Does Connecticut tax pensions and retirement income?
Taxed, with a retirement exclusion
Partly. Connecticut has a subtraction for pension, annuity and traditional IRA income for filers below $100,000 of federal AGI ($150,000 for joint filers). Military retirement pay and railroad retirement benefits are fully exempt.
In the state's own words
Copied word for word from the official document linked below each quote:
“If your filing status is single, married filing separately, or head of house hold with federal AGI for the taxable year of less than $100,000 or married filing jointly with federal AGI of less than $150,000, and you receive distributions from certain pensions and annuities, such as from a defined benefit plan, 401(k), 403(b) or 457(b) plans, or distributions from an IRA (other than a Roth IRA), you may qualify for this subtraction modification.”
“Military retirement pay and Tier 1 and Tier 2 railroad retirement benefits are fully exempt from Connecticut income tax, and should not be included in this calculation.”
And Social Security?
Partly. Social Security is fully exempt in Connecticut if your income is under $75,000 (single or married filing separately) or $100,000 (joint, head of household or surviving spouse). Above those amounts, it is only partly exempt. The Connecticut Social Security page quotes the rule.
Federal tax still applies
Whatever Connecticut does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) matter. Check with the Connecticut Department of Revenue Services before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- 2025 Form CT-1040 InstructionsConnecticut Department of Revenue Services. Read on November 12, 2026.