Connecticut Tax Guide for Employers (2026) 

Connecticut uses a progressive income tax system with multiple brackets. The state has its own withholding form (CT-W4) with unique filing status codes that differ from most other states. Connecticut is also known for having a recapture tax that applies to higher-income earners. 

Connecticut’s progressive income tax uses multiple brackets with rates that vary by filing status. Employees complete Form CT-W4 to specify their filing status using Connecticut-specific codes (A through F). The state does not use allowances in the traditional sense but instead relies on the filing status and wage level to determine withholding. 

Connecticut supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 6.99%. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 3.0%. 

Connecticut requires contributions to Connecticut Paid Family Leave. Both employer and/or employee contributions may apply. Verify the current rates and requirements at https://portal.ct.gov/drs/withholding/withholding.

Follow these steps to begin withholding Connecticut payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the Connecticut Department of Revenue Services at portal.ct.gov/DRS
3. Register for SUTA with Connecticut DOL at ctdol.state.ct.us
4. Submit a Netchex tax team request to enable Connecticut SIT, SUTA, and PFML
5. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
6. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Connecticut payroll taxes on your behalf. 

The following are general filing and deposit deadlines for Connecticut payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at Connecticut Department of Revenue Services. 

Note: Deadlines are subject to change. Always confirm current requirements directly with Connecticut Department of Revenue Services at https://portal.ct.gov/drs/withholding/withholding. 

The following official resources will help you stay current on Connecticut payroll tax requirements: 

• Connecticut Department of Revenue Services
• Connecticut CT-W4 Form
• Connecticut PFML

What withholding codes does Connecticut use? 

Connecticut Form CT-W4 uses withholding codes A through F, which adjust withholding based on estimated annual income and filing status. 

Does Connecticut have Paid Family Leave? 

Yes. Connecticut’s PFML program requires employee payroll deductions. Verify current rates at ctpaidleave.org. 

What is Connecticut’s SUTA wage base? 

Connecticut’s SUTA wage base is $25,000 per employee per year (2025). Verify at ctdol.state.ct.us. 

Does Connecticut have local payroll taxes? 

No. Connecticut does not have local income or payroll taxes. 

What is Connecticut’s supplemental withholding rate? 

Connecticut uses a flat 6.99% for supplemental wages.