States / Connecticut

Connecticut

Last checked Oct 22, 2026

Connecticut practitioners use at least five separate state logins for tax and payroll work: myconneCT for state taxes, ReEmployCT for unemployment tax, the CT Paid Leave employer portal, Business.CT.gov for annual reports, and the Labor Department's new hire site. None of the three largest systems has a published contract total. The state's checkbook shows $64.9M paid to FAST Enterprises for myconneCT, $44.7M paid to Tata Consultancy Services for ReEmployCT, and $112.9M in administration fees paid to Aflac for paid leave claims, all since July 2019.

Who administers what

Every fact links to its source and carries a label: Public record Vendor claim Press / secondary

What the state has spent

Contract totals are the approved ceilings or current contract values the sources state, not money paid, and they are added up only where a plain contract figure exists. The yearly average spreads each system's payments over the years they cover (marked p), or, where no payment data was found, its contract total over the contract term (marked c); systems with neither are left out; it is an estimate of the yearly cost, not a reported figure. Payments to date and project budgets or estimates are added up in their own tiles, from the figures shown in the table; the three kinds of figure overlap and are never added together. Follow each system below for its sources.

Portals practitioners use

Leadership and contacts

Checked Oct 30, 2026. People change roles often; confirm on the agency's site before relying on a name.

Chain of command

• Voters
  • Governor: Ned Lamont
    • Commissioner of Revenue Services: Mark D. Boughton Connecticut Department of Revenue Services
    • Labor Commissioner: Danté Bartolomeo Connecticut Department of Labor
  • Secretary of the State: Stephanie Thomas Connecticut Secretary of the State
• Boards
  • Chief Executive Officer: Erin O'Brien Choquette CT Paid Leave Authority

Employer account numbers

Checked Oct 29, 2026.

Three bodies issue Connecticut employer numbers: the Department of Revenue Services (income tax withholding, under the Connecticut Tax Registration Number, in myconneCT), the Department of Labor (unemployment insurance, a 10-digit Employer Account Number in ReEmployCT) and the CT Paid Leave Authority (paid family and medical leave contributions, its own registration in the CT Paid Leave portal). DRS tells employers not to use the Department of Labor registration number on DRS forms.

Layout: 9 is a digit, A is a letter, other characters are shown as the agency writes them. No real account numbers appear on this site.

Employer tax ID numbers for every state researched

Unemployment insurance tax

Checked Nov 3, 2026. Connecticut Department of Labor, Unemployment Insurance Tax Division

Connecticut's taxable wage base is $27,000 for 2026 (up from $26,100), indexed yearly since 2025; the 2027 figure was not yet posted. For 2026 a new employer pays 1.9% and contribution rates run from 1.1% to 9.9%, which include a 1.0% fund solvency tax. Charged rates are divided by a phase-in factor (1.125 for 2026, 1.053 for 2027) until the full 10.0% maximum charged rate takes effect in 2028.

Taxable wage base

2026: $27,000
2025: $26,100
Indexed annually for inflation from January 1, 2025, under Public Acts 21-200 and 22-67 (the wage base was $25,000 for 2024). The Department's guide does not give the index formula. source Public record

New employer rate

2026: 1.9% Down from 2.2% in 2025. The guide sets a newly liable employer's rate at the higher of 1% or the state's five-year benefit cost rate. The pages read show no separate construction rate.
2025: 2.2% source Public record

Rate range

2026: 1.1% to 9.9%, Benefit ratio (charged rate) plus a uniform fund solvency tax of 1.0%; charged rates divided by 1.125 Minimum charged rate 0.1%; maximum charged rate 10.0%, reduced to 8.9% for 2026 by the 1.125 divisor. A sector benefit ratio adjustment halves any NAICS sector increase of 1% or more. DOL's Significant Provisions (January 2026) shows Connecticut's rates as 0.1% to 10.0% (charged rates, before the divisor and without the fund solvency tax) and the new employer rate as 1.9%.
2025: 1.1% to 8.9%, Charged rate plus 1.0% fund solvency tax; charged rates divided by 1.269 Maximum charged rate reduced to 7.9% for 2025. source Public record

Other assessments

• Fund solvency tax (Fund Balance Tax Rate): 1.0% for 2026, the same for all employers and included in the 1.1% to 9.9% range; it can range from 0.0% to 1.0%, and the maximum drops to 0.5% in years an economic recession has been declared (2026) source Public record
• Special assessment for interest on federal UI loans: Only when Connecticut borrows federal funds; none shown for 2026 (2026) source Public record

Rate notices

The Annual Rate Notice is posted as correspondence in the employer's ReEmployCT account, announced by an email from ReEmployCT Notification (DOL.ReEmployCT@ct.gov); the Department's example letter is for 2024 rates. Rates are based on charges on the books as of June 30 of the preceding year.. Protest: The Department says there are no separate appeal rights for the calculation of the annual contribution rate; errors on the quarterly Statement of Experience Charges are protested within 40 days (changed from 60). source Public record

Voluntary contributions

Not allowed source Public record

Filing

Quarterly Tax and Wage Report (zero-wage report required for quarters with no wages)
Due: April 30, July 31, October 31 and January 31; next business day if the date falls on a Saturday, Sunday or holiday. Reimbursing employers have 15 more days.
Electronic filing: Required: under Conn. Gen. Stat. 31-225a(j)(2) and (4) all employers must file and pay electronically.
ReEmployCT source Public record

