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SB 182

AN ACT CONCERNING THE PERSONAL INCOME TAX DEDUCTIONS FOR SOCIAL SECURITY BENEFITS.

2026 Regular Session Introduced by Craig Fishbein and 1 co-sponsor

The bill would either fully exempt Social Security benefits from Connecticut personal income tax or keep deductions but require CPI-based adjustments to their qualifying thresholds

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#incometaxdeductions(state) #socialsecurity
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WeVote Research Nonpartisan
Bill Summary · SB 182

Summary of Bill: SB 182 (Connecticut, 2026 Session)

Title

AN ACT CONCERNING THE PERSONAL INCOME TAX DEDUCTIONS FOR SOCIAL SECURITY BENEFITS

Purpose

The bill seeks to modify how Social Security benefits are treated for personal income tax purposes in Connecticut. Specifically, it proposes one of two options:
- Exempt Social Security benefits from the personal income tax for all taxpayers, or
- If not exempted outright, adjust the qualifying income thresholds for personal income tax deductions for Social Security benefits in line with changes in the consumer price index (CPI).

Key Provisions

  1. Amendment to the General Statutes: Section 12-701

    • The bill would amend statute 12-701 to address taxation of Social Security benefits.

  2. Two potential pathways (mutually exclusive in effect, stated as options):

    • Option A — Full Exemption: Exempt Social Security benefits from the Connecticut personal income tax for all taxpayers.
    • Option B — CPI-Adjusted Thresholds (if not exempt): Maintain deductions for Social Security benefits but require that the qualifying income thresholds for these deductions be adjusted in accordance with any changes to the Consumer Price Index (CPI).

  3. Statement of Purpose (as introduced):

    • To exempt Social Security benefits from the personal income tax for all taxpayers, or to ensure that the thresholds for any personal income tax deductions for Social Security benefits are adjusted with CPI changes.

Who Is Affected

  • Taxpayers in Connecticut: All residents who receive Social Security benefits, as well as other taxpayers who might claim deductions related to Social Security benefits under current law, depending on which provision is adopted.
  • State Revenue and Budget: Implications for state revenue collections and administration of the personal income tax if benefits are fully exempted or if deduction thresholds are CPI-adjusted.

Procedural and Timeline Aspects

  • Introduced: February 2026
  • Referral: Referred to the Joint Committee on Finance, Revenue and Bonding for study and consideration.
  • Sponsor Information:
    • Primary Sponsor: Sen. Derek Slap (5th District)
    • Co-sponsors: Sen. Craig Fishbein; (Additional co-sponsorship indicated)

Potential Impacts and Considerations

  • Tax Burden: Full exemption would reduce or eliminate state tax liability on Social Security benefits for all taxpayers, potentially increasing after-tax income for recipients.
  • Administrative Implications: If the CPI-adjusted thresholds approach is used, the state would need to implement automatic annual or periodic CPI-based updates to deduction thresholds, affecting filing complexity and revenue forecasting.
  • Policy Implications: The bill reflects a policy choice to favor Social Security benefits in the tax code, aligning with protections often advocated to preserve retirement income.

Notes

  • The bill is currently at the committee referral stage; no final passage or enacted text is available. The language presents two alternative mechanisms, but the legislative action may ultimately select one approach.
  • LCO No. 1018 is the bill’s identifier for the Legislative Commissioners’ Office drafting.

If you’d like, I can compare this proposal to current Connecticut law on Social Security taxation and provide a concise impact table or scenario-based tax effects under both proposed options.

Compiled from official sources — confirm details with the bill’s official record.

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