Partly taxed
How Connecticut taxes retirement income
Connecticut’s retirement tax breaks depend on your income. Single filers with federal adjusted gross income under $75,000, and joint filers under $100,000, pay no Connecticut tax on Social Security, pensions, annuities or traditional IRA withdrawals. The IRA exclusion finished phasing in for 2026.
Above those lines, the breaks shrink. For pensions, annuities and IRA withdrawals, the exclusion phases out until it is gone at $100,000 of income for single filers and $150,000 for joint filers. For Social Security, higher-income retirees still never pay Connecticut tax on more than 25% of their benefits.
Retired teachers have an extra option. Connecticut lets you deduct 50% of your Teachers’ Retirement Board pension, which helps teachers whose income is too high for the full pension exclusion. Military retired pay and Railroad Retirement benefits are fully exempt at any income.
Questions
Does Connecticut tax teacher pensions?
Not if your income is under $75,000 (single) or $100,000 (joint). Above that, teachers can deduct at least 50% of their TRB pension.
Does Connecticut tax IRA withdrawals?
For 2026, traditional IRA distributions are fully exempt for single filers under $75,000 and joint filers under $100,000, with a phase-out above.
Does Connecticut tax Social Security?
Not under $75,000 single or $100,000 joint income. Above that, at most 25% of benefits is taxed.