FUTA credit reduction

None. None outstanding: Connecticut is not among the states in Treasury's Title XII advance records for 2026-11-02 (California and Texas). DOL's actual credit reduction table shows Connecticut last at 0.3% for 2022 and nothing for 2023 to 2025, and Connecticut is not on DOL's list of potential 2026 credit reduction states. source Public record

Recent and coming changes

• Jan 1, 2026 Wage base rises to $27,000 (from $26,100); new employer rate falls to 1.9% (from 2.2%). source Public record
• Jan 1, 2027 Charged-rate divisor falls to 1.053, raising the maximum charged rate to 9.5% for 2027. source Public record
• Jan 1, 2028 Phase-in ends: the maximum charged rate is 10.0% beginning with calendar year 2028. source Public record

The 2026 rate page's worked example: a 5.0% benefit ratio divided by 1.125 gives a 4.5% charged rate, plus the 1.0% fund solvency tax, for a 5.5% contribution rate. Connecticut Paid Leave contributions are collected separately by the CT Paid Leave Authority and are not part of this tax.

Not confirmed: 2027 wage base, new employer rate and rate range not yet posted (the calendar year 2027 rate page returned 404 on 2026-11-03). When the 2027 Annual Rate Notices will be posted. The wage base indexing formula (the guide says only that it is indexed annually due to inflation). Voluntary contributions: recorded as not allowed from DOL's 2023 comparison table; no Connecticut page addresses them.

Unemployment insurance tax in every state

Income tax withholding

Checked Nov 3, 2026

Connecticut requires its own certificate, Form CT-W4 (Rev. 12/25, effective January 1, 2026), and an employee who does not give one is withheld on at a flat 6.99% with no exemption allowance. There is no flat supplemental rate: supplemental pay is withheld by combining it with regular wages and subtracting tax already withheld. Connecticut has no reciprocal agreement in the employer guide, does not require withholding from a nonresident who works in the state 15 days or less in a year, and applies a convenience of the employer rule only to residents of states with a similar test.

Withholding certificate

Form CT-W4, Employee's Withholding Certificate (Rev. 12/25, effective January 1, 2026); nonresidents also use Form CT-W4NA for apportionment. The employer must obtain a completed Form CT-W4 from each new employee when hired; it takes effect with the first payroll after it is received and stays in effect until the employee gives a new one. Employees claiming exemption must give a new CT-W4 on or before February 15 each year. With no certificate on file: If an employee fails to give a completed Form CT-W4, withhold at a flat rate of 6.99%, without allowance for exemption. Withholding Code E on Form CT-W4 (combined income of $24,000 or less, or a Military Spouses Residency Relief Act claim); an exemption expires February 15, after which the employer withholds at 6.99% if no new form is given. MSRRA claimants give the employer the service member's Leave and Earning Statement and the military dependent ID card. Copies of some exempt CT-W4s go to DRS. source Public record

Supplemental wages

2026: Paid at the same time as regular wages: figure the tax as if the total were one payment for the regular payroll period. Paid at a different time: if tax was withheld from regular wages, compute the tax on the combined regular and supplemental wages and withhold the difference from the supplemental pay; if not, add them together and compute the tax on the whole amount. source Public record

Withholding tables

IP 2026(1), Connecticut Employer's Tax Guide, Circular CT (issued 12/12/2025, effective January 1, 2026), with TPG-211 Withholding Calculation Rules, the 2026 withholding tables and the 2026 supplemental table for married couples filing jointly (2026). The separate 2026 withholding tables are posted at https://portal.ct.gov/-/media/drs/forms/2025/wth/2026-withholding-tables.pdf (an image PDF that was not machine readable). No 2027 guide was posted on the forms page read.

Reciprocity

No reciprocal agreements. Circular CT describes no reciprocal agreement. Employers reduce Connecticut withholding from residents working in another state by the other state's withholding, as shown in the guide's examples. source Public record

Nonresidents working here

Compensation of a nonresident for 15 days or less of work in Connecticut in a calendar year is not Connecticut-sourced and need not be withheld on. If a nonresident expected to work 15 or fewer days actually works more than 15, the employer must withhold on all Connecticut compensation, including the first 15 days. Convenience of the employer: yes, reciprocal: Circular CT says residents of states with a convenience of the employer test are subject to similar rules for work performed for a Connecticut employer. Policy Statement 2015(6), 15-Day Rule for Nonresident Employees (cited in Circular CT). source Public record

Deposits and returns

• weekly: Reported liability of more than $10,000 in the 12-month lookback period (for 2026, the 12 months ended June 30, 2025). Due Payday Saturday to Tuesday: the second Wednesday after payday; payday Wednesday to Friday: the Wednesday after payday
• monthly: More than $2,000 but not more than $10,000 in the lookback period. Due On or before the 15th of the month after the month wages were paid
• quarterly: $2,000 or less in the lookback period; most new employers. Due With Form CT-941 on or before the last day of the month after the quarter

