Julie Kushner

Senator Kushner Highlights Increased Tax Exemptions for Seniors to Go Into Effect on New Year’s Day

State Senator Julie Kushner (D-Danbury) today highlighted a key legislative change going into effect on January 1. Seniors will benefit from the state’s phase out of income tax on pension and annuity income for taxpayers earning below certain thresholds, the percent of their income exempt from taxation will grow from 28 to 42 percent. That represents a continuation of important, significant savings that will only continue to accelerate for those impacted when all income becomes exempt in 2025.

From 2019 to 2025, the state is phasing out taxation on pension and annuity income for those earning less than $75,000 in pension and annuity income for single filers, married people filing separately and heads of households, and for those married couples filing jointly and earning less than $100,000. Beginning in 2019, 14 percent of that income became exempt, with an annual increase of 14 percent continuing through 2025 until the income becomes completely exempt. January 1 marks the third step in the process, resulting in less than 60 percent of impacted seniors’ incomes from pensions and annuities being taxable in 2021.

“Simply stated, this puts money back in the hands of seniors who need it most,” said Sen. Kushner. “The many individuals in our community who live on fixed incomes and growing budgets need more stability and deserve our help. That’s what this phase out does. So many of our seniors struggle to make ends meet – I’m happy that the new year will bring a little relief to these families.”