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.
Assumptions behind this comparison
The ranking uses a full-year resident, single filer age 67, with $30,000 Social Security, $20,000 private defined-benefit pension, $20,000 traditional IRA withdrawals under 2026 rules. It models a general private pension and traditional IRA withdrawals. Public or military pension exceptions, early-distribution penalties and itemized deductions require separate checking. Maryland and Indiana estimates include an approximate statewide-average county income tax; other local income taxes are not modeled. A state with no income tax differs from a state that exempts only specified retirement income.
The joint table uses two spouses age 67, with each income category split equally between them. Personal exclusions follow each spouse's own eligible income; some states instead allow a joint cap. The calculator initially assigns household income to you and lets you enter your spouse's actual age and share. Read the source instructions for your pension type.
The rules in Connecticut
- Social Security: Social Security is fully exempt when federal AGI is below $75,000 for single or married filing separately, or below $100,000 for a joint return, head of household or qualifying surviving spouse. At or above the cutoff, use the official Social Security worksheet: Connecticut taxes up to 25% of the lesser of your gross benefits and the excess of your provisional income over the federal base amount. It never taxes more than your federally taxable benefits.
- Pensions: Pensions, annuities, 401(k) and 403(b) payouts use an income-based deduction with fixed percentage bands. Single filers: 100% below $75,000 of federal AGI, 85% from $75,000, 55% from $80,000, 25% from $85,000, and zero from $100,000, with additional bands between those amounts. Joint filers: 100% below $100,000, 85% from $100,000, 55% from $110,000, 25% from $120,000, and zero from $150,000, with additional bands between. There is no dollar cap. Connecticut Teachers Retirement System pensions have a separate 50% exemption, or the general deduction if larger; the calculator uses the general pension rule.
- 401(k), 403(b) and IRA withdrawals: For tax year 2026, traditional IRA withdrawals are eligible for the same deduction percentages and fixed federal-AGI bands as pensions. The IRA phase-in reached 100% eligibility under state law, but the income bands can still reduce that deduction. Qualified Roth IRA withdrawals are not taxed and should not be entered as taxable income.
Calculate your Connecticut retirement taxes
State income tax in Connecticut: $0 a year
In Connecticut, qualifying employer-plan withdrawals can receive the pension exclusion while traditional IRA withdrawals do not. Keep each account in its own field when changing state; the calculator applies the state-specific treatment.
The employer-plan field supports federally taxable private 401(k) / 403(b) retirement distributions owned by someone aged 60 or older. Earlier distributions and Hawaii, Mississippi or Pennsylvania employer-plan scenarios are not calculated; funding or plan retirement eligibility needs a separate check. Enter each amount once; do not include completed rollovers, Roth payments or special public/military plans.
Older shared links did not identify employer-plan withdrawals separately. Pension and IRA amounts have been left unchanged. If an old amount includes 401(k) or 403(b) withdrawals, move that portion into the employer-plan field before comparing states; the tool cannot infer the original account type.
Household totals include taxable private pensions and traditional retirement withdrawals. Other ordinary income means taxable interest and ordinary dividends; capital gains, qualified dividends, tax-exempt interest, wages, Roth distributions and special public or military pension rules need a separate calculation. Disability and survivor eligibility are not assessed by this tool. Age bands represent the listed ages for the full year; midyear eligibility and birth-date exceptions need checking.
Connecticut estimate does not apply the income-tested personal tax credit in Table E. Your final state income tax after that credit may be lower. Local income taxes are not modeled.
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 traditional IRA withdrawals | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 private defined-benefit pension, $20,000 traditional IRA withdrawals | $0 | $0 | $4,336 |
| $40,000 Social Security, $40,000 private defined-benefit pension, $50,000 traditional IRA withdrawals, $10,000 other income | $5,625 | $4,353 | $19,812 |
Age 67, 2026 rules including the federal senior deduction. For the joint column, income is the household total, both spouses are 67, and each owns 50% of every income category. 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. Social Security is fully exempt when federal AGI is below $75,000 for single or married filing separately, or below $100,000 for a joint return, head of household or qualifying surviving spouse. At or above the cutoff, use the official Social Security worksheet: Connecticut taxes up to 25% of the lesser of your gross benefits and the excess of your provisional income over the federal base amount. It never taxes more than your federally taxable benefits.
Does Connecticut tax pensions?
Partly taxed. Pensions, annuities, 401(k) and 403(b) payouts use an income-based deduction with fixed percentage bands. Single filers: 100% below $75,000 of federal AGI, 85% from $75,000, 55% from $80,000, 25% from $85,000, and zero from $100,000, with additional bands between those amounts. Joint filers: 100% below $100,000, 85% from $100,000, 55% from $110,000, 25% from $120,000, and zero from $150,000, with additional bands between. There is no dollar cap. Connecticut Teachers Retirement System pensions have a separate 50% exemption, or the general deduction if larger; the calculator uses the general pension rule.
Does Connecticut tax 401(k) and IRA withdrawals?
Partly taxed. For tax year 2026, traditional IRA withdrawals are eligible for the same deduction percentages and fixed federal-AGI bands as pensions. The IRA phase-in reached 100% eligibility under state law, but the income bands can still reduce that deduction. Qualified Roth IRA withdrawals are not taxed and should not be entered as taxable income.
Is Connecticut a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 private defined-benefit pension, $20,000 traditional IRA withdrawals, 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), cga.ct.gov (3), portal.ct.gov (2), portal.ct.gov (3). Rules reviewed . Some 2026 amounts were not yet published or sources differed; confirm with the state revenue department.