How Much Taxes Are Deducted From a Paycheck in CT?

When reviewing a paycheck in Connecticut, individuals observe various deductions that reduce gross earnings to net pay. These deductions encompass federal and state-specific obligations, contributing to public programs and services. Understanding these deductions provides clarity on how earned income is allocated. This insight helps manage personal finances and anticipate the final take-home amount.

Federal Withholding from Paychecks

Federal tax deductions on a paycheck primarily consist of Federal Income Tax (FIT) and Federal Insurance Contributions Act (FICA) taxes. Employers withhold these amounts and remit them to the Internal Revenue Service (IRS). These withholdings ensure revenue for federal programs and approximate annual tax liability.

Federal income tax withholding is calculated based on an employee’s gross earnings and information provided on Form W-4, Employee’s Withholding Certificate. This form allows employees to indicate filing status, number of dependents, and any additional tax to be withheld, influencing the amount deducted each pay period. The federal income tax system operates on a progressive scale, meaning higher income levels are subject to higher marginal tax rates.

FICA taxes are mandatory contributions that fund Social Security and Medicare programs. For 2024, the Social Security tax rate for employees is 6.2% of wages, up to an annual wage base limit of $168,600. The Medicare tax rate is 1.45% of all wages, with no wage limit. An additional Medicare tax of 0.9% applies to wages exceeding $200,000 for individuals, without an employer match. These contributions provide retirement, disability, and healthcare benefits to eligible individuals.

Connecticut State Income Tax Withholding

Connecticut imposes its own state income tax, also withheld from employee paychecks. The state uses a progressive income tax system, similar to the federal structure, with different rates applied to various income brackets. For the 2024 tax year, Connecticut’s income tax rates range from 2% to 6.99% across seven brackets. The two lowest brackets saw reductions for 2024, decreasing to 2% and 4.5% from previous rates.

Connecticut state income tax withheld depends on an individual’s gross wages, filing status, and allowances claimed on Form CT-W4, Connecticut Employee’s Withholding Certificate. This form allows employees to adjust state withholding based on personal circumstances. Claiming a personal exemption on Form CT-W4 can reduce income subject to state tax withholding, lowering the deduction.

Connecticut also offers tax credits that can reduce an individual’s state tax liability, such as the property tax credit. While these credits are applied when filing an annual tax return, their potential impact on liability is considered when determining appropriate withholding. Employers are required to withhold Connecticut income tax on wages paid for services performed within the state.

Other Mandatory Connecticut Payroll Deductions

Beyond federal and state income taxes, Connecticut mandates additional payroll deductions for specific state programs. A prominent deduction is the Connecticut Paid Family and Medical Leave (CT PFML) program. This program provides paid leave benefits for qualifying life events, such as caring for a new child, a seriously ill family member, or their own serious health condition.

CT PFML program contributions are solely funded by employee payroll deductions. For 2024 and 2025, the employee contribution rate for CT PFML remains at 0.5% of wages. This contribution is applied to wages up to the Social Security wage base limit, which was $168,600 for 2024 and is $176,100 for 2025. These contributions ensure the fund’s solvency, allowing eligible individuals to receive financial support during periods of leave.

Factors Influencing Your Tax Deductions

Several factors influence the taxes withheld from a paycheck. Gross pay is the primary factor; higher earnings result in higher tax deductions due to progressive tax systems and fixed percentage contributions. Pay frequency also plays a role; bi-weekly or weekly payroll may result in smaller per-paycheck deductions compared to monthly, even if annual income is the same.

Information on federal Form W-4 significantly determines federal income tax withholding. Filing status, dependents claimed, and any additional withholding directly impact the calculation. Similarly, for Connecticut state income tax, allowances and exemptions claimed on Form CT-W4 directly influence the amount withheld. Adjusting these forms helps employees align withholding with their actual tax liability.

Pre-tax deductions, such as health insurance premiums or retirement accounts like a 401(k), also affect tax withholding. These deductions reduce taxable income before federal and state income taxes are calculated, leading to lower tax deductions. However, FICA taxes and CT PFML contributions are calculated on gross wages before pre-tax deductions are applied.

Understanding Your Paystub

A paystub details earnings and deductions for a specific pay period. To interpret tax deductions, look for sections labeled “Current Deductions” or “Taxes.” These sections itemize withholdings from gross pay.

Federal tax deductions are identified by abbreviations like “FIT” or “FWH” for Federal Income Tax Withholding, “SS” or “FICA-SS” for Social Security, and “Med” or “FICA-Med” for Medicare. Connecticut state income tax withholding may appear as “CT WH” or “CT SIT”. The Connecticut Paid Family and Medical Leave deduction is abbreviated as “CTPFML” or “CT Paid Leave”.

Paystubs display “current” amounts for the pay period and “year-to-date” (YTD) amounts, showing cumulative earnings and deductions since the calendar year’s start. Regularly reviewing these figures helps track financial information. If any paystub items are unclear, seek clarification from an employer’s human resources or payroll department.