US state guide
Connecticut CT-W4 withholding code explained
Connecticut is different from a flat-rate state because the employee's withholding code changes the annualised calculation path.
In short
Connecticut uses withholding codes A, B, C, D and F rather than a simple one-size-fits-all state rate. The code affects the personal exemption, the initial tax calculation, phase-out add-backs and personal tax credits.
What the code changes
Code A, B, C and F each have different exemption thresholds and tax tables. Code D is special because the personal exemption and personal tax credit are both zero in the worksheet method used by the calculator.
Why the estimate may still differ from a pay stub
Connecticut withholding can also be adjusted by line 2 extra withholding and line 3 reduced withholding on Form CT-W4. Supplemental compensation can follow separate rules too, so a salary estimate is not the same thing as a full payroll record.
How to get a closer match
- Choose the code from your CT-W4.
- Check whether you asked for extra withholding or reduced withholding.
- Compare the annual estimate with a recent payslip.
Use the US take-home pay calculator for the annual estimate. This guide is a plain-English summary only.