FAIRFIELD, Conn. -- State Rep. Laura Devlin (R-Fairfield, Trumbull) is working to make retiring in Connecticut more affordable by proposing legislation that would exempt Social Security benefits and pensions from the state income tax.
Under current law, those receiving Social Security benefits who make more than $50,000 if single and $60,000 if married are taxed for 25 percent of their total receipts.
The bill HB-6361, An Act Eliminating the Personal Income Tax on Pensions and Social Security Benefits has been referred to the Finance, Revenue and Bonding committee for review.
Connecticut's state income tax treats income from public and private pensions the same as any other income. The state has no other special exemptions for pension income.
States including Massachusetts, New York, and Maine exempt all Social Security income from taxes, Devlin noted.
"It's time for Connecticut to have a conversation” about making changes to its pension and social security tax, Devlin said.
"We want people to stay in Connecticut and not leave for lower tax states that don’t tax their pensions, especially our senior citizens. This is an issue of fairness,” Devlin said.
She serves on the tax-writing Finance, Revenue, and Bonding committee.