Connecticut Elderly and Totally Disabled Homeowners Tax Relief Program

Quick Facts

• What the program does: Provides a state-reimbursed property tax credit—often called the “circuit breaker”—to reduce municipal tax bills for qualifying elderly and disabled homeowners.
• Maximum credit amounts: Married couples can receive up to $1,250 off their annual property tax bill; single homeowners can receive up to $1,000. Actual credit scales down based on income tiers and local mill rates.
• Who administers it: Local assessors process applications, while the Connecticut Office of Policy and Management (OPM) reimburses municipalities for the credits granted.
• Filing window: Applications must be submitted to the local assessor between February 1 and May 15 each year. Once approved, benefits automatically renew for two years before a recertification is required.
• Key documentation: Income statements for the prior calendar year, proof of disability or age, federal tax returns, Social Security 1099s, and any documentation of pensions, interest, dividends, or rental income.

Program Overview

Connecticut’s Elderly and Totally Disabled Homeowners Tax Relief Program was created in 1967 to cushion low- and moderate-income older adults from property tax increases that outpace retirement income. The state labels it a “circuit breaker” because the credit cuts off runaway tax liability when income falls below statutory thresholds. Today, more than 40,000 households participate statewide. Credits are funded by the state, but the front-line interaction remains local: you must visit or mail documents to your town assessor.

Property tax relief is crucial in Connecticut because the state leans heavily on municipal property taxes to fund education and local services. Homes in high-value districts can see annual increases of hundreds of dollars. For homeowners on fixed incomes or living with disabilities, the circuit breaker credit can be the difference between affording medications and slipping behind on taxes. The credit stays attached to the property for one assessment year at a time, so planning, record-keeping, and timely filing are essential.

Unlike standard homestead exemptions that reduce a home’s assessed value, Connecticut’s benefit acts as a direct credit applied to the tax bill. The credit is calculated using statutory income brackets that adjust annually for inflation. Municipal mill rates, which vary widely, also affect the final credit because higher tax rates generate a higher eligible credit before the statutory maximums apply. Understanding how the calculation works allows you to project savings and coordinate with other relief programs such as local-option senior freezes or veterans’ exemptions.

Eligibility Requirements

To qualify, you must meet residence, age or disability, and income criteria.

Residency and Ownership

• You must own your home—either individually, jointly with a spouse, or as a life tenant under a trust—on October 1 of the year before benefits apply.
• The property must be your primary residence. Vacation homes, rental properties, or homes held solely for investment are not eligible.
• Co-ops and mobile homes located on leased land can qualify if you pay property taxes through the park or cooperative entity. Provide proof of the property tax passed through to you.

Age or Disability Status

• Age 65 or older: You meet the age requirement if you turned 65 by December 31 of the prior year.
• Surviving spouse aged 50 or older: If your spouse qualified at the time of death, you may continue to receive relief as long as you are at least 50 and remain in the home.
• Totally disabled: Individuals receiving Social Security Disability Insurance, Supplemental Security Income disability payments, or certain federal/state disability benefits qualify regardless of age. You must provide the annual SSA-1099 or a Benefit Verification Letter.

Income Limits

• OPM publishes income limits annually. For the 2024 grand list year (benefits paid on 2025 bills), limits were $53,400 for married couples and $46,400 for single applicants. Limits include adjusted gross income plus tax-exempt interest.
• Income counts wages, pensions, annuities, rental proceeds, interest, dividends, and taxable Social Security. Non-taxable Social Security is included through the SSA-1099 statement.
• You may subtract Medicare Part B premiums and certain retirement contributions when computing qualifying income. Review the OPM guidance each year.

Benefit Details and Calculation

The credit formula multiplies your property tax by a percentage determined by income bracket. The lower your income, the higher the percentage applied, up to the statutory cap. For example, a single homeowner with $30,000 of qualifying income could receive a credit equal to 50% of their tax bill, capped at $1,000. If their tax bill is $2,400, the credit would be $1,000. A couple with $48,000 in income might receive a 30% credit up to the $1,250 maximum.

Credits apply only to residential property taxes. Sewer assessments, water charges, and special district levies fall outside the program. If your municipality bills semiannually, the credit is split between the July and January installments. You will see a line labeled “Circuit Breaker” or “State Elderly Relief” showing the deduction.

