New DataHaven Report Reveals Unequal Impact of H.R. 1 Tax Relief in Connecticut

A new DataHaven report has town-by-town interactive maps showing how tax policy changes in the “One Big Beautiful Bill” will impact families in Connecticut:

-Statewide, the top 25% of households by income will receive nearly $10K each in tax relief (a total gain of $3.4 billion every year), with much of that going to the top 2%.

-The middle 50% of households receive $1,800 each on average.

-Households in the bottom 25% lose an average of $417 each (a total loss of $148 million), due to changes in programs such as SNAP and Medicaid. For families currently receiving those benefits, the negative impacts could be even greater.

-The estimates in our new report do not account for cost increases from tariffs, which the Yale Budget Lab projects will cause a $1,900 to $7,600 loss in disposable income for an average household each year.

What does this look like for your area?

-In Greenwich (as well as in Darien, New Canaan, and Westport), the top 25 percent of households by income receive annual tax relief of more than $30,000 each, on average. Meanwhile, households at the bottom 25% of Greenwich’s income distribution lose an average of $30 each.

-Households in West Hartford collectively see $121 million per year in tax relief – a gain of $4,600 per household on average. Meanwhile, in the neighboring city of Hartford, households collectively see only $36 million in tax relief, or just $700 per household on average. The bottom 25 percent of households within Hartford collectively lose $14.4 million per year, a loss of $1,200 each.

-In the City of New Haven, the top 25% of households get $6,200 each, middle-income households get $500 each, and the bottom 25% of households in the city each lose $1,100 per year, on average. In neighboring Woodbridge, the average household sees $7,700 in tax relief.

-In the Greater New London (SECOG) region, households in the top 25 percent of that region’s income distribution collectively gain $184 million in annual tax relief. At the same time, households in the bottom 25 percent collectively lose $14.1 million per year – with about $6 million of that loss impacting families in Norwich and New London.

“Like DataHaven’s widely-used reports that have mapped the communities where over 150,000 Connecticut adults are projected to lose healthcare coverage and food assistance due to H.R. 1, this new report again reminds us that policy changes can have dramatic impacts at the local level,” said Mark Abraham, Executive Director at DataHaven. “Overall, Greenwich sees around $262 million in tax relief, while Bridgeport (a city more than twice the size) gets $60 million total — but with low-income households within Bridgeport losing over $14 million collectively, each year.”

The new report notes that even if H.R. 1 were repealed, these impacts on wealth inequality would remain. In Connecticut, growing wealth inequality is linked to wide gaps in the quality of public spaces, life expectancy differences, and the worsening of housing affordability and homelessness in the state.

The new report has interactive maps and downloadable data for every Connecticut town and county equivalent area. Please help us share it with your colleagues and neighbors who care about economic and fiscal issues in Connecticut (https://ctdatahaven.org/taxrelief2025).