Connecticut Payroll Compliance
Every rate, wage base, and threshold Connecticut employers need for 2026 — sourced from DRS, the Dept. of Labor, and CT Paid Leave — including the UI reform package that’s actively lowering employer costs.
Minimum Wage & Hours
Connecticut’s minimum wage rose to $16.94/hour on January 1, 2026, announced by Governor Lamont in September 2025. The rate is indexed to the federal Employment Cost Index rather than a fixed CPI formula, and the increase directly raises CT Paid Leave’s maximum weekly benefit as well.
| Item | 2026 Value | Notes |
|---|---|---|
| Statewide minimum wage | $16.94/hr | Effective Jan 1, 2026; indexed to the Employment Cost Index |
| Hotel/restaurant tipped wage | $6.38/hr | With tip credit; total must reach $16.94 |
| Overtime rule | 40 hrs/week | Federal FLSA; no state daily overtime rule |
| Local wage ordinances | None | No Connecticut municipality sets its own minimum wage |
State Income Tax Withholding
Connecticut uses seven graduated brackets from 2% to 6.99%, the top rate applying only above $500,000 of taxable income for single filers. Connecticut has no local income taxes anywhere — the state rate is the entire withholding calculation.
| Item | 2026 Value | Notes |
|---|---|---|
| Bracket range | 2% – 6.99% | 7 brackets; top rate above $500,000 (single) |
| Withholding tables | CT Withholding Tables | Published annually by the Dept. of Revenue Services |
| Employer return | Form CT-941 | Quarterly reconciliation of withheld amounts |
| Local income tax | None | No Connecticut city or town imposes one |
| Reciprocity | None | Connecticut has no reciprocal withholding agreements with any state |
CT Paid Leave (PFMLA)
Connecticut Paid Leave is entirely employee-funded — unlike most PFML states, employers contribute nothing to the premium, only administer the withholding and remittance. The 2026 rate is unchanged from 2025 at 0.5%, but the maximum benefit rose with the minimum wage increase.
| Item | 2026 Value | Notes |
|---|---|---|
| Contribution rate | 0.5% | Employee-only; no employer contribution required |
| Wage cap | Social Security wage base | $184,500 for 2026 |
| Max weekly benefit | $1,016.40 | Capped at 60× the state minimum wage; rises with each wage increase |
| Coverage threshold | 1+ employee | Virtually all CT employers must withhold and remit |
| Administering agency | CT Paid Leave Authority | Separate from the Dept. of Labor, which handles SUI |
Unemployment Insurance (SUI)
Connecticut’s legislature passed UI Trust Fund reforms (Public Acts 21-200 and 22-67) specifically to lower employer costs and stabilize the system. For 2026, both changes moved in the employer's favor: the wage base rose but the new-employer rate dropped.
| Item | 2026 Value | Notes |
|---|---|---|
| SUI taxable wage base | $27,000 | Up from $26,100 in 2025 |
| New employer rate | 1.9% | Down from 2.2% in 2025 — a direct result of UI reform |
| Minimum charged rate | 0.1% | Best-experience employers |
| Maximum charged rate | 10.0% | Before the Fund Solvency Tax Rate is added |
| Fund Solvency Tax Rate | 1.0% | Added on top of the charged rate for all employers |
| Minimum weekly UI benefit | $44 | Up from $42, per the indexing provisions in the reform acts |
Official Connecticut .gov Resources
Verify every figure and register for accounts at the source. These are the agencies Connecticut employers work with for payroll.