Form CT-941, Connecticut Quarterly Reconciliation of Withholding, due April 30, July 31, October 31 and January 31, even if no tax was withheld. Annual reconciliation (CT-W3) is in data/inforeturns/connecticut.json. Employers must file all withholding forms electronically and pay by electronic funds transfer; a waiver may be requested on Form DRS-EWVR. myconneCT source Public record

Annual reconciliation

CT-945, due On or before January 31; a payer that remitted all taxes when due may file on or before February 10. Filed electronically.. With the W-2 and 1099 filing rules

Recent and coming changes

• Jul 1, 2025 Conn. Gen. Stat. 12-705 amended to suspend the withholding requirement on lump sum distributions from certain accounts through December 31, 2026, unless the payee requests withholding (pension and annuity payers, not wages). source Public record
• Jan 1, 2026 Form CT-W4 revised (Rev. 12/25), effective January 1, 2026. source Public record

Connecticut has no local income tax. CT Paid Leave employee contributions are administered by the CT Paid Leave Authority, not DRS, and are left out.

Not confirmed: Circular CT does not say whether a federal Form W-4 is accepted in place of Form CT-W4; it requires a CT-W4 and sets the 6.99% rate when none is given. The 2026 withholding tables PDF is an image without text and was not read; the guide's tables section was used instead. No primary source read states in so many words that Connecticut has no reciprocal agreement.

Withholding rules in every state

Credits for other states' taxes and part-year residents

Checked Nov 3, 2026

Connecticut gives residents a credit on Form CT-1040, Schedule 2 (line 7) for income tax paid to a qualifying jurisdiction: another state, a local government within another state, or the District of Columbia, including a share of a substantially similar pass-through entity tax. A part-year resident files Form CT-1040NR/PY, where the tax figured on all income is prorated by the share of Connecticut adjusted gross income from Connecticut sources (Schedule CT-1040AW and Schedule CT-SI), so income earned while a nonresident is kept out by allocation unless it is Connecticut source income. Nonresidents may not claim the credit, and Connecticut is an associate member of the Multistate Tax Commission.

Residents: credit for tax paid to other states

Form CT-1040, Schedule 2, Credit for Income Taxes Paid to Qualifying Jurisdictions (with the Schedule 2 worksheet). Line: Form CT-1040, line 7 (from Schedule 2, line 59). Limit: The least of: the income tax paid to the qualifying jurisdiction; the portion of Connecticut income tax due on the Connecticut adjusted gross income sourced in that jurisdiction; or the Connecticut income tax on Form CT-1040, line 6. Computed separately for each jurisdiction. Covers: Income taxes actually paid to another state, a local government within another state, or the District of Columbia on income derived from sources there and subject to tax there, including the employer compensation expense tax credit allowed by that jurisdiction. Yes: a local government within another state is a qualifying jurisdiction. When a city and its state tax the same income, one column combines both taxes; different amounts use two columns. Foreign taxes: No: a qualifying jurisdiction does not include the United States or a foreign country or its provinces (for example Canada and Canadian provinces). Pass-through entity taxes: Yes: qualifying payments include the direct and indirect pro rata share of taxes paid by a pass-through entity subject to a pass-through entity tax substantially similar to Connecticut's PE Tax. Attach: Attach a copy of every income tax return filed with a qualifying jurisdiction or the credit is disallowed; electronic filers keep the copies for three years and provide them on request. No credit for alternative minimum tax paid to another jurisdiction (use Form CT-6251), for tax paid to a jurisdiction that gave a credit on its own return for tax paid to Connecticut, or for tax on income not derived from that jurisdiction's sources. Income from intangibles is not sourced there unless from property used in a business there. Form CT-1040 Instructions (Rev. 12/25). source Public record

Part-year residents: income while a nonresident

Allocated or prorated A part-year resident computes the tax on Form CT-1040NR/PY in the same manner as a resident, then prorates it by the percentage of Connecticut adjusted gross income derived from Connecticut sources. Schedule CT-1040AW allocates income between the resident and nonresident periods; Schedule CT-SI then reports all income earned while a resident plus Connecticut-sourced income for the nonresident part of the year. Form CT-1040NR/PY with Schedule CT-1040AW, Part-Year Resident Income Allocation, and Schedule CT-SI. Line: Line 6 (income from Connecticut sources, from Schedule CT-SI, line 30), line 9 (line 6 divided by line 5, not over 1.0000) and line 10 (line 9 times line 8). source Public record

Part-year residents: credit for the period of residence

Available. The credit is limited to part-year residents for the period of their Connecticut residency, on income earned during the residency portion of the year that a qualifying jurisdiction taxed. Form CT-1040NR/PY, Schedule 2, entered on line 11 (from Schedule 2, line 61). source Public record

Nonresidents: reverse credit

No. Nonresidents may not claim a credit for income taxes paid to other jurisdictions; they pay Connecticut tax prorated by Connecticut source income. source Public record

Local income taxes

Schedule 2 covers income tax paid to a local government within another state, combined with that state's tax in one column when both tax the same income; there is no separate local credit. source Public record

Multistate Tax Compact

Associate member. source Public record

Other interstate rules

• Convenience of the employer: for the resident credit, compensation for services performed from a home office in Connecticut for an employer in a jurisdiction that applies a convenience of the employer test counts as income from that jurisdiction's sources. source Public record

Tax year 2025 Forms CT-1040 and CT-1040NR/PY instructions (Rev. 12/25). Reciprocity is covered in the withholding data (none).

