Work from home? A new state law could save you thousands of dollars in taxes

Connecticut residents pay New York state income taxes – even when they work from home. Now, they could get a big tax break to sue New York over the law.

John Craven

Jun 24, 2025, 9:22 PM

Updated 5 hr ago

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On a scorching hot week like this, people across Connecticut are working from home.
If you’re one of them, you might be paying too much in taxes – to the wrong state.
But newly passed legislation could change that – and save you thousands of dollars.
REMOTE WORKERS PAY EXTRA
Jason Rubin is working from home in Ridgefield to avoid the 100-degree heat.
But since his law office is in Manhattan, Rubin has to pay income taxes to New York – even on days when he’s not there.
It costs Rubin and other remote workers thousands of dollars a year.
“The rates are higher in New York than they are in Connecticut,” he said.
INCENTIVE TO SUE NEW YORK
Connecticut lawmakers think New York’s “convenience of employer" law is unconstitutional. Now, they’re offering taxpayers a big tax break to challenge it.
“Work-from-home is becoming a lot more common, but the policies have not been updated in a fair manner for the state of Connecticut,” said state Sen. Ryan Fazio (R-Greenwich), who sponsored the legislation. “So we passed Senate Bill 1558 in order to create an avenue for individuals to sue, and hopefully be victorious, against the state of New York in court.”
If a court overturns New York’s law, remote workers would instead pay Connecticut for days they work from home – at a lower tax rate.
To encourage taxpayers to sue, the state will shave 60% off whatever back taxes they would now owe Connecticut.
“New York has been engaged in, frankly, thuggery over the last ten years of reaching across state lines and grabbing into the pocketbooks of the working men and women of this state,” said Department of Revenue Services commissioner Mark Boughton. “It costs us $400 million a year in lost revenue.”
Gov. Ned Lamont is expected to sign the bill when it reaches his desk.
WHO BENEFITS?
For Rubin, the tax savings aren’t enough to take on the legal challenge himself. But if someone else is successful, Rubin and other remote workers across Connecticut could save thousands of dollars on their income taxes.
“It would probably cost more to fight their tax bill than what their tax bill actually is. But I would imagine for higher earners, it would really be something they would be interested in pursuing,” he said. “At the end of the day, if it works for the higher income earners, it will trickle down to the lower income people as well.”
NOT JUST CT
New Jersey recently passed a similar law encouraging remote workers to sue.
“I personally want the money to go to New Jersey," New Jersey tax attorney Open Weaver Banks told News 12 in 2024. "And I know New York’s law is wrong.”
Here in Connecticut, a New Haven taxpayer is already suing the state of New York. That case is pending.
The U.S. Supreme Court declined to hear a similar lawsuit brought by the state of New Hampshire against Massachusetts, allowing the Bay State to continue taxing out-of-state remote workers.
New York state leaders did not respond to multiple requests for comment.