Retire in Connecticut: 2026 Tax & Cost of Living Guide
High income and estate taxes; meaningful exclusions on retirement income phasing in for lower earners. High property tax is the main retiree cost.
State income tax
Progressive — top rate 6.99%
Social Security
Taxed
Estate tax
Yes
Property tax
1.83%
How Connecticut Taxes Retirement Income
- Social Security
- Exempt below $75K single / $100K joint AGI; phased thereafter
- Public pensions (state/federal)
- Taxed
- Private pensions
- Taxed
- 401(k) / IRA withdrawals
- Taxed
Exemption / exclusion
Up to 100% pension/IRA exemption phasing out for incomes above $75K single / $100K joint (complete by 2025)
What Would You Pay in State Income Tax?
Rough estimates at the top marginal rate (actual effective rate will be lower for most retirees due to brackets, exemptions, and standard deduction):
| Annual Retirement Income | Estimated State Tax | Effective Rate |
|---|---|---|
| $50,000 | $3,495 | 7.0% |
| $100,000 | $6,990 | 7.0% |
| $200,000 | $13,980 | 7.0% |
Estate & Inheritance Tax
State Estate Tax
Exemption: $13,610,000 · Top rate: 12%
Federal estate tax exemption is $13.61M (2024) — Connecticut's lower threshold means more estates are subject to state tax than federal.
We don't have detailed cost-of-living data for a city in Connecticut yet. See our city guides for 300+ other cities worldwide, or compare Connecticut against other US states below.
States With No Income Tax
Compare Against Other States
All 50 US States + DC
Ranked by tax-friendliness for retirees. Grouped by income-tax type.
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Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.