Connecticut Tax Changes - December 2024
Week Of 12.02.2024
2025 Withholding Rules and Tables
- The Connecticut Department of Revenue Services has released the 2025 withholding calculation rules and tables.
- These rules and tables are unchanged from 2024.
- Employers must use either the withholding calculation rules or the withholding tables to determine the amount of tax to be withheld from employee wages.
- No percentage method is available for Connecticut wage withholding.
Retirement Income Distributions
- Effective January 1, 2025, payers are no longer required to withhold income tax from certain retirement income distributions.
- Payers are still required to withhold income tax from lump sum distributions.
- Payees can request withholding by completing Form CT-W4P (Withholding Certificate for Pension and Annuity Payments).
- The income tax withheld is calculated using the same method as employer withholding, requiring payers to use the withholding calculation rules and the recipient's most recent Form CT-W4P.
Week Of 12.02.2024
Connecticut Corporate Income Tax—Connecticut issues 2025 withholding rules and tables.
The Connecticut Department of Revenue Services has issued the 2025 withholding calculation rules and 2025 withholding tables, with are unchanged from 2024. Employers use either the withholding calculation rules or the withholding tables to determine the amount of tax to be withheld from the wages of employees. There is no percentage method available to determine Connecticut wage withholding. Effective January 1, 2025, payers no longer are required to withhold income tax from certain retirement income distributions. Payers still are required to withhold income tax from lump sum distributions. Payees may request the payer to withhold income tax withholding by completing Form CT-W4P (Withholding Certificate for Pension and Annuity Payments). The income tax withheld is calculated using the same method that an employer uses to determine the amount to withhold from wages. Therefore, such payers must use the withholding calculation rules along with the recipient’s most recently completed Form CT-W4P. (Connecticut 2025 Withholding Calculation Rules, Conn. Dept. Rev. Services, 01/01/2025.)
Connecticut Personal Income Tax—Connecticut issues 2025 withholding rules and tables.
The Connecticut Department of Revenue Services has issued the 2025 withholding calculation rules and 2025 withholding tables, with are unchanged from 2024. Employers use either the withholding calculation rules or the withholding tables to determine the amount of tax to be withheld from the wages of employees. There is no percentage method available to determine Connecticut wage withholding. Effective January 1, 2025, payers no longer are required to withhold income tax from certain retirement income distributions. Payers still are required to withhold income tax from lump sum distributions. Payees may request the payer to withhold income tax withholding by completing Form CT-W4P (Withholding Certificate for Pension and Annuity Payments). The income tax withheld is calculated using the same method that an employer uses to determine the amount to withhold from wages. Therefore, such payers must use the withholding calculation rules along with the recipient’s most recently completed Form CT-W4P. (Connecticut 2025 Withholding Calculation Rules, Conn. Dept. Rev. Services, 01/01/2025.)
Week Of 12.02.2024
Connecticut Corporate Income Tax—Connecticut issues 2025 withholding rules and tables.
The Connecticut Department of Revenue Services has issued the 2025 withholding calculation rules and 2025 withholding tables, with are unchanged from 2024. Employers use either the withholding calculation rules or the withholding tables to determine the amount of tax to be withheld from the wages of employees. There is no percentage method available to determine Connecticut wage withholding. Effective January 1, 2025, payers no longer are required to withhold income tax from certain retirement income distributions. Payers still are required to withhold income tax from lump sum distributions. Payees may request the payer to withhold income tax withholding by completing Form CT-W4P (Withholding Certificate for Pension and Annuity Payments). The income tax withheld is calculated using the same method that an employer uses to determine the amount to withhold from wages. Therefore, such payers must use the withholding calculation rules along with the recipient’s most recently completed Form CT-W4P. (Connecticut 2025 Withholding Calculation Rules, Conn. Dept. Rev. Services, 01/01/2025.)
Connecticut Personal Income Tax—Connecticut issues 2025 withholding rules and tables.
The Connecticut Department of Revenue Services has issued the 2025 withholding calculation rules and 2025 withholding tables, with are unchanged from 2024. Employers use either the withholding calculation rules or the withholding tables to determine the amount of tax to be withheld from the wages of employees. There is no percentage method available to determine Connecticut wage withholding. Effective January 1, 2025, payers no longer are required to withhold income tax from certain retirement income distributions. Payers still are required to withhold income tax from lump sum distributions. Payees may request the payer to withhold income tax withholding by completing Form CT-W4P (Withholding Certificate for Pension and Annuity Payments). The income tax withheld is calculated using the same method that an employer uses to determine the amount to withhold from wages. Therefore, such payers must use the withholding calculation rules along with the recipient’s most recently completed Form CT-W4P. (Connecticut 2025 Withholding Calculation Rules, Conn. Dept. Rev. Services, 01/01/2025.)