Not confirmed: Connecticut's own residency test (domicile or permanent place of abode and more than 183 days) and its convenience of the employer rule for nonresidents were not found in the instructions read. Whether Connecticut has adopted UDITPA or the Compact's apportionment article: the corporation business tax law was not read. No 2026 change to the credit or part-year rules was found in the sources read.

Multistate rules in every state

Business return deadlines and annual reports

Checked Nov 4, 2026

Corporations file the Corporation Business Tax return, Form CT-1120, by the 15th day of the month after the federal due date: May 15, 2026 for calendar 2025, with a six-month extension on Form CT-1120 EXT (seven months for a June 30 year end). Partnerships and S corporations file the Composite Income Tax Return, Form CT-1065/CT-1120SI, by the 15th day of the third month (March 16, 2026). Every corporation, LLC, LLP and LP files an annual report online with the Secretary of the State: LLCs between January 1 and March 31 ($80), corporations, LLPs and LPs by the end of the anniversary month ($150 for a domestic stock corporation, $435 foreign, $50 non-stock, $80 LLP or LP).

Corporate return

Corporate income tax. Form CT-1120, Corporation Business Tax Return (combined unitary groups file Form CT-1120CU). Due: On or before the 15th day of the month following the due date of the corporation's corresponding federal income tax return (May 15 for calendar year filers). For tax year 2025: May 15, 2026. Fiscal years: A corporation with a June 30 fiscal year end may request a seven-month extension instead of six. source Public record

Corporate extension

By request. 6 months (7 months for a June 30 fiscal year end). Form CT-1120 EXT, filed electronically by the original due date with the tax shown paid; no reason is needed if federal Form 7004 was filed, otherwise reasonable cause is required. CT-1120 EXT does not extend the time to pay; the tax due must be paid with the extension request.

S corporations

Form CT-1065/CT-1120SI, Connecticut Composite Income Tax Return (no separate S corporation return). Due: On or before the 15th day of the third month following the close of the taxable year (March 15 for calendar year filers), moved to the next business day when it falls on a weekend or holiday. For tax year 2025: Mar 16, 2026. Form CT-1065/CT-1120SI EXT, six months (to September 15, 2026 for calendar 2025); not an extension of time to pay. source Public record

Partnerships

Form CT-1065/CT-1120SI, Connecticut Composite Income Tax Return. Due: Every pass-through entity doing business in Connecticut or with Connecticut source income files, regardless of income or loss, on or before the 15th day of the third month after the tax year closes (March 15 for calendar year filers). For tax year 2025: Mar 16, 2026. Form CT-1065/CT-1120SI EXT, six months (to September 15, 2026); not an extension of time to pay. source Public record

Individuals

Form CT-1040. For tax year 2025: Apr 15, 2026. Six months to October 15, 2026 on Form CT-1040 EXT filed by April 15, 2026; granted automatically without the form if a federal extension was requested and no additional Connecticut tax is expected. source Public record

Annual report

Filed with the Connecticut Secretary of the State, Business Services Division through Business.CT.gov, File Annual Report.

All annual reports must be filed online. The Secretary emails a reminder about a month before the due date (or mails a postcard if no email is on file). Foreign fees are from https://business.ct.gov/knowledge-base/articles/foreign-annual-report-forms-and-fees. Charities renew separately with the Department of Consumer Protection, already on the start-up page.

The elective pass-through entity tax return, Form CT-PET, is covered on the pass-through entity tax page. The tax year 2025 forms state no due date change for tax year 2026.

Not confirmed: The start-up page says a foreign LLP files between January 1 and March 31, citing https://business.ct.gov/knowledge-base/articles/foreign-limited-liability-partnerships-forms-and-fees (not re-read this run); the Secretary's FAQ read here gives the anniversary month for LLPs and LPs. Which applies to foreign LLPs was not resolved. The FAQ's no-late-fee answer and one-year administrative dissolution sentence sit in its LLC section; whether the same terms apply to corporations, LLPs and LPs is not stated there (the Business.CT.gov page says only that the office may dissolve a business that does not file). The annual report statutes were not read.

Deadlines and annual reports in every state

Electronic payment, penalties and interest

Checked Nov 4, 2026

Every taxpayer registered for Connecticut's business taxes (corporation business, sales and use, withholding, pass-through entity and most excise taxes) must file electronically and pay by electronic funds transfer, with a graduated 10% penalty for paying another way. The late payment penalty is 10% of the tax due (10% or $50, whichever is greater, for corporations), and a late return with no tax due may draw a $50 penalty. Interest is 1% a month (12% a year), fixed rather than reset.

