Military retirement pay in Connecticut
Varies
Does Connecticut Tax Military Retirement Pay?
Short answer: No. Connecticut fully exempts armed forces retirement pay from state income tax (100% exemption since tax year 2023). Connecticut's FY2027 budget (SB 1, signed May 26, 2026) extends the exemption to retired U.S. Public Health Service officers; NOAA Corps retirees are not included, according to MOAA. Other retirement income: Pension and annuity income is 100% deductible if AGI is under $75,000 (single) or $100,000 (joint), phasing out to zero at $100,000/$150,000. IRA distributions get the same deduction on the same phase-out (75% in 2025, 100% from 2026).
Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Military retirement pay in Connecticut
Varies
Individuals / Personal Taxes
No. Connecticut fully exempts armed forces retirement pay from state income tax (100% exemption since tax year 2023). Connecticut's FY2027 budget (SB 1, signed May 26, 2026) extends the exemption to retired U.S. Public Health Service officers; NOAA Corps retirees are not included, according to MOAA. Other retirement income: Pension and annuity income is 100% deductible if AGI is under $75,000 (single) or $100,000 (joint), phasing out to zero at $100,000/$150,000. IRA distributions get the same deduction on the same phase-out (75% in 2025, 100% from 2026).
Business justification
No. Connecticut fully exempts armed forces retirement pay from state income tax (100% exemption since tax year 2023). Connecticut's FY2027 budget (SB 1, signed May 26, 2026) extends the exemption to retired U.S. Public Health Service officers; NOAA Corps retirees are not included, according to MOAA. Other retirement income: Pension and annuity income is 100% deductible if AGI is under $75,000 (single) or $100,000 (joint), phasing out to zero at $100,000/$150,000. IRA distributions get the same deduction on the same phase-out (75% in 2025, 100% from 2026). Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions