How Much Tax Is Deducted From a Paycheck in CT?
Understand what shapes your net pay in Connecticut. Gain clarity on the mandatory contributions that determine your actual take-home earnings.
Understanding paycheck deductions is an important aspect of managing personal finances for employees. Your gross pay, the total amount earned before any reductions, is not the amount you receive in your bank account. Various amounts are subtracted from your earnings, resulting in your net pay, often called take-home pay. These subtractions include mandatory tax withholdings, which are sent to government entities on your behalf.
Both federal and state governments require employers to withhold specific taxes from employee wages. Knowing what these deductions are and how they are calculated allows you to verify the accuracy of your pay and plan your budget effectively.
Federal Paycheck Deductions
Mandatory federal tax deductions fund various federal programs and services. The primary federal taxes include federal income tax, Social Security tax, and Medicare tax.
Federal income tax (FIT) is withheld from wages based on information provided by an employee on Form W-4, Employee’s Withholding Certificate. This tax supports federal government operations, covering areas such as defense and education. Employers use the W-4 to calculate the appropriate amount to withhold.
Social Security and Medicare taxes are combined under the Federal Insurance Contributions Act (FICA). Social Security tax, also known as Old-Age, Survivors, and Disability Insurance (OASDI), is set at a rate of 6.2% for employees. This tax helps fund retirement, disability, and survivor benefits for eligible individuals. For 2025, the Social Security tax only applies to earnings up to a wage base limit of $176,100.
Medicare tax, another component of FICA, supports the hospital insurance program for individuals typically aged 65 or older and certain others. The employee contribution rate for Medicare tax is 1.45% of all covered wages, with no wage base limit. An additional Medicare tax of 0.9% applies to wages exceeding $200,000 in a calendar year, regardless of filing status.
Connecticut State Paycheck Deductions
Employees in Connecticut also have state-specific deductions taken from their paychecks, which contribute to public services and programs. The main state deductions include Connecticut state income tax and contributions to the Connecticut Paid Family and Medical Leave program.
Connecticut has a progressive state income tax structure, meaning higher incomes are subject to higher tax rates. Rates for Connecticut state income tax range from 2% to 6.99%, depending on an individual’s taxable income and filing status. Employers determine the amount of state income tax to withhold based on information provided by the employee on Form CT-W4, Employee’s Withholding Certificate.
The Connecticut Paid Family and Medical Leave (CT PFML) program requires a mandatory employee contribution. This deduction funds the CT Paid Leave Authority, which provides wage replacement benefits for qualifying leave. For 2025, employees contribute 0.5% of their earnings to this program. The contribution is capped at the annual Social Security contribution and benefit base, which is $176,100 for 2025.
How Your Withholding Amount is Determined
The amount of both federal and state income tax withheld from a paycheck is influenced by several factors. The most important forms for this purpose are the federal Form W-4 and the Connecticut Form CT-W4. On these forms, employees indicate their filing status, such as single or married, and account for factors like multiple jobs or additional income. Adjustments for dependents, tax credits, or additional withholding amounts can also be specified.
The level of an individual’s gross pay also directly affects the withholding amount, especially under progressive tax systems. As income increases, a larger portion may fall into higher tax brackets, leading to a greater amount of tax withheld.
The frequency of pay periods, such as weekly, bi-weekly, or monthly, can influence the amount withheld per paycheck. While the total annual tax liability remains the same, the per-paycheck deduction is adjusted to spread the annual tax burden across all pay periods. Employees should regularly review their withholding to ensure it aligns with their tax situation and financial goals.
Interpreting Your Pay Stub
Your pay stub details your earnings and deductions. Pay stubs typically organize information into clear sections, allowing employees to identify different types of withholdings. Familiarizing yourself with these sections and common abbreviations helps in verifying accuracy.
You will usually find sections for “Gross Pay,” “Taxes,” and “Deductions.” The “Taxes” section lists mandatory withholdings, often using abbreviations like “FED W/H” or “FWT” for federal income tax, and “OASDI” for Social Security. “MED” typically represents Medicare tax, while “FICA” encompasses both Social Security and Medicare contributions.
Connecticut-specific deductions may appear as “CT W/H” for state income tax and “CT PFML” for Paid Family and Medical Leave contributions. Reviewing your pay stub regularly allows you to ensure that the correct amounts are being withheld. Comparing current deductions to previous pay stubs or annual statements can help identify any discrepancies.
If you have questions or notice any errors on your pay stub, contact your employer’s human resources or payroll department. They can provide clarification on specific deductions or assist with any necessary adjustments.