Interest on unpaid tax

Fixed at 1% a month or fraction of a month from the due date until payment (DRS states the same rate for income, corporation business, withholding and other taxes); it is not reset periodically, so no separate 2027 rate is announced. source Public record

When tax must be paid electronically

• All taxes: All taxpayers registered for the listed tax types must file returns electronically and pay associated taxes by EFT; the list includes Corporation Business Tax, Sales and Use Taxes / Business Use Tax, Withholding Tax, Composite/Pass-Through Entity Tax (PET Optional Return), Room Occupancy Tax, Unrelated Business Income Tax and most excise taxes and fees. Individual income tax is not on the list. Methods: ACH debit through myconneCT (recommended), ACH credit in CCD+TXP format, or credit or debit card through myconneCT with a processor fee (card not available for cannabis tax). ACH debit needs a myconneCT login; ACH credit users submit Form EFT-1 and pre-register with the DRS Electronic Commerce Unit. Penalty for paying another way: Graduated: first offense 10% of the required payment, not more than $2,500; second offense 10%, not more than $10,000; third and later offenses 10%. source Public record
• Corporate: All Corporation Business Tax payments (estimates, extension payments and return payments) must be made electronically. Methods: myconneCT direct payment (ACH debit) or ACH credit (CCD+TXP). Pre-register with the DRS Electronic Commerce Unit for ACH credit. Penalty for paying another way: Non-electronic payments without a waiver are penalized on the same graduated scale (10%, capped at $2,500 then $10,000, then uncapped). source Public record
• Withholding: All employers must file withholding forms electronically and pay any associated taxes by EFT. Methods: EFT through myconneCT, or the Federal/State Employment Taxes (FSET) program. A waiver may be requested on Form DRS-EWVR at least 30 days before the due date. Penalty for paying another way: Graduated: 10% up to $2,500, then 10% up to $10,000, then 10%. source Public record

Penalties

Late filing

Covers: Any return or report required by law, including individual income tax, corporation business tax and withholding, when no tax is due (when tax is due, the late payment penalty applies). $50 when no tax is due. source Public record

Late payment

Covers: Income and use tax, withholding (10% of the amount due on all returns) and corporation business tax; DRS says late payment penalties are 10% or 15% depending on tax type. 10% of the amount due for income, use and withholding tax; for corporation business tax 10% of the tax due or $50, whichever is greater. Maximum: A one-time 10% (no monthly accrual). A single penalty covers late payment or late filing: the 10% applies when tax is due, and the $50 late filing penalty applies when no tax is due. A corporation with an extension avoids the penalty if it pays at least 90% of the tax by the original due date and the balance with the return by the extended due date. source Public record

Estimated tax, individuals

Charged as interest. 1% a month or fraction of a month, calculated separately for each installment, accruing until the earlier of April 15, 2026 or payment. Safe harbor: No interest if the balance after Connecticut withholding and PE Tax Credits is less than $1,000. Otherwise the required annual payment is the lesser of 90% of the tax on the 2025 return or 100% of the tax on the 2024 return (if a 2024 return covering 12 months was filed); no interest if no 2024 return was filed because there was no liability. Special rules for farmers and fishermen. Form: CT-2210 (Underpayment of Estimated Income Tax by Individuals, Trusts and Estates); a filer may skip it and DRS will send a bill. source Public record

Estimated tax, corporations

Charged as interest. 1% a month or fraction of a month. Safe harbor: Required when estimated current year tax exceeds $1,000; the required annual payment is the lesser of 90% of the tax (including surtax) for the year or 100% of the prior year's tax (including surtax, without regard to credits) if the prior year was 12 months and the return showed a liability; annualized installment method allowed (Worksheet CT-1120AE). Form: CT-1120I (Computation of Interest Due on Underpayment of Estimated Tax). source Public record

Penalty relief

A penalty may be waived if the failure to pay on time was due to reasonable cause and not intentional or due to neglect. Interest cannot be waived, and all tax and interest must be paid before a waiver request is considered. Penalties imposed in an audit, or not subject to waiver, cannot be waived this way; they may be protested to the Appellate Division on Form APL-002 within 60 days of the notice of assessment. DRS points to PS 2019(3), Requests for Waiver of Civil Penalties. How: DRS-PW, Request for Waiver of Civil Penalty, through myconneCT (for available taxes), by fax to 860-297-5727 or by mail to DRS Operations Bureau/Penalty Waiver, PO Box 5089, Hartford, CT 06103. Time limit: Tax and interest must be paid first; protests of an assessment within 60 days. source Public record

Other penalties

• Failure to pay electronically when required. 10% of the required payment: capped at $2,500 for a first offense and $10,000 for a second; uncapped after that. source Public record
• Failure to file W-2 information returns (or filing paper when e-filing is required, without a waiver). $5 for each information return or statement, up to $2,000 a calendar year. source Public record
• Willful failure to collect or account for withholding (responsible person). Penalty equal to the total tax evaded, not collected or not paid over. source Public record
• Fraudulent failure to pay, withhold or file. Civil penalty of not more than $1,000, in addition to other penalties. source Public record
• Failure to disclose a listed transaction (corporation business tax). 75% of the deficiency. source Public record
• Doing business without a seller's permit. $250 for the first day and $100 for each following day. source Public record

Recent and coming changes

• Jul 1, 2026 DRS says that beginning July 2026 most tax types are required to be filed electronically, with individual income tax the main exception source Public record

Withholding deposit schedules and preparer e-file mandates are in data/withholding/connecticut.json and data/practitioner/connecticut.json. The undue-hardship waiver of electronic filing and payment lasts one year and is requested on Form DRS-EWVR at least 30 days before the due date (Policy Statement 2020(2)).

