2011 Connecticut Income Tax Changes
Effective August 1, 2011 retroactive to January 1, 2011
Recently enacted legislation makes significant changes to the Connecticut income tax withholding retroactive to January 1, 2011.As your employer we are required to adjust the withholding amount for the remainder of the 2011 taxable year to reflect the new income tax rates. The withholding tax tables have been revised to reflect the new rates, the 3% phase out provision, and a catch-up withholding amount for the remaining number of pays in this taxable calendar year.
The following is a brief overview of the changes which may affect your net pay:
- These are the currentincome tax brackets and income tax rates -
If you’re filing status is:
Single or Filing separately:
At a rate of 3% on the first $10,000 of Connecticut taxable income
At a rate of 5% on the excess over $10,000, but not over $500,000
At a rate of 6.5% on the excess over $500,000
Head of Household:
At a rate of 3% on the first $16,000 of Connecticut taxable income
At a rate of 5% on the excess over $16,000, but not over $800,000
At a rate of 6.5% on the excess over $800,000
Filing jointly or qualifying widow (er):
At a rate of 3% on the first $20,000 of Connecticut taxable income
At a rate of 5% on the excess over $20,000, but not over $1,000,000
At a rate of 6.5% on the excess over $1,000,000
- Effective August 1, 2011
The number of income tax brackets and income tax rates will be expanded to six as follows:
If you’re filing status is:
Single or Filing separately:
At a rate of 3% on the first $10,000 of Connecticut taxable income
At a rate of 5% on the excess over $10,000, but not over $50,000
At a rate of 5.5% on the excess over $50,000, but not over $100,000
At a rate of 6% on the excess over $100,000, but not over $200,000
At a rate of 6.5% on the excess over $200,000, but not over $250,000
At a rate of 6.7% on the excess over $250,000
Head of Household:
At a rate of 3% on the first $16,000 of Connecticut taxable income
At a rate of 5% on the excess over $16,000, but not over $80,000
At a rate of 5.5% on the excess over $80,000, but not over $160,000
At a rate of 6% on the excess over $160,000, but not over $320,000
At a rate of 6.5% on the excess over $320,000, but not over $400,000
At a rate of 6.7% on the excess over $400,000
Filing jointly or qualifying widow (er):
At a rate of 3% on the first $20,000 of Connecticut taxable income
At a rate of 5% on the excess over $20,000, but not over $100,000
At a rate of 5.5% on the excess over $100,000, but not over $200,000
At a rate of 6% on the excess over $200,000, but not over $400,000
At a rate of 6.5% on the excess over $400,000, but not over $500,000
At a rate of 6.7% on the excess over $500,000
- The 3% tax rate is phased out for taxpayers with Connecticut adjusted gross income over the following thresholds:
Over $100,500 filing jointly
Over $56,500 filing single
Over $78,500 filing as head of household
Over $50,250 married filing separately
Additional tax provisions require an additional amount of tax to be recaptured from taxpayers over certain income brackets.
These income tax changes arein effect for the entire tax year. As your employer we are required to adjust the withholding amount for employees affected by the new rates and additional provisions. The new withholding tax tables, catch-up amounts, and calculation rules will be effective August 1, 2011 and reflected in your August 2, 2011 pay.
Click on link to calculate the additional withholding tax: new withholding calculation rules.
Please see IP 2011(10),2011 Connecticut Income Tax Changes Affecting WithholdingRequirementsfor further information.
If you have any questions please do not hesitate to call Flo Polek at extension 4973.