew BritainWest HartfordGreenwich

Calculate Your Full Tax Savings in Connecticut

Use our free tax calculators to optimize your entire tax return for Connecticut.

Income Tax CalculatorConnecticut Income TaxFull Premium Tax Credit (ACA) Guide

Frequently Asked Questions

How much can I save with the Premium Tax Credit (ACA) in Connecticut?

In Connecticut, the premium tax credit (aca) can save you an estimated $5,000 per year on a $5,000 deduction. This includes $5,000 in federal tax savings and $0 in Connecticut state tax savings at the 5.5% marginal rate. The national average savings is $6,800/year.

What is the Connecticut state income tax rate?

Connecticut has a progressive income tax system with a top rate of 6.99%. No standard deduction. Estate tax. Very high property taxes (1.96%).

Who qualifies for the Premium Tax Credit (ACA) in Connecticut?

Individuals who purchased health insurance through the ACA Marketplace. The eligibility requirements are the same whether you live in Connecticut or another state, as this is a federal tax credit. However, your total savings will vary based on Connecticut's 6.99% top state tax rate.

What tax forms do I need to claim the Premium Tax Credit (ACA) in Connecticut?

To claim the premium tax credit (aca), you need to file Form 8962 and Form 1095-A with your federal return. Connecticut residents should also check if the state allows this deduction on their state return for additional savings of up to 6.99%. Filing status affects your deduction limits and tax bracket.

Is the Premium Tax Credit (ACA) better in Connecticut than in states without income tax?

Yes, Connecticut residents benefit more because the state's 6.99% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 27.5% means more savings per dollar deducted.

What is the standard deduction in Connecticut for 2026?

Connecticut's standard deduction is $0 for single filers and $0 for married filing jointly. Personal exemption credits phase out at higher incomes. A 'recapture' tax can push effective rates above stated brackets. Consider the high property tax when evaluating total cost of living.

Related Calculators

Medical & Dental Expenses in Connecticut

Avg savings: $3,000/year

Self-Employed Health Insurance in Connecticut

Avg savings: $5,000/year

HSA Contribution Deduction in Connecticut

Avg savings: $1,800/year

Long-Term Care Insurance in Connecticut

Avg savings: $2,000/year

Medical Travel Expenses in Connecticut

Avg savings: $800/year

Flexible Spending Account (FSA) in Connecticut

Avg savings: $900/year