Basic Info
Deductions
Insurance Premiums
Your Connecticut Paycheck Results
Calculating your paycheck…
Take-Home Pay:
$0.00
Per Pay Period:
$0.00
Tax Breakdown
Federal Income Tax:
$0.00
State Income Tax (CT):
$0.00
Social Security:
$0.00
Medicare:
$0.00
Additional Medicare:
$0.00
Total Tax:
$0.00
Deduction Breakdown
401(k) Contribution:
$0.00
Traditional IRA:
$0.00
HSA Contribution:
$0.00
FSA Contribution:
$0.00
Health Insurance:
$0.00
Dental Insurance:
$0.00
Vision Insurance:
$0.00
Other Deductions:
$0.00
Total Deductions:
$0.00
Gross Annual Income:
$0.00
Effective Tax Rate:
0.00%
Connecticut State Income Tax Information
The American state employs a progressive income tax system with seven brackets, ranging from 2% to 6.99%. This structure ensures that higher earners contribute a larger percentage of their income in taxes.
| Taxable Income | Tax Rate |
|---|---|
| $0 – $10,000 | 2.00% |
| $10,001 – $50,000 | 4.50% |
| $50,001 – $100,000 | 5.50% |
| $100,001 – $200,000 | 6.00% |
| $200,001 – $250,000 | 6.50% |
| $250,001 – $500,000 | 6.90% |
| $500,001 and above | 6.99% |
Standard Deduction: $15,000 (Single), $30,000 (Married Filing Jointly)
Personal Exemption: Not applicable; the state does not offer a personal exemption.
Federal Income Tax
Federal income taxes apply to all U.S. residents based on income, filing status, and deductions. The IRS uses a progressive tax rate structure from 10% to 37%.
FICA Taxes
| Component | Rate | Income Limit |
|---|---|---|
| Social Security | 6.2% | Up to $168,600 |
| Medicare | 1.45% | No Limit |
| Additional Medicare | 0.9% | Above $200,000 (Single) / $250,000 (Married) |
Pre-Tax Deductions
These deductions reduce your taxable income and can significantly lower your tax burden:
- 401(k), 403(b), and similar retirement contributions
- Health and dental insurance premiums
- Health Savings Account (HSA) and Flexible Spending Account (FSA) contributions
- Pre-tax commuter and transit benefits
State-Specific Deductions and Credits
| Credit or Deduction | Description |
|---|---|
| Child Tax Credit | Starting in 2025, a refundable credit of $150 per child (up to 3 children) is available for single filers earning up to $100,000 and joint filers up to $200,000. The credit phases out above these thresholds. |
| Property Tax Credit | Up to $350 credit for property taxes paid, available to single filers earning up to $70,000 and joint filers up to $100,000, with phase-outs at higher incomes. |
| Retirement Income Exemption | Exemptions available for certain retirement incomes, including Social Security benefits and pension income, subject to income limits. |
| 529 College Savings Plan Deduction | Contributions to the state’s 529 plan are deductible from state income taxes, encouraging savings for higher education. |
Interesting Facts About the State’s Taxes
- The state has one of the highest top marginal income tax rates in the nation at 6.99%.
- Unlike some states, it does not offer a personal exemption, relying instead on a standard deduction.
- Recent legislative efforts have focused on providing tax relief to middle-income families through credits and deductions.
- The state offers a sales tax exemption on solar and geothermal energy equipment, promoting green energy adoption.
FAQs – State Paycheck Tax
- 1. Does the state tax Social Security benefits?
- Social Security benefits are exempt from state income tax for single filers earning up to $75,000 and joint filers up to $100,000. Above these thresholds, benefits may be partially taxable.
- 2. Are there any local income taxes in the state?
- No, the state does not impose local income taxes; residents are subject only to state and federal income taxes.
- 3. Can I deduct contributions to a Health Savings Account (HSA)?
- Yes, contributions to an HSA are deductible on both federal and state income tax returns, reducing your taxable income.
- 4. Is there a tax credit for renters?
- Currently, the state does not offer a specific income tax credit for renters, but property tax relief programs may be available at the municipal level.
- 5. How does the state handle capital gains taxation?
- Capital gains are taxed as regular income, subject to the state’s progressive income tax rates.