Not confirmed: The statutory citations (Conn. Gen. Stat. sections 12-735, 12-39a and related) were not read, so citations are left null. Which taxes carry the 15% late payment penalty was not identified. The refund interest rate and whether interest compounds were not confirmed. PS 2019(3) (penalty waiver policy) and PS 2020(2) (e-file and e-pay waivers) were not read; the URL guessed for PS 2019(3) returned a 404 page. No current Connecticut amnesty program was checked.

Electronic payment, penalties and interest in every state

Disaster relief rules

Checked Nov 4, 2026

Connecticut decides case by case. The Department of Revenue Services acts under Conn. Gen. Stat. section 12-2(a)(5), which bars interest, penalty or additions to tax where the Commissioner determines that, by reason of casualty or disaster, imposing them would be against equity and good conscience, and it announces each decision in a Taxpayer Services Special Bulletin. In 2024 DRS matched the IRS postponement for New London County in full (income, corporation, pass-through entity, trust, unrelated business income and withholding returns and payments), but for the August 2024 storms it declined to conform to the full IRS extension and only considered individual requests by phone.

When the IRS postpones deadlines

Announces relief case by case No automatic rule. DRS exercises its authority under section 12-2(a)(5) event by event: for the January 2024 New London County flooding it extended listed returns, stating "These extensions align Connecticut tax filing and payment dates with the filing and payment extensions recently announced by the Internal Revenue Service" (TSSB 2024-1); for the August 18, 2024 storms DRS determined that "the current circumstances do not justify it further exercising its authority" under section 12-2(a)(5) to conform to the full scope of the IRS extensions, and instead considered requests for relief one by one (TSSB 2024-6.1). Set by each bulletin. TSSB 2024-1 applied to the area FEMA designated (New London County, including the Mohegan Tribal Nation and Mashantucket Pequot Tribal Nation) and said DRS would issue more guidance if other localities were added. TSSB 2024-6.1 offered relief on request to taxpayers in Fairfield, New Haven and Litchfield counties, and on request to taxpayers in the other five counties who were directly affected. Conn. Gen. Stat. section 12-2(a)(5); Taxpayer Services Special Bulletins TSSB 2024-1 (issued 2/1/2024) and TSSB 2024-6.1 (issued 09/17/2024). source Public record

Taxes covered

Only what each bulletin lists. TSSB 2024-1 extended to June 17, 2024: Form CT-1120 and payment (corporation business tax), CT-1041 (trusts and estates), CT-1040, CT-1040NR/PY, CT-1040 EXT and payments, 2023 and 2024 CT-1040ES estimated payments, CT-1065/CT-1120SI (pass-through entity tax), CT-990T (unrelated business income tax), and CT-941 withholding returns and payments. Not covered: Returns not listed in the bulletin are not extended; a taxpayer affected by the event who cannot meet another deadline may contact DRS to seek relief from penalty and interest, which DRS considers on the individual circumstances. TSSB 2024-1 did not list sales and use tax. source Public record

State-declared disasters

DRS can act without an IRS postponement. For the August 18, 2024 flooding, DRS issued its own guidance under section 12-2(a)(5) for obligations due August 18 to September 30, 2024 before the IRS announced relief, with relief granted on request based on each taxpayer's circumstances. The statute itself turns on "casualty or disaster" and does not require any declaration. source Public record

How to get relief

When DRS extends listed due dates (TSSB 2024-1), file and pay by the extended date. Otherwise, request relief from penalty and interest by calling the DRS Contact Service Center at 860-297-5962; DRS "will consider requests for relief based on the individual circumstances of each taxpayer." For obligations not yet due, TSSB 2024-6.1 required taxpayers to show the inability to comply was a direct result of the weather events and that they made all reasonable efforts to comply. Penalties: Conn. Gen. Stat. section 12-2(a)(5): "No interest, penalty or addition to tax shall be imposed" on tax not paid when required to the extent the Commissioner determines that, by reason of casualty or disaster, imposing it "would be against equity and good conscience." TSSB 2024-6.1 stated that DRS "is not granting blanket relief" for late payments and filings after September 30, 2024. source Public record

Where relief is posted

Taxpayer Services Special Bulletins, Connecticut DRS (disaster extensions are issued as special bulletins)

Other disaster tax rules

• Conn. Gen. Stat. section 12-39p: out-of-state businesses and out-of-state employees doing disaster-related or emergency-related work (repairing critical infrastructure) during a disaster response period are not deemed to have enough presence to register, pay tax on that income or use tax on equipment temporarily in the state, or file returns; for employees the income tax and filing relief applies only to residents of states with a substantially similar law or no personal income tax. A state disaster or emergency means a Governor's proclamation under chapter 517 or a presidential declaration of a major disaster or emergency in the state. source Public record

The 2024 bulletins show both outcomes: full alignment with the IRS (TSSB 2024-1) and a deliberate decision not to conform to the full IRS extension, "in consideration of the relatively small number of inquiries the DRS has received from impacted taxpayers" (TSSB 2024-6.1). No 2026 special bulletin on a disaster was listed.

