Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right
Tap on the profile icon to edit
your financial details.

Connecticut Retirement Tax Friendliness

Your Details Done

Overview of Connecticut Retirement Tax Friendliness

All types of retirement income are subject to Connecticut’s income tax, although Social Security is exempted for some seniors. The state has a sales tax slightly below the national average and some of the highest property taxes in the U.S.

To find a financial advisor who serves your area, try our free online matching tool.

Enter your financial details to calculate your taxes
Annual Social Security Income
Annual Retirement Account Income
Annual Wages
Year of Birth
Filing Status
Annual Income from Private Pension
Annual Income from Public Pension
You will pay of Connecticut state taxes on your pre-tax income of
Your Tax Breakdown
Total Taxes
Quick Guide to Retirement Income Taxes
is toward retirees.
Social Security income is taxed.
Withdrawals from retirement accounts are taxed.
Wages are taxed at normal rates, and your marginal state tax rate is %.
  • Our Tax Expert

    Jennifer Mansfield, CPA Tax

    Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program. more
Save more with these rates that beat the National Average
Unfortunately, we are currently unable to find savings account that fit your criteria. Please change your search criteria and try again.
Searching for accounts...
Ad Disclosure
Unfortunately, we are currently unable to find savings account that fit your criteria. Please change your search criteria and try again.
Searching for accounts...
Ad Disclosure
Share Your Feedback
How would you rate your experience using SmartAsset’s financial advisor matching service so far?
What is the most important reason for that score? (optional)
Please limit your response to 150 characters or less.
Thank you for your answer! Your feedback is very important to us.

Connecticut Retirement Taxes

Photo credit: ©

There are a lot of reasons a retiree might choose to live in Connecticut. It is spotted with charming New England towns that can offer a peaceful and pleasant lifestyle.

The state experiences four seasons and has plenty of trees that are bursting with green from April through September and with dazzling colors come October. The Connecticut coastline stretches for 100 miles along the Long Island Sound, which keeps wave heights low and perfect for boating. Yet, for seniors who are concerned about their tax bill, Connecticut is among the worst states for retirement.

All types of retirement income are subject to Connecticut’s income tax, although Social Security and some retirement income is exempted for some seniors. The state has a sales tax that's slightly below the national average, though it's property taxes are some of the highest in the nation.

A financial advisor in Connecticut can help you plan for retirement and other financial goals. Financial advisors can also help with investing and financial plans, including taxes, homeownership, insurance and estate planning, to make sure you are preparing for the future.

Is Connecticut tax-friendly for retirees?

Connecticut is among the least tax-friendly states in the U.S. Unlike most other states, all forms of retirement income, including Social Security, are taxable in Connecticut.

There is an exemption for the Social Security retirement benefits of certain seniors. However, Connecticut may not be affordable for many low-income seniors in the first place, in part because of the state’s high property taxes. The median property tax payment here is more than $6,000 per year.

Other taxes that make Connecticut a less-than-ideal destination for seniors include the estate tax, which has an exemption of $9.1 million in 2021.

Is Social Security taxable in Connecticut?

While Social Security income is normally taxed, it is exempted for seniors with adjusted gross income (AGI) below a certain level. Single filers with AGI below $75,000 do not pay taxes on Social Security income. For joint filers, the exemption limit is $100,000. For all other taxpayers, Social Security is taxed along with other sources of income at Connecticut’s normal income tax rates, which are shown in the table in the next section.

Are other forms of retirement income taxable in Connecticut?

Income from public employee pensions, private company pensions and retirement savings accounts are all taxed as regular income.

So, for example, if you are relying on withdrawals from your 401(k) to finance your retirement, keep in mind that you will pay income taxes annually on those withdrawals. Tax rates in Connecticut range from 3.00% to 6.99%, as is shown in the table below.

Income Tax Brackets

Single Filers
Connecticut Taxable IncomeRate
$0 - $10,0003.00%
$10,000 - $50,0005.00%
$50,000 - $100,0005.50%
$100,000 - $200,0006.00%
$200,000 - $250,0006.50%
$250,000 - $500,0006.90%
Married, Filing Jointly
Connecticut Taxable IncomeRate
$0 - $20,0003.00%
$20,000 - $100,0005.00%
$100,000 - $200,0005.50%
$200,000 - $400,0006.00%
$400,000 - $500,0006.50%
$500,000 - $1,000,0006.90%
Married, Filing Separately
Connecticut Taxable IncomeRate
$0 - $10,0003.00%
$10,000 - $50,0005.00%
$50,000 - $100,0005.50%
$100,000 - $200,0006.00%
$200,000 - $250,0006.50%
$250,000 - $500,0006.90%
Head of Household
Connecticut Taxable IncomeRate
$0 - $16,0003.00%
$16,000 - $80,0005.00%
$80,000 - $160,0005.50%
$160,000 - $320,0006.00%
$320,000 - $400,0006.50%
$400,000 - $800,0006.90%

How high are property taxes in Connecticut?

The state’s average effective property tax rate (annual property taxes as a percentage of median home value) is currently 2.14%. Seniors who own a home in Connecticut can expect to spend several thousand dollars a year on property taxes, meaning they should budget accordingly.

What is the Connecticut property tax circuit breaker?

Photo credit: ©

The Connecticut property tax circuit breaker is a credit available to seniors who own and occupy their home in Connecticut. It is worth up to $1,250 for married couples or $1,000 for single filers. To qualify, claimants must be at least 65 years old.

How high are sales taxes in Connecticut?

There’s some good news for seniors in Connecticut here. The state has a single statewide sales tax of 6.35% and no local sales taxes. That means the overall sales tax burden actually rates in the bottom half of U.S. states. Furthermore, groceries in Connecticut are exempt from sales tax.

What other Connecticut taxes should I be concerned about?

Seniors who are planning for the settlement of their estate and intend to bequeath property or wealth to their friends and family should be aware of Connecticut’s estate tax. The exemption for this tax is $9.1 million in 2022, up from $7.1 million in 2021. The tax will not affect any estate with a total value below that amount. Above that amount, however, rates range from 7.8% up to 12%.