The Short Answer
Active-duty pay is fully exempt for residents stationed outside Connecticut; a resident is treated as a nonresident if they have no permanent CT home, maintain a home elsewhere, and spend under 30 days in CT. Your base pay is set by the federal pay table — identical to every other state for your rank and years of service. What actually changes in Connecticut is your BAH (averaging $1,900/mo without dependents and $2,300/mo with dependents) and how Connecticut treats the taxable portion of your pay.
State tax status: ✓ TAX EXEMPT
2026 Worked Example — E-5, 6 Years, With Dependents in Connecticut
Here is how the math actually lands for a mid-career enlisted member stationed in Connecticut, built the way I read my own LES. Base pay and BAS are federal; the Connecticut BAH figure is the state average.
| Monthly line item | Amount | Taxable? |
|---|---|---|
| Base pay (E-5, over 6 yrs) | $3,874 | Yes (federal + state) |
| BAH with dependents (Connecticut avg) | $2,300 | No — tax-free |
| BAS (enlisted) | $476.95 | No — tax-free |
| Gross monthly entitlements | $6,650.95 | — |
| Taxable income (base pay only) | $3,874 | — |
| Est. Connecticut state income tax | varies — see notes | — |
Only the $3,874 of base pay is taxable — the $2,776.95 of BAH + BAS is completely tax-free. Run your exact rank, ZIP, and dependency status in the Military Pay Calculator for a precise estimate.
How Connecticut Taxes Each Type of Military Pay
Active-Duty Base Pay
Active-duty pay is fully exempt for residents stationed outside Connecticut; a resident is treated as a nonresident if they have no permanent CT home, maintain a home elsewhere, and spend under 30 days in CT.
Guard & Reserve Drill Pay
Connecticut Guard and Reserve pay follows the military pay subtraction rules; verify with the CT DRS for in-state duty.
Military Retirement Pay
Military retirement pay is 100% exempt from Connecticut income tax.
VA Disability Compensation
VA disability compensation is exempt federally and is not taxed by Connecticut.
SCRA & Residency in Connecticut
Under SCRA, a submariner homeported at Groton who is a legal resident of another state owes no Connecticut income tax on military pay.
This is the single most misunderstood rule in military pay. Your home of record / state of legal residence — not your duty station — generally determines who can tax your military pay. Changing it is a deliberate act, not something that happens automatically when you PCS.
Major Military Installations in Connecticut
- Naval Submarine Base New London (Groton)
- U.S. Coast Guard Academy (New London)
- Bradley Air National Guard Base
BAH is set by the Military Housing Area covering your duty ZIP. Verify your exact rate at the official DoD BAH lookup.
Official Sources
FAQ — Military Pay in Connecticut
Does Connecticut tax my military base pay?
Active-duty pay is fully exempt for residents stationed outside Connecticut; a resident is treated as a nonresident if they have no permanent CT home, maintain a home elsewhere, and spend under 30 days in CT.
Is my BAH taxed in Connecticut?
No. BAH is federally tax-free and is never counted as income for Connecticut state income tax, regardless of how Connecticut treats base pay.
Does Connecticut tax military retirement pay?
Military retirement pay is 100% exempt from Connecticut income tax.
I'm stationed in Connecticut but my home of record is elsewhere — who taxes me?
Under SCRA, a submariner homeported at Groton who is a legal resident of another state owes no Connecticut income tax on military pay.