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Connecticut Retirement Income Tax 2025

See how Connecticut treats Social Security, private pensions, annuities, and IRA distributions for a full-year resident, then run the official-source estimate with your own income.

Social Security

Federal taxable Social Security is fully deductible below AGI thresholds; above them, Connecticut taxes at most 25% of total benefits.

Pension and IRA income

Pension/annuity and 75% of IRA income are eligible for an AGI-based subtraction.

012025 STATE RETURN INPUTS
Retirement income by state
For Connecticut, the model subtracts $41,500 of retirement income and estimates $1,483 of 2025 state income tax.

Estimated 2025 state tax

$1,483

Resident return; local taxes and unmodeled credits excluded.

Modeled state taxable income

$38,500

Retirement-income subtraction

$41,500

Federal taxable Social Security is fully deductible below AGI thresholds; above them, Connecticut taxes at most 25% of total benefits.

Pension/annuity and 75% of IRA income are eligible for an AGI-based subtraction.

Scope: Above the AGI threshold, the Social Security Benefit Adjustment Worksheet caps Connecticut-taxable Social Security at 25% of total benefits; the deduction equals the federally taxable amount less that cap.

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Connecticut worked example

For a single filer age 68 with $80,000 of federal AGI, including $15,000 of federally taxable Social Security, $30,000 of pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income:

Retirement subtraction

$41,500

Modeled state taxable income

$38,500

Estimated 2025 state tax

$1,483

This is an illustration, not a tax return. Local taxes, credits, and unmodeled state adjustments are excluded.

What this model does not include

Above the AGI threshold, the Social Security Benefit Adjustment Worksheet caps Connecticut-taxable Social Security at 25% of total benefits; the deduction equals the federally taxable amount less that cap. Review the official instructions before filing.

Review the full Connecticut income tax guide →

Connecticut retirement income tax FAQs

Does Connecticut tax Social Security benefits in 2025?

Federal taxable Social Security is fully deductible below AGI thresholds; above them, Connecticut taxes at most 25% of total benefits.

Does Connecticut tax pensions and IRA withdrawals?

Pension/annuity and 75% of IRA income are eligible for an AGI-based subtraction.

What does the Connecticut retirement tax example include?

The example uses a single filer age 68 with $80,000 of federal AGI, $15,000 of federally taxable Social Security, $30,000 of private pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income.

Is this a complete Connecticut resident return?

No. The estimate focuses on retirement-income treatment and the state rate schedule. It excludes local income tax and does not reproduce every deduction, credit, addition, subtraction, or special pension rule. Above the AGI threshold, the Social Security Benefit Adjustment Worksheet caps Connecticut-taxable Social Security at 25% of total benefits; the deduction equals the federally taxable amount less that cap.

Sources

Related Calculators

Last updated July 27, 2026 Tax year 2025

Data sources: Connecticut DRS Informational Publication 2025(7)

This tool is general information only, not financial advice.

Reviewed by USTax Tools Editorial Desk

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