Military Retirement Pay Income Tax Exemption
100% exemption of military retirement pay from Connecticut state income tax.
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Apply directly through the official Connecticut agency.
About this benefit
Eligibility
Retired member of the U.S. Armed Forces or National Guard receiving military retirement pay includible in federal AGI. Must file CT income tax return.
Covers
Full subtraction of military retirement pay from CT adjusted gross income. SBP/RCSBP/RSFPP annuities are also fully exempt. Military disability retirement pay for service-connected injury/sickness is fully exempt.
Note
Former spouses receiving a portion of retirement pay under a divorce decree do NOT qualify.
How to apply
Claim on CT income tax return (Form CT-1040).
Verified against official source
Last checked 2026-05-05 against portal.ct.gov. Always confirm current rates and rules with the Connecticut state agency before applying.
Other Connecticut Tax Benefits
Veteran Property Tax Assessment Exemption (Disabled)
Property tax exemption based on disability rating for veterans with 10%+ VA rating, subject to income limits.
Up to $10,500 off assessed value (varies by rating and income)
Full Property Tax Exemption (100% P&T)
Complete property tax exemption on primary residence for veterans with 100% permanent and total disability.
100% property tax exemption
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