Income tax withheld to
New York
Graduated, top rate 10.9%
Determination engine
Which state do you actually withhold in?
Reciprocity, convenience-of-the-employer, nonresident thresholds and unemployment localization, applied together to one employee's facts. Every answer cites the state source it came from.
Withhold New York income tax.
The work state does not tax these wages, so the residence state governs.
Employee certificate
None required
No state withholding allowance certificate applies.
Unemployment insurance
Connecticut
Localized under factor 1: Localization.
Reciprocal agreement
No
Connecticut has no reciprocal agreements.
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Below the Connecticut nonresident threshold
Connecticut does not require nonresident withholding until the employee exceeds 15 working days in the state. You entered 0. Per Circular CT (IP 2026(1)): 'If a nonresident employee performs personal services for employment purposes in Connecticut for 15 days or less, this compensation is not Connecticut-sourced income and is not subject to Connecticut income tax.' If the employee ends up exceeding 15 days, withholding applies retroactively to ALL Connecticut compensation. Tax Foundation separately reports a >$6,000 nonresident filing threshold.
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Track this, because it flips mid-year
Once the threshold is crossed, most states require withholding on all in-state wages for the year, not just the excess. Set an alert well before the limit.
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New York also taxes this income, with a credit
The residence state taxes worldwide income. The employee claims a credit on the New York return for tax paid to Connecticut, which prevents true double taxation but usually still leaves a balance if New York's rate is higher. Some employers withhold for both states; many withhold only for Connecticut and let the employee manage the difference.
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New York has local income taxes at the residence
New York City imposes a resident personal income tax and Yonkers imposes a resident income tax surcharge plus a nonresident earnings tax -- all withheld through payroll (see Form IT-2104.1 for nonresident allocation). The Metropolitan Commuter Transportation Mobility Tax (MCTMT) is an employer-paid tax on payroll in the MTA region, not withheld from employees.
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Connecticut paid family and medical leave contributions
Connecticut Paid Leave is 100% employee-funded at 0.50% of wages up to the Social Security wage base ($184,500 for 2026). The CT Paid Leave Authority held the rate at 0.50% for 2026. Employee contribution: 0.5%. These follow the state of unemployment coverage, not the income tax state.
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New York also runs a paid leave program
The employee resides in New York, which has a mandatory paid leave program, but unemployment coverage is localized to Connecticut. Check whether New York requires coverage based on residence; several programs use a work-location test and a few do not.
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Employer registrations you will need
- New York — Income tax withholding: New York State Department of Taxation and Finance
- Connecticut — Unemployment insurance: Connecticut Department of Labor
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This is a determination aid, not advice.
StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your
entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into
a judgement call. Every determination cites the state source it came from — verify against that source, and take
anything consequential to a payroll tax professional before you act on it.