Military Retirement in Connecticut
Complete 2026 Tax Guide for Veterans
100% Tax-Free Military Retirement
Submarine Capital of the World
Quick Facts: Connecticut for Military Retirees
Twenty years in, the hard question was never the tax rate
It's what you have to earn on the outside so your family never feels the drop. Connecticut taking $0 of your pension is one line of that math. Your federal bracket and your VA rating decide the rest. Put your numbers in and you get one figure back: the civilian salary you need in Connecticut. Once you know it, you can go after work you actually want instead of the first offer that covers the bills. About a minute, free, no account, nothing saved.
See the salary I need →Connecticut Military Retirement Tax Overview
Connecticut offers 100% tax exemption on military retirement pay. The exemption went from 50% to 100% starting with tax year 2015, so it is long settled law. This makes the state significantly more attractive for military retirees, especially those with ties to the submarine force or Coast Guard.
| Income Type | Tax Treatment | Notes |
|---|---|---|
| Military Retirement Pay | 100% Exempt | Full exemption since 2015 |
| VA Disability Compensation | Tax-Free | Protected by federal law |
| Survivor Benefit Plan (SBP) | Tax-Free | Included in military exemption |
| Social Security | Tax-Free | Connecticut exempts Social Security |
| Other Pension Income | Taxable | Subject to regular income tax |
| Civilian Employment | 3% - 6.99% | Graduated rate system |
Military Installations in Connecticut
Connecticut is a critical hub for the U.S. submarine force and Coast Guard, with major installations and world-class defense contractors.
Naval Submarine Base New London
Groton - "Submarine Capital of the World"
- • Home to 15+ attack submarines
- • Naval Submarine School
- • Submarine Force Library and Museum
- • 9,000+ military and civilian personnel
- • Full commissary and exchange
U.S. Coast Guard Academy
New London
- • Only Coast Guard service academy
- • Beautiful Thames River campus
- • Coast Guard Museum
- • Training facilities
- • Commissary access
Electric Boat (General Dynamics)
Groton & Quonset Point
- • Builds all U.S. nuclear submarines
- • Virginia-class submarine production
- • Columbia-class SSBN development
- • 17,000+ employees
- • Major employer for veterans
Defense Contractors
Statewide
- • Pratt & Whitney (jet engines)
- • Sikorsky Aircraft (helicopters)
- • Raytheon facilities
- • Many veteran-friendly employers
- • High-paying technical jobs
Those numbers aren't your family's
Your rank, your years, your rating, your house payment. Same math run on your numbers: what actually lands in the account each month after federal tax, and the civilian salary that closes whatever gap is left. If your spouse is working, it counts that too. You walk away with a target instead of a worry.
Run my numbers →Cost of Living in Connecticut
Connecticut has a higher cost of living than the national average, but the 100% military retirement tax exemption and high-paying defense jobs can offset this significantly.
| Category | Connecticut | National Average |
|---|---|---|
| Overall Cost of Living | 112 (12% above) | 100 |
| Median Home Price | $380,000 | $420,000 |
| Property Tax Rate | 2.14% | 1.07% |
| Healthcare Costs | 10% Above Average | 100 |
Best Connecticut Cities for Military Retirees
Groton/New London Area
Naval Submarine Base, Coast Guard Academy
- • Strong military community
- • Full base amenities nearby
- • Electric Boat employment
- • Coastal living, beaches
- • VA clinic access
Hartford Metro
State Capital, Insurance Industry
- • West Haven VA Medical Center access
- • Pratt & Whitney nearby
- • Major healthcare systems
- • Lower housing costs than coast
- • Central location
Stratford/Bridgeport Area
Sikorsky Aircraft
- • Sikorsky helicopter production
- • Near NYC for amenities
- • Coastal Connecticut
- • Metro-North access
- • Defense contractor jobs
Mystic/Stonington
Historic Coastal Towns
- • Near Sub Base New London
- • Charming New England towns
- • Mystic Seaport Museum
- • Great seafood, coastal life
- • Strong veteran community
VA Healthcare in Connecticut
Connecticut is served by the VA Connecticut Healthcare System with facilities throughout the state and excellent care quality ratings.
VA Medical Centers
- West Haven VA Medical Center - Major teaching hospital, Yale affiliation
- Newington Campus - Outpatient and specialty care
Community-Based Outpatient Clinics
- • Danbury
- • New London
- • Stamford
- • Waterbury
- • Willimantic
- • Winsted
Pros & Cons of Retiring in Connecticut
✅ Pros
- ✓ 100% military retirement tax exemption
- ✓ Social Security also tax-free
- ✓ Major submarine base with full services
- ✓ Excellent defense contractor jobs
- ✓ High-quality healthcare (Yale)
- ✓ Beautiful New England scenery
- ✓ Close to NYC, Boston
- ✓ Strong public schools
- ✓ Rich history and culture
❌ Cons
- ✗ High property taxes (2.14% average)
- ✗ Cost of living 12% above average
- ✗ Cold, snowy winters
- ✗ High state income tax on other income
- ✗ Traffic congestion in metro areas
- ✗ Limited active-duty options (mainly Navy/CG)
- ✗ Estate tax on estates over $13.61M
Frequently Asked Questions
Does Connecticut tax military retirement pay?
No. Connecticut has exempted 100% of military retirement pay from state income tax since 2015. This applies to all military retirees regardless of age or income level.
Is Connecticut good for submarine veterans?
Absolutely. Connecticut is home to Naval Submarine Base New London and Electric Boat, which builds all U.S. nuclear submarines. There's a strong submarine community with excellent employment opportunities for veterans with submarine experience.
What defense contractor jobs are available?
Major employers include Electric Boat (submarines), Pratt & Whitney (jet engines), and Sikorsky (helicopters). These companies actively recruit veterans and offer competitive salaries.
What property tax benefits do Connecticut veterans receive?
Connecticut changed this substantially in 2024. Under Public Act 24-46, effective October 1, 2024, a veteran with a VA service-connected permanent and total disability rating pays no property tax at all on their primary residence, or on one motor vehicle if they do not own a home. It applies statewide, and you file for it with your town assessor. Underneath that sits the older structure: a basic $1,000 exemption for veterans with at least 90 days of wartime service, set amounts for specific severe injuries such as $5,000 for loss of use of an arm or leg and $10,000 for permanent paralysis of both legs, plus additional income-tested relief. For a retiree carrying a 100% permanent and total rating, the full exemption is worth many times the older amounts.
Calculate Your Connecticut Military Retirement
See how much you'll save with Connecticut's 100% military retirement tax exemption
Try the Free CalculatorComparing states? The $4.99 worksheet ranks your exact pension in all 50, Connecticut included, with 20-year state tax totals for each. Get the worksheet or see a sample first.
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