Connecticut Income Tax Calculator
The Tax Foundation calls Connecticut’s individual income tax one of the most complex in the nation — and for good reason. No standard deduction, a personal exemption that phases out aggressively, a “tax benefit recapture” for high earners, and seven brackets topping at 6.99%. But IRA distributions are now 75% exempt in 2025 and become 100% exempt in 2026, and military retirement is fully tax-free. This calculator covers the full picture.
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How Connecticut Income Tax Actually Works
Connecticut’s income tax was born out of a budget crisis — Governor Weicker signed the state’s first income tax into law in August 1991, starting with a flat 4.5% rate to close a $963 million deficit. It has evolved into one of the most layered and complex state income tax systems in the country, with seven progressive brackets, a sliding personal exemption that phases out as income rises, and a special “benefit recapture” provision that affects high earners in a way most state tax systems simply don’t have. For 2025, the brackets run from 2% on the first $10,000 of Connecticut taxable income for single filers up to 6.99% on income above $500,000. Both the 2% entry rate and the 6.9% tier below the top are relatively new — Connecticut added them in 2024 to better differentiate tax burdens across the income spectrum.
The standard deduction situation is something out-of-state employers and new Connecticut residents consistently misunderstand: Connecticut does not have a standard deduction. Instead, it uses a personal exemption system with amounts up to $15,000 for single filers and $24,000 for married couples filing jointly — but these maximum amounts are available only at lower income levels. The phase-out is unusually steep: the exemption shrinks by $1,000 for every $1,000 of Connecticut AGI above $30,000 (single) or $48,000 (married filing jointly). A single filer earning $45,000 effectively has no exemption left at all, meaning their Connecticut taxable income approaches their federal AGI minus just the Connecticut-specific subtractions. The benefit recapture provision is equally unique: for filers with Connecticut AGI above $500,000 (single) or $1,000,000 (married filing jointly), Connecticut recalculates the tax so that the top 6.99% rate applies to the entire taxable income — not just the portion above the bracket threshold — effectively eliminating the benefit of all the lower brackets for the highest earners.
The retirement income picture is rapidly improving: Connecticut has been phasing in a series of retirement-friendly tax changes that significantly reduce the burden for retirees. Military retirement pay has been fully exempt since 2022 — zero Connecticut tax, no income limit. Railroad retirement benefits are also fully exempt. For IRA distributions, Connecticut introduced a 75% deduction for the 2025 tax year that increases to a full 100% deduction starting with the 2026 tax year — meaning IRA withdrawals will be completely free of Connecticut income tax in 2026 and beyond. Pension and annuity income (excluding IRAs) is 100% exempt for taxpayers with federal AGI below $75,000 (single) or $100,000 (married filing jointly), phasing out gradually up to $100,000 (single) or $150,000 (joint) where it becomes fully taxable. Connecticut Teachers’ Retirement System income gets a 50% deduction. And Social Security is 100% deductible below the same $75,000/$100,000 AGI thresholds, with a partial deduction above.
Frequently Asked Questions
Connecticut uses seven progressive tax brackets for 2025: 2% on the first $10,000 of taxable income (single), 4.5%, 5.5%, 6%, 6.5%, 6.9%, and 6.99% on income above $500,000 for single filers. Married filing jointly thresholds are double the single amounts. The 2% lowest bracket and the 6.9% bracket were both new additions starting with the 2024 tax year.
No. Connecticut does not have a standard deduction. Instead, Connecticut uses a personal exemption system — up to $15,000 for single filers and $24,000 for married filing jointly — but these amounts phase out aggressively starting at $30,000 of Connecticut AGI (single) or $48,000 (married filing jointly), shrinking by $1,000 for every $1,000 of income above those thresholds.
Partially, starting in 2025. Connecticut allows a deduction of 75% of qualifying IRA distributions from Connecticut taxable income for 2025. This increases to a 100% deduction for the 2026 tax year and beyond. Roth IRA distributions are not eligible for this deduction.
Partially. Connecticut taxpayers with federal AGI below $75,000 (single/MFS/HOH) or $100,000 (married filing jointly) may deduct 100% of their federally taxable Social Security benefits. For incomes above those thresholds, the deduction phases out. At $100,000 AGI (single) or $150,000 (joint), Social Security is fully taxable.
No. Connecticut provides a full exemption for military retirement pay with no dollar cap and no income limit. Railroad retirement benefits are also fully exempt.
Connecticut’s tax benefit recapture is a provision that requires high-income taxpayers — those with Connecticut AGI above $500,000 (single) or $1,000,000 (married filing jointly) — to pay the top 6.99% rate on their entire Connecticut taxable income, not just the portion above the top bracket threshold. This effectively eliminates the benefit of the lower brackets for the highest earners.
Methodology: Calculations use Connecticut’s 2025 seven-bracket income tax schedule (2%–6.99% per Connecticut Department of Revenue Services), a phased personal exemption (max $15,000 single / $24,000 MFJ, reducing by $1,000 per $1,000 of CT AGI above $30,000/$48,000), a 75% IRA distribution deduction (2025), pension/annuity income phase-out exemption (100% below $75k/$100k AGI, phasing to 0% at $100k/$150k AGI), full military retirement exemption, and partial Social Security deduction based on income. Federal calculations use 2025 IRS tax brackets, Child Tax Credit rules, and 2025 Social Security (6.2% to $176,100 wage base) and Medicare (1.45% + 0.9% additional Medicare) rates per IRS.gov. Benefit recapture for incomes above $500,000 (single) / $1,000,000 (MFJ) is approximated; Connecticut permits no local income tax. This tool provides estimates for planning purposes only and is not tax, legal, or financial advice. Last reviewed for accuracy: June 2026.