Retiring in Connecticut: how your income is taxed
Connecticut is very tax-friendly for retirees. On a typical retirement income it ranks tied for #1 of 51 with 18 other states for the lowest state income tax.
The rules in Connecticut
- Social Security: Fully exempt if federal AGI is under $75,000 (single or married filing separately) or under $100,000 (joint, head of household or qualifying surviving spouse). Above those limits at least 75% of benefits is still exempt, because Connecticut taxes no more than 25% of them.
- Pensions: All pension and annuity income, including 401(k) and 403(b) payouts, is deductible if federal AGI is under $75,000 (single, married filing separately or head of household) or under $100,000 (joint). The deduction phases out and reaches zero at $100,000 and $150,000 respectively. There is no dollar cap. Connecticut Teachers' Retirement System pensions: 50% is exempt at any income, or the full pension deduction if that is larger. Military retirement pay is handled separately and is fully exempt.
- 401(k), 403(b) and IRA withdrawals: Traditional IRA withdrawals use the same income limits and phase-out as pensions. The deductible share was phased in (25% for 2023, 50% for 2024, 75% for 2025) and reaches 100% for 2026 under state law. 401(k) and 403(b) withdrawals are treated like pensions. Roth IRA withdrawals are not taxed.
Calculate your Connecticut retirement taxes
State income tax in Connecticut: $0 a year
In Connecticut, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In Connecticut you'd pay about $0 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $65,664 (6.2% total).
Connecticut ranks tied for #1 of 51 with 18 other states for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Connecticut
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $0 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $5,625 | $3,154 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply Connecticut's main exclusions and may differ for income-tested credits.
Moving to Connecticut in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Connecticut come from (IRS migration data, 2022–2023).
- New York to Connecticut
- Massachusetts to Connecticut
- Florida to Connecticut
- New Jersey to Connecticut
- California to Connecticut
- Rhode Island to Connecticut
Frequently asked questions
Does Connecticut tax Social Security?
Partly taxed. Fully exempt if federal AGI is under $75,000 (single or married filing separately) or under $100,000 (joint, head of household or qualifying surviving spouse). Above those limits at least 75% of benefits is still exempt, because Connecticut taxes no more than 25% of them.
Does Connecticut tax pensions?
Partly taxed. All pension and annuity income, including 401(k) and 403(b) payouts, is deductible if federal AGI is under $75,000 (single, married filing separately or head of household) or under $100,000 (joint). The deduction phases out and reaches zero at $100,000 and $150,000 respectively. There is no dollar cap. Connecticut Teachers' Retirement System pensions: 50% is exempt at any income, or the full pension deduction if that is larger. Military retirement pay is handled separately and is fully exempt.
Does Connecticut tax 401(k) and IRA withdrawals?
Partly taxed. Traditional IRA withdrawals use the same income limits and phase-out as pensions. The deductible share was phased in (25% for 2023, 50% for 2024, 75% for 2025) and reaches 100% for 2026 under state law. 401(k) and 403(b) withdrawals are treated like pensions. Roth IRA withdrawals are not taxed.
Is Connecticut a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, Connecticut charges about $0 in state income tax, ranking tied for #1 of 51 with 18 other states (lowest tax first).
Related
Sources: portal.ct.gov, cga.ct.gov, cga.ct.gov (2). Rules reviewed . Some 2026 amounts were not yet published or sources differed; confirm with the state revenue department.