The Tax Brief real effective rates for 111+ countries — bi-weekly, free.
HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Connecticut VS COUNTRY B Florida

Side-by-side analysis of income tax, effective rates, and take-home pay for Connecticut and Florida in 2026.

Daniel · CountryTaxCalc Updated September 2026 Income tax verified October 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Connecticut's reputation as a high-tax state for retirees is increasingly out of date for anyone under a fairly generous income threshold. Social Security has long been exempt below $75,000 AGI (single) or $100,000 (married filing jointly), and pension income got the same treatment — and starting with the 2026 tax year, IRA distributions finally complete a multi-year phase-in to join that same 100% exemption, up from 75% in 2025. Below those thresholds, a Connecticut retiree can genuinely owe close to $0 in state tax, the same as Florida. The exemption phases out gradually above the threshold and disappears completely by $100,000 AGI (single) or $150,000 (married) — above that point, Connecticut taxes retirement income at its regular graduated rates, up to 6.99%, and the comparison to Florida starts to look much more like the standard high-tax-state story.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.

🏠
COUNTRY A
Connecticut
TAX RATE
0%-6.99%
Mostly Exempt Below $75K-$100K AGI

Social Security, pensions, and IRA distributions are 100% exempt for taxpayers under $75,000 AGI (single) / $100,000 (married) — the exemption phases out completely by $100K/$150K

🏖️
COUNTRY B
Florida
TAX RATE
0%
No Income Tax

No state income tax — all retirement income is completely exempt regardless of amount

TYPICAL ANNUAL DIFFERENCE
Moving from Florida → Connecticut at $50,000-$100,000 retirement income (single filer)
$0-$4,900+

That's Up to ~$408/month for higher-income retirees above the exemption threshold back in your pocket

Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.

GROSS INCOME
🏠 CT TAX
🏖️ FL TAX
SAVINGS
10-YEAR
$50,000 (single, under $75K threshold)
$0 — fully exempt (Social Security, pension, and IRA all under the $75,000 AGI threshold)
$0
Tie — both $0
$0
$80,000 (single, in the phase-out zone)
~$100 (exemption partially phased out — only ~$2,500 of income becomes taxable at this level)
$0
FL saves ~$100/yr
$1,000
$100,000 (single, exemption fully phased out)
~$4,900 (fully taxed at CT's graduated rates)
$0
FL saves ~$4,900/yr
$49,000
💡

CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools.Learn more about our affiliate partnerships

Talk to a CPA

Taxhub

★ 4.8verified reviews  ·  3,758 reviews

Retiring? Get CPA help optimizing Social Security + pension taxes.

⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.

Get Matched →

Interested in reaching this audience? Advertise on CountryTaxCalc →

🏠

Connecticut Pros & Cons

+ PROS
  • Social Security, pensions, and IRA distributions are 100% exempt below $75,000 AGI (single) / $100,000 (married filing jointly) — a genuinely generous threshold that covers many retirees entirely
  • IRA distributions completing their exemption phase-in for 2026 is new and often-overlooked — a Connecticut retiree living on IRA withdrawals under the threshold pays $0 state tax on them, the same as if they'd moved to Florida
  • Above the exemption, the phase-out is gradual (not a hard cliff) — a small amount over the threshold doesn't suddenly expose your entire retirement income to tax
  • Strong healthcare access, proximity to New York City and Boston, and New England's four-season climate for retirees who value that over Florida's year-round heat
− CONS
  • The exemption disappears completely above $100,000 AGI (single) / $150,000 (married) — high-income retirees get no special break and pay Connecticut's regular graduated rates, up to 6.99%
  • Connecticut has some of the highest property taxes in the country (statewide average ~1.54%, third-highest in the US) — a real ongoing cost even for retirees who owe $0 income tax
  • The phase-out math (a specific formula, not a simple percentage) means retirees in the $75,000-$150,000 range should run the actual numbers rather than assume a round-number outcome
  • High cost of living generally, particularly in Fairfield County near the New York border
🏖️

Florida Pros & Cons

+ PROS
  • No state income tax at all, at any income level — no threshold to stay under, no phase-out to track
  • No state estate or inheritance tax
  • Much lower property tax on average (~0.78% effective, less than half Connecticut's rate)
  • Simpler tax planning — retirees don't need to manage income timing around an exemption cliff the way higher-income Connecticut retirees do
− CONS
  • Homeowner's insurance costs, driven by hurricane exposure, have risen sharply and can offset some of the property tax savings — $4,000-8,000+/year is common
  • No state-level exemption system means there's nothing to optimize around; the $0 result is the same regardless of income level or source
  • Summer heat and hurricane season, versus Connecticut's cooler climate and lower storm risk
FAQ

Frequently Asked Questions

Does Connecticut tax Social Security in retirement?

Only above a threshold. Social Security is fully exempt from Connecticut tax for single filers with federal AGI under $75,000, and for married-filing-jointly filers under $100,000. Above those levels, Connecticut taxes the lesser of the federally taxable amount or 25% of total benefits — so even higher-income retirees don't lose the full exemption, just most of it.

Are IRA distributions taxed in Connecticut?

For 2026, no — if you're under the AGI threshold. Connecticut has been phasing in a 100% deduction for IRA distributions since 2023 (25% that year, 75% in 2025), and tax year 2026 is the first year it reaches the full 100% deduction, matching the treatment pension income already had. This applies under the same $75,000 (single) / $100,000 (married) AGI thresholds as the pension exemption.

What happens to the Connecticut retirement exemption above the income threshold?

It phases out gradually rather than disappearing all at once. The exemption is reduced incrementally as AGI rises above $75,000 (single) or $100,000 (married), and disappears completely by $100,000 (single) or $150,000 (married) AGI. A retiree just over the threshold loses only a small portion of the exemption, not all of it.

How much does a Connecticut retiree save by moving to Florida?

It depends heavily on income level. A retiree under the exemption threshold (roughly $75,000 single / $100,000 married AGI) may already pay close to $0 in Connecticut, the same as Florida — moving wouldn't change much on the income-tax side. A higher-income retiree above $100,000-$150,000 AGI, where the exemption has fully phased out, could save several thousand dollars a year, similar to what a Connecticut wage-earner saves by relocating.

Is Connecticut a good state for retirement despite its tax reputation?

For retirees under the exemption thresholds, Connecticut's retirement-income tax treatment is genuinely competitive with zero-tax states — the reputation as a high-tax state for retirees is more accurate for higher earners. The bigger ongoing cost for most Connecticut retirees is property tax, not income tax, given the state's high average effective rate.

Should a Connecticut retiree move to Florida to save on taxes?

It's most worthwhile for retirees with total retirement income well above $100,000-$150,000, where Connecticut's exemption has fully phased out and the state taxes retirement income like ordinary wages. Retirees comfortably under the threshold are already paying close to $0 in Connecticut, so the tax case for relocating is much weaker — property tax and cost of living become the more relevant factors.
From the brief
US$2Mnet worth that triggers the exit tax
AT€100kdeferred gains: yearly proof from July
HU1%proposed wealth tax above 1bn forints
The Tax Brief · Subscribe free

More like this, every two weeks.

Verified rates, real after-tax figures, plain English. Free.

Bi-weekly. No spam. Unsubscribe in one click.