Retiring in CT? Tax Checklist

Retiring in Connecticut? This retirement tax checklist covers how CT treats Social Security, pensions and IRA withdrawals, plus the federal rules to know. It's tax information only, not investment advice. Checked November 3, 2026.

For general education only. Not tax, legal, insurance, or investment advice, and not a promise of any result. Tax rules and due dates change, so confirm with the IRS (irs.gov), the CT Department of Revenue Services (portal.ct.gov/DRS) or your town before you act, and ask your tax preparer about your own situation.

What changes for your taxes

Required minimum distributions from IRAs and workplace plans generally start at age 73. Roth IRAs have no RMDs while the owner is alive (IRS).
No more paycheck withholding: retirees often pay through withholding from pensions and IRA payouts, or through quarterly estimates.
Medicare is generally for people 65 or older, so plan health coverage if you retire earlier (Medicare.gov).

What to do before December 31, 2026

To do Check whether you've taken any required distribution for the year.
To do Decide on withholding for pension, annuity and IRA payments, or plan estimated taxes.
To do Gather your final W-2, plus the 1099-R and SSA-1099 forms that will arrive in January.
To do Not 65 yet? Line up health coverage (Access Health CT or COBRA) before job coverage ends.

The Connecticut side

Social Security: fully exempt from CT income tax if federal AGI is under $75,000 (single or married filing separately) or $100,000 (joint or head of household). Above that, no more than 25% is taxable in CT (CT OLR).
Pensions and annuities: 100% exempt if federal AGI is under $75,000 (single, married filing separately or head of household) or $100,000 (joint). The exemption phases out and ends at $100,000 or $150,000, respectively (CT OLR).
IRA distributions (not Roth): the CT deduction is 100% beginning in 2026, with the same income thresholds and phase-out as pensions (CT OLR).
CT withholding on pensions: if you want Connecticut income tax withheld from pension payments, ask your pension payer for Form CT-W4P (CT DRS).
Property tax credit: up to $300 for residents 65 or older, within income limits (CT-1040 instructions).

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Frequently asked questions

Does Connecticut tax Social Security?

Not if your federal AGI is under $75,000 (single or married filing separately) or $100,000 (joint or head of household). Above those amounts, no more than 25% of benefits is taxable in Connecticut.

Are IRA withdrawals taxed in Connecticut?

Beginning in 2026, distributions from non-Roth IRAs get a 100% CT deduction if your federal AGI is under $75,000 ($100,000 joint), with a phase-out above those amounts.

When do I have to start required minimum distributions?

Generally at age 73 for IRAs and workplace retirement plans. Roth IRAs don't require withdrawals while the owner is alive.

Sources (Checked November 3, 2026)

Retiring and want your tax paperwork in order? We can help you plan withholding and estimated payments.

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