Income tax withholding
| Imposes wage income tax | Yes |
|---|---|
| Rate structure | Graduated, top marginal rate 6.99% |
| Withholding certificate | CT-W4 Employee's Withholding Certificate |
| Accepts federal Form W-4 | No |
| Convenience-of-the-employer rule | Yes Remote days worked outside Connecticut for a Connecticut employer can still be sourced to Connecticut unless the arrangement is an employer necessity. |
| Nonresident withholding threshold | 15 days 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. |
| Local income taxes | No No local personal income or wage taxes. Connecticut does impose a state Paid Family and Medical Leave employee contribution. |
Reciprocity
States that exempt Connecticut residents
A Connecticut resident working in these states files that state's certificate and is taxed only by Connecticut.
Unemployment insurance and paid leave
| Taxable wage base 2026 | $27,000 2025 base was $26,100. |
|---|---|
| New employer rate | 1.9% |
| Experience rate range | 0.1% – 10% |
| Experience-rating method | benefit ratio |
| Employee UI contribution | No |
| Paid family / medical leave | Yes 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. |
Employer registration
- Tax agency
- Connecticut Department of Revenue Services
- UI agency
- Connecticut Department of Labor
Sources
portal.ct.gov · portal.ct.gov · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov · portal.ct.gov · ctpaidleave.org