When you’re planning for retirement, one of your many questions will probably be: Will I pay Connecticut income tax on my Social Security benefits?
If you live in Connecticut, the answer isn’t a simple yes or no. Connecticut is often listed as one of the states that taxes Social Security benefits, but in reality, many retirees don’t pay state taxes on their benefits. Let’s clear up how it works — and how our state compares to others.
❓ What is Social Security?
Social Security is a federal program funded by payroll taxes (FICA). It provides monthly income to retirees, people with disabilities, and the spouses or dependents of deceased workers.
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Does Connecticut Still Tax Social Security?
The short answer is: Yes, Connecticut taxes Social Security, but it depends on your income.
- If your federal Adjusted Gross Income (AGI) is below $75,000 (single or married filing separately) or $100,000 (married filing jointly), Connecticut does not tax your Social Security benefits.
- If your AGI is above those thresholds, a portion of your Social Security benefits may be included in your Connecticut taxable income.
So while Connecticut gets put on the list of “states that tax Social Security,” the reality is that many retirees in our state won’t have their benefits taxed.
💡 Tip: You may still pay taxes in retirement, regardless of your income. Even if your Social Security benefits aren’t taxed in Connecticut, other retirement income — like pensions, IRA withdrawals, or investment earnings — could be.
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How Connecticut’s Social Security Rules Have Changed Over Time
Historically, Connecticut hasn’t been very retiree-friendly when it comes to Social Security. Before 2015, more retirees paid state tax on their benefits because income limits were lower and there were no broad exemptions.
In 2015, the state began phasing in exemptions, starting with a partial deduction of Social Security benefits for lower- and moderate-income retirees. The exemption percentage increased over time, and by 2019, Social Security benefits became fully exempt for filers with a federal AGI under $75,000 (single) or $100,000 (joint).
Connecticut has also expanded exemptions for other types of retirement income, like pensions and annuities, which became fully exempt for qualifying filers starting in 2022.
Why Is Connecticut Still Considered a State that Taxes Social Security?
Connecticut is still listed as a state that taxes Social Security because some retirees with higher incomes may still pay a state tax. But with today’s exemptions, many Connecticut households don’t owe state income taxes on these benefits.
❓ Does Connecticut tax Social Security?
Technically, yes — but many retirees don’t end up having to pay it. In Connecticut, Social Security benefits are fully exempt from state income tax if your adjusted gross income is below $75,000 for single filers or $100,000 for joint filers.
📌 Read our blog post – Should You Wait to Start Your Social Security Benefits?
How Does Social Security in Connecticut Compare to Other States?
If you’re thinking about retirement, it’s natural to compare Connecticut with nearby states — or with popular “snowbird” destinations. Here’s how some other states stack up:
- Massachusetts & New York: Both have state income taxes, but Social Security benefits are fully exempt for all retirees, regardless of income.
- Rhode Island & Vermont: Like Connecticut, these states use income thresholds. Retirees with lower or moderate incomes generally don’t pay tax, while higher earners may see part of their benefits taxed — though the income limits differ by state.
- Florida & New Hampshire: Neither state has an income tax, which means Social Security — and all other retirement income — is not taxed.
Across the country, around a dozen states tax Social Security in some form, and Connecticut has become more favorable to retirees compared to past years, especially for those with moderate incomes.
❓ What is the best state for Social Security?
There isn’t one “best” state for Social Security benefits — while taxes matter, your income, lifestyle, housing costs, healthcare, and even being close to family often matter more when making retirement decisions.
Social Security and Retirement Planning in Connecticut
Knowing how Connecticut handles Social Security is important, but it’s only one part of your retirement plan. Healthcare, housing, and long-term care costs can matter just as much — sometimes more.
If you’re approaching retirement in Connecticut, schedule a complimentary introductory meeting with our team in Glastonbury or Wilton, CT, to see how Social Security fits into your retirement income plan.
Have a quick question instead? Send us a note.
Jordan Hickey is a CERTIFIED FINANCIAL PLANNER® professional who helps clients create personalized financial plans. Based in Glastonbury and Wilton, CT, Jordan offers guidance on retirement, insurance, investments, and overall wealth management. Schedule a complimentary introductory meeting with Jordan.
This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete, it is not a statement of all available data necessary for making an investment decision and it does not constitute a recommendation. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Any opinions are those of the author, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.