Not confirmed: Statutory authority for DRS to extend filing deadlines (as distinct from waiving penalty and interest) for disasters was not identified; TSSB 2024-1 cites only section 12-2(a)(5). Whether DRS has treated a Governor-only emergency declaration differently from other events was not found.

Current disaster relief and every state's rules

Federal tax picture

From the IRS's own statistics: the Data Book for fiscal 2025 and Statistics of Income for tax year 2023. Every state

Collected by type: Individual income tax withheld and FICA tax $43.8B; Individual income tax payments and SECA tax $20.7B; Business income taxes $8.7B; Estate and trust income tax $1.1B; Estate tax $674M; Excise taxes $631M; Unemployment insurance tax $72M; Gift tax $38M; Railroad retirement tax $5.5M. source Public record

Filers moving in and out, 2022 to 2023

47,953 returns (76,966 people) with $5.3B of income moved in from other states; 53,627 returns (81,733 people) with $5.8B moved out, a net loss of $0.5B in income. source Public record

Minimum wage

Checked Nov 3, 2026. Connecticut Department of Labor, Wage and Workplace Standards Division

Connecticut's minimum wage is $16.94 an hour from January 1, 2026 and $17.48 from January 1, 2027. It is indexed each January 1 to the employment cost index for wages and salaries of civilian workers, and the Labor Commissioner announces the new rate by October 15. Tipped hotel and restaurant workers have a fixed cash wage of $6.38 an hour ($8.23 for bartenders), with tips making up the rest of the minimum wage.

Rate

$16.94 from Jan 1, 2026
$17.48 from Jan 1, 2027 source Public record

How it is set

Indexed: Percentage change in the employment cost index for wages and salaries for all civilian workers (U.S. Department of Labor) over the twelve months ending June 30 of the preceding year, rounded to the nearest cent. Announced: By the Labor Commissioner on October 15 each year, effective the next January 1 Conn. Gen. Stat. 31-58(i) source Public record

Tipped employees

2026: cash wage $6.38, tip credit $10.56 Hotel and restaurant waitpersons; bartenders $8.23 cash wage. Cash wages are fixed in Conn. Gen. Stat. 31-60(b)(3) and the tip credit is the difference between the minimum fair wage and that amount under 31-60(d) (tip credit figure computed: $16.94 minus $6.38).
2027: cash wage $6.38, tip credit $11.10 Cash wage fixed in statute; bartenders $8.23. Tip credit computed as $17.48 minus $6.38 under 31-60(d); no 2027 restaurant poster read. source Public record

Youth and training wages

Minors under 18 may be paid not less than 85% of the minimum wage for the first 200 hours of employment; minors employed by the state or a political subdivision, or in agriculture, may be paid 85%; minors with small agricultural employers (fewer than eight workers at once in the preceding year) not less than 70%. source Public record

Poster

Minimum Wage: Overview (DOL-75, Minimum Wage Administration Regulations); Restaurant and Hotel Workers (DOL-79); Mercantile Trade (DOL-78)

Recent and coming changes

• Jan 1, 2027 Indexed increase to $17.48. source Public record

The DOL-75 regulation summary states salary levels for the exemptions of $375 to $475 per week, below the federal level, so no state threshold is listed.

Not confirmed: The 2027 rate rests on the Division page list; the Labor Commissioner's October 2026 announcement and 2027 posters were not read. Local minimums: no source read on whether Connecticut towns may set a higher minimum wage.

Minimum wage in every state

Paid family and medical leave

Checked Nov 3, 2026. Collecting contributions

CT Paid Leave, run by the CT Paid Leave Authority, is a paid family and medical leave program funded entirely by employee payroll deductions of 0.5% of wages up to the Social Security contribution and benefit base ($184,500 in 2026), with no employer match. The Authority's board voted on September 10, 2026 to keep the rate at 0.5%, the statutory maximum. Contributions began January 1, 2021 and benefits January 1, 2022; employers with one or more employees register with the Authority and remit quarterly.

CT Paid Leave (Connecticut Paid Family and Medical Leave)

Kind and agency

Family and medical. CT Paid Leave Authority (Paid Family and Medical Leave Insurance Authority). Conn. Gen. Stat. sections 31-49e to 31-49t.

Started

Contributions from Jan 1, 2021. Benefits from Jan 1, 2022.

Contribution rate

2027: 0.5% of wages One rate for family and medical leave; employee-funded. The board voted on September 10, 2026 to keep the rate at 0.5% after modeling for 2027; the program's pages still describe the rate as "for 2026".
2026: 0.5% of wages One rate for family and medical leave; employee-funded source Public record

Wage base

2027: $192,300 The Social Security contribution and benefit base for 2027, which the program uses as its cap
2026: $184,500 The Social Security contribution and benefit base (the IRS states the 2026 Social Security wage base as $184,500). Each employer deducts until the employee reaches the limit with that employer; the employee may claim a refund of any overpayment. source Public record

Who pays

Employer: None; there is no employer match. Employee: 100%: 0.5% of total wages up to the Social Security base. Yes. Employers deduct 0.5% from pay and remit it; employees may not opt out. source Public record

Small employers

1 or more employees. Most employers with one or more employees in Connecticut are covered; there is no smaller-employer reduction. Sole proprietors and self-employed individuals may opt in. source Public record

