Does Connecticut tax Social Security benefits?

Connecticut fully exempts Social Security benefits if your federal AGI is below 75,000 dollars (single) or 100,000 dollars (married filing jointly). Above those thresholds, up to 25 percent of the federally taxable portion of your benefits is added to Connecticut income.

How does the Connecticut pension and annuity exclusion work?

Connecticut allows taxpayers under the same 75,000 and 100,000 dollar AGI limits to exempt 100 percent of qualifying pension and annuity income. The exclusion phases out above those thresholds, so higher-income retirees may owe tax on part of their pension.

Are 401(k) and IRA withdrawals taxed in Connecticut?

Yes, distributions from traditional 401(k) and IRA accounts are generally taxable as ordinary income in Connecticut. Connecticut is phasing in an exemption for IRA distributions, but for most retirees these withdrawals are still subject to the state's graduated income tax.

What income tax rates does Connecticut use?

Connecticut uses a graduated income tax with brackets from 2 percent up to 6.99 percent. This calculator applies the single-filer or joint-filer bracket schedule to your Connecticut taxable income after the retirement exemptions are applied.

Is this calculator a substitute for tax advice?

No. It is an educational estimate using simplified thresholds and rates. Connecticut's phase-outs, recapture provisions, and the gradual IRA exemption are complex, so confirm your figures with the Connecticut DRS or a tax professional before filing.

Connecticut Retirement Income Tax Calculator

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Connecticut gives retirees meaningful breaks but does not fully exempt all retirement income. Whether your Social Security and pension are taxed depends mainly on your federal adjusted gross income (AGI). This tool models the Social Security exemption, the pension and annuity exclusion, and the taxable treatment of 401(k) and IRA withdrawals.

How it works

Connecticut bases its retirement exemptions on AGI thresholds of 75,000 (single) and 100,000 (married filing jointly):

if AGI < threshold:
    Social Security taxable in CT = 0
    pension/annuity taxable in CT = 0
else:
    Social Security: up to 25% of federally taxable benefits counts
    pension/annuity: exclusion phases out
401(k)/IRA distributions: taxable as ordinary income

Connecticut taxable income is then run through the graduated bracket schedule (2% to 6.99%) for your filing status to produce the estimated state tax.

Example and notes

A single retiree with AGI of 60,000, 20,000 in Social Security, 25,000 in pension income, and 15,000 in 401(k) withdrawals sits below the 75,000 threshold: Social Security and pension are exempt, so only the 15,000 withdrawal is taxed. Above the threshold, part of the Social Security and pension becomes taxable. These figures are estimates — Connecticut is phasing in an IRA-distribution exemption and applies recapture rules at higher incomes, so verify with the Connecticut Department of Revenue Services.