Application Process

1. Gather income documentation: Collect the prior year’s federal tax return (or file Form 1040 if required), SSA-1099 for each household member, 1099-R for pensions, and statements for interest or dividends. If you did not file taxes, complete an affidavit provided by the assessor.
2. Download or pick up Form M-35H: This is the state application. Most towns post it online; you can also request a mailed copy. If you are reapplying, check the pre-filled information for accuracy.
3. Complete the form carefully: Include Social Security numbers, deed information, and details about any co-owners. Indicate whether the property is held in trust. Sign and date the affidavit before a notary if required.
4. Submit to the assessor by May 15: Hand deliver or mail with tracking. Some towns accept email submissions, but original signatures are generally required. Keep copies of everything.
5. Respond to follow-up questions: Assessors may request clarifications, especially for trust-owned homes or unusual income items. Answer promptly to avoid denial.
6. Monitor approval notice: Towns send confirmation letters in late summer. Review the tax bill to ensure the credit appears. If not, contact the assessor immediately.

Documentation Checklist

• Recorded deed or certificate of title showing ownership interest.
• Proof of residency (driver’s license, voter registration, utility bills).
• Prior-year federal and state income tax returns or signed non-filer statements.
• Social Security 1099 forms, pension 1099-Rs, interest 1099-INT, dividend 1099-DIV, and annuity statements.
• Disability proof: SSA Benefit Verification Letter or award notice.
• Trust documents if the property is held in a revocable or irrevocable trust.
• Receipts for Medicare Part B, Part D, or supplemental insurance premiums if you plan to deduct them.

Timeline and Recertification

• Initial application: Must be filed by May 15 in the first year you seek relief.
• Biennial refile: After approval, you generally need to recertify every two years unless your assessor requires annual filings. Watch for a reminder letter.
• Income changes: If your household income exceeds the limit, notify the assessor. The credit will end the following year, but you can reapply if income falls.
• Moving or selling: Credits do not transfer to a new owner. If you move midyear, taxes will be prorated, and you may need to reimburse the buyer for the credited portion during closing.

Coordinating with Other Relief

Connecticut allows stacking of multiple relief programs:

• Local-option freezes: Many towns offer additional senior freezes. Apply separately at the assessor’s office.
• Veterans’ exemptions: Qualified veterans can combine state and local veterans’ property tax exemptions with the circuit breaker credit.
• Tax deferral programs: Municipal deferral programs let seniors postpone taxes until the property is sold. Use the circuit breaker first because it does not create a lien.
• Utility assistance: Pair the tax relief with programs like Operation Fuel or the state energy assistance program to stabilize household expenses.

Strategies to Maximize Savings

1. Project income early: Calculate qualifying income each January. If you are near the threshold, consider delaying IRA distributions or capital gains until a later year.
2. Review property assessment: Ensure your assessed value accurately reflects your property. If assessments increase significantly, appeal during the revaluation cycle to maximize credit impact.
3. Organize paperwork: Keep a binder with yearly statements. Missing documents cause delays.
4. Coordinate with financial planners: Advisors can help manage withdrawals so you remain under the income cap while meeting living expenses.
5. Enroll in automatic Medicare premium deduction: Documented premiums lower income, helping borderline applicants qualify.

Common Pitfalls

• Late filing: Applications received after May 15 are typically denied. Mark your calendar and submit early.
• Underreported income: Failing to include tax-exempt interest or part-time wages can result in retroactive clawbacks. Be transparent to avoid penalties.
• Trust ownership confusion: If your home is in a trust, ensure the trust allows you to live in the property for life. Provide the relevant trust pages.
• Incomplete signatures: Both spouses must sign even if only one meets the age requirement. If incapacitated, provide power of attorney documentation.
• Assuming automatic renewal: Some towns require annual affidavits. Confirm requirements to avoid surprise lapses.

Frequently Asked Questions

Does the program cover condos or mobile homes? Yes, as long as you pay property taxes on the dwelling and it is your primary residence. Provide proof of taxes assessed against your unit or mobile home.

Can renters apply? No. Renters may be eligible for the separate Renters’ Rebate program, which operates on a similar timeline but uses different forms.

Is there an asset test? No. The program looks only at qualifying income, not total assets. However, assets generating income will increase your qualifying income.

What if my spouse is in a nursing home? As long as the spouse is still on the deed and the home remains their legal residence, you can claim as a married couple. Provide documentation of long-term care status if requested.

Additional Resources

• OPM Homeowner Tax Relief Program FAQ
• Contact your local assessor for town-specific forms and deadlines.
• Dial 2-1-1 Connecticut for help locating benefits counselors who can assist with applications.

Staying on top of the Connecticut circuit breaker program requires consistent record-keeping and periodic check-ins with your assessor, but the payoff can be hundreds or even thousands of dollars each year. Treat the benefit as an integral part of your household budgeting, and schedule annual reminders to gather paperwork, review income projections, and coordinate with any other relief programs that can stretch your dollars even further.