Connecticut House Bill HB05094

Connecticut 2026 Regular Session

• Introduced: 2/9/26
• Refer: 2/9/26

Caption

An Act Exempting Social Security Benefits And Pension Or Annuity Income From The Personal Income Tax.

Impact

If enacted, this bill would amend section 12-701 of the general statutes, explicitly stating that Social Security benefits and pension or annuity income would not be subject to personal income tax. The potential impact of this change is significant as it would likely result in a reduction of state tax revenues, which may require the state to reassess its budget allocations. Proponents argue that this legislation would stimulate consumer spending among retirees, which could have a positive effect on local businesses and services catering to the elderly population.

Summary

House Bill 05094 aims to enhance the financial well-being of retirees by exempting Social Security benefits and pension or annuity income from the state’s personal income tax. By removing this taxation, the bill intends to relieve the financial burden on senior citizens and other individuals receiving such benefits, potentially leading to increased disposable income for those demographics. The primary objective is to provide a supportive environment for retirees, thus encouraging senior residents to remain in the state and contribute to the local economy.

Contention

Despite the benefits attributed to HB05094, there are points of contention that may arise during discussions. Critics may express concerns about the loss of state revenue from the elimination of taxes on these income sources. This revenue loss could exacerbate funding challenges for essential state services and programs, particularly those that disproportionately benefit the designed demographic, such as healthcare and senior services. Furthermore, there may be concerns regarding equity, as individuals without such income sources would not benefit from this tax exemption, potentially increasing the tax burden on other residents.