Today, August 1, marks the start of three major changes to the Connecticut State Income Tax Withholding. Adjusted gross income along with tax filing status will determine the amount of change (if any). Any changes will be reflected in paychecks dated August 12, 2011. Please keep in mind I voted against these punitive retroactive state income tax increases in May.
Three major changes:
1. The number of tax brackets has increased from three to six. The new tax brackets are 3%, 5%, 5.5%, 6% and 6.7%.
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2. The 3% rate is phased out for taxpayers with CT adjusted gross income as follows:
- Over $56,000 filing single
- Over $78,500 filing head of household
- Over $100,500 married filing jointly
- Over $50,250 married filing separately
3. Additional tax provisions require a recapture of tax from taxpayers over income brackets as follows:
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- Adjusted gross income over $200,000 filing single
- Adjusted gross income over $320,000 filing for head of household
- Adjusted gross income over $400,000 for married filing jointly
- Adjusted gross income over $200,000 for married filing separate
Below are examples of the bi-weekly tax changes for an employee with a State filing status of single:
Annual Income Old Tax New Tax Difference $30,000 $28.96 $28.96 $0 $60,000 $106.71 $112.93 $6.22 $100,000 $183.63 $223.09 $39.46Please note, these tax changes are retroactive to January 1, 2011 and the new amounts, as illustrated above, reflect any catch-up amount due through the end of the year. Here is a link to the tables you can check.
More detailed information can be found on the Department of Revenue website.
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