Updated October 4, 2026. Quick answer: No, for most retirees. The 2025 CT-1040 instructions tell a filer to “Subtract income received as military retirement pay” on Line 44, to the extent it is included in federal adjusted gross income, and print no dollar cap or age.
State retirement-income forms, line by line: Connecticut Schedule 1 line 48b.
How Connecticut treats military retired pay
| Item | What the documents say |
|---|---|
| Treatment | Full subtraction of military retirement pay included in federal adjusted gross income (Form CT-1040, Line 44) |
| Who qualifies | A retired member of the armed forces of the United States or the National Guard, or a beneficiary receiving survivor benefits under an option or election made by a deceased retired member |
| Not covered | Payments to a former spouse under a divorce decree or property settlement do not qualify |
| Cap or age | None printed |
| Rate on other income | 2.00% on the first $10,000 up to 6.99% on the amount over $500,000 for a single filer, as the instructions print the schedule |
A $30,000 example
A retired member with $30,000 of military retired pay included in federal adjusted gross income subtracts all $30,000 on Line 44, so none of that pay is left to tax.
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What changes in 2026
No 2026 change is printed in the documents read.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal side in Publication 3, Armed Forces’ Tax Guide.
Related: whether Connecticut taxes pensions, how Connecticut taxes retirement income, military retirement pay by state, and the military retirement calculator.
Sources
- Form CT-1040 Connecticut Resident Income Tax Return Instructions 2025: https://portal.ct.gov/-/media/drs/forms/2025/income/2025-ct-1040-instructions_1225.pdf
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.