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SB 70

AN ACT EXEMPTING SOCIAL SECURITY BENEFITS AND PENSION OR ANNUITY INCOME FROM THE PERSONAL INCOME TAX.

2026 Regular Session Introduced by Anne Dauphinais and 3 co-sponsors

Connecticut bill would exempt Social Security and pension income from state personal income tax, reducing retiree taxes but potentially cutting state revenue significantly.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#annuities #incometaxexemptions(state) #pensions #socialsecurity
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Bill Summary · SB 70

Legislative bill overview

SB 70 would exempt Social Security benefits and pension or annuity income from Connecticut's personal income tax. This would apply to all residents receiving these forms of retirement income, regardless of age or income level.

Why is this important

Connecticut currently taxes Social Security benefits and retirement income, making it less competitive for retirees compared to neighboring states like Massachusetts and Rhode Island that exempt Social Security. This bill could affect state tax revenue while potentially making Connecticut more attractive to retirees and reducing tax burden on seniors and pension recipients.

Potential points of contention

  • Revenue impact: Eliminating taxation on these income sources would significantly reduce state tax revenue, requiring either budget cuts or increased taxes elsewhere to maintain services
  • Equity concerns: The exemption would primarily benefit higher-income retirees with substantial pensions, while potentially shifting tax burden to working-age residents and wage earners
  • Definitional scope: "Pension or annuity income" requires precise legal definition to prevent unintended loopholes and ensure consistent application across different retirement vehicles

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

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