Updated October 5, 2026. Quick answer: Yes, with an income-based subtraction. Connecticut’s statute allows a deduction of “any pension or annuity income”, 100.0% of it for a single filer whose federal adjusted gross income is under $75,000 (married filing jointly: under $100,000), and phases it out to nothing at $100,000 (joint: $150,000).
State retirement-income forms, line by line: Connecticut Schedule 1 line 48b.
How Connecticut treats annuity income
| Item | What the documents say |
|---|---|
| Treatment | Taxed on the graduated schedule; pension or annuity income subtracted in steps by federal adjusted gross income |
| Rates | 2.0%, 4.5%, 5.5%, 6.0%, 6.5%, 6.9% and 6.99% (statute, taxable years from 2024) |
| Full subtraction | “Less than $75,000 100.0%” for single, head of household and married filing separately; under $100,000 for married filing jointly |
| No subtraction | “$100,000 and over 0.0%” for single, head of household and married filing separately; $150,000 for married filing jointly |
| Where it is claimed | “Line 48b: Pension or Annuity Income” |
A $24,000 example
A single filer with federal adjusted gross income under $75,000 subtracts all $24,000 of annuity payments that are in federal income, so it adds $0 of Connecticut tax.
A single filer at $100,000 or more gets no subtraction, so the $24,000 is taxed on the graduated schedule; at the lowest rate alone it is $24,000 x 2.0% = $480, and higher brackets apply as income rises.
What changes in 2026
The printed statute covers taxable years from January 1, 2024 and each year after; the documents read print no new 2026 change.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal side in Topic no. 410, Pensions and Annuities and Publication 575, Pension and Annuity Income.
Related: whether Connecticut taxes pensions, how Connecticut taxes retirement income, state tax on 401(k) and IRA withdrawals, how a surrendered annuity is taxed, and pension and annuity decisions.
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Answer againSources
- 2025 Form CT-1040 Connecticut Resident Income Tax Return Instructions (Rev. 12/25) (Connecticut Department of Revenue Services): https://portal.ct.gov/-/media/drs/forms/2025/income/2025-ct-1040-instructions_1225.pdf
- Chapter 229 Income Tax, Conn. Gen. Stat. Secs. 12-700, 12-701 (Connecticut General Assembly): https://www.cga.ct.gov/current/pub/chap_229.htm
Sources: the primary documents linked above, read on October 5, 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.