Private plans

Allowed. Apply to the CT Paid Leave Authority for approval of a fully insured policy approved by the Connecticut Insurance Department, or a self-insured plan with a surety bond. The plan must give the same or better benefits, cost employees no more, cover all Connecticut employees and be approved by a majority vote of them; approval lasts three years. The employer must still register. source Public record

Filing and payment

Quarterly contribution return and payment through My Account for Business on the CT Paid Leave site (File + Pay), or the batch file process used mostly by TPAs; separate registration with the Authority is required. Due Last day of the last month of each quarter (March 31, June 30, September 30, December 31); no penalty or interest if paid by the last day of the month after the quarter. CT Paid Leave My Account for Business source Public record

Benefits

Up to 12 weeks in a 12-month period, plus up to 2 weeks for incapacity during pregnancy. 95% of base weekly earnings up to 40 times the state minimum wage, plus 60% of earnings above that. source Public record

Recent and coming changes

• The CT Paid Leave board voted unanimously to keep the contribution rate at 0.5%, finding the statutory rate not enough to meet its 10-year target fund balance. source Public record

The maximum weekly benefit is set by statute at 60 times the Connecticut minimum wage, so it changes when the minimum wage does; no dollar figure was found on the program pages read.

Not confirmed: The maximum weekly benefit in dollars for 2026 and 2027 is not stated on the pages read. The September 10, 2026 minutes record the vote to maintain 0.5% without naming the calendar year in the motion; the presentation was titled for 2027.

Paid leave in every state

Sick leave and time off

Checked Nov 5, 2026. Paid sick leave

Connecticut's paid sick leave law (Conn. Gen. Stat. 31-57r to 31-57w, expanded by Public Act 24-8) requires 1 hour per 30 hours worked, up to 40 hours a year, at employers with 11 or more employees in the state since January 1, 2026, extending to employers with 1 or more on January 1, 2027. The Connecticut Family and Medical Leave Act gives up to 12 weeks of job-protected leave a year at employers with one or more employees after three months of employment, paid through CT Paid Leave. Unused vacation is paid at termination only if the employer's policy or collective bargaining agreement provides for it.

Paid sick leave

The law

Connecticut Paid Sick Leave (Conn. Gen. Stat. 31-57r to 31-57w) source Public record

Employers covered

Employers with 25 or more individuals in the state from January 1, 2025, 11 or more from January 1, 2026, and 1 or more from January 1, 2027, counted on the payroll for the week containing January 1 each year. Excluded: employers in a construction-trade multiemployer health plan under collective bargaining, and self-employed individuals.

Employees not covered

All employees except seasonal employees (120 days or less in a year) and members of a construction-related tradesperson organization in a multiemployer health plan

How it builds up

1 hour per 30 hours worked, in one-hour increments

Yearly cap

Up to 40 hours a year (any 365-day period the employer uses for benefits); no employee may use more than 40 hours a year

Front-loading

Allowed in place of carryover: the employer may provide at least the required amount for immediate use at the start of the next year

When use can start

Accrued leave may be used on and after the 120th calendar day of employment

Carryover

Up to 40 unused accrued hours carry over to the next year, with use still capped at 40 hours a year

Allowed uses

Illness, injury or health condition, diagnosis, care, treatment, preventive care or a mental health wellness day for the employee; illness, care or preventive care of a family member; closure of the workplace or a family member's school or care by public health order; exposure to a communicable illness; and family violence or sexual assault needs. Family member: spouse, sibling, child, grandparent, grandchild or parent, or anyone related by blood or affinity whose close association is equivalent.

Notice and documentation

The statute no longer sets employee notice rules (Public Act 24-8 deleted them), and the employer may not require any documentation that leave is taken for a permitted purpose. The employer may not require the employee to find a replacement.

At the end of employment

Not required at termination unless an employee policy or collective bargaining agreement provides for paying accrued fringe benefits. Any termination is a break in service; a rehired employee starts accruing again and has no right to the earlier unused hours unless the employer agrees.

PTO policies

Yes: other paid leave (vacation, personal days or paid time off, including unlimited PTO) usable for the same purposes and under the same conditions, and accrued at least as fast, complies

Employer duties

At hire, give notice of the entitlement, amount and terms, the bar on retaliation and the right to complain, by displaying the Labor Department's poster in English and Spanish and giving written notice (electronically for remote or platform workers); record paid sick leave accrued or provided and used on the wage record under section 31-13a and keep the records three years

Enforcement

Labor Commissioner, Connecticut Department of Labor, Wage and Workplace Standards Division: on complaint and hearing, a civil penalty of $500 per violation for retaliation and up to $100 per violation of the leave, notice and record rules, plus relief such as payment for leave, reinstatement and back wages; appeal to Superior Court. No private right of action is stated in the sections.

Citation

Conn. Gen. Stat. 31-57r to 31-57w, Public Act 11-52 (2011), expanded by Public Act 24-8 (Substitute House Bill 5005, approved May 21, 2024), in effect since Jan 1, 2012

Agency guidance

portal.ct.gov

Local laws: Sections 31-57r to 31-57w contain no provision barring cities or towns from requiring paid leave, and no local paid sick leave ordinance was found. source Public record

Family and medical leave

The law

Connecticut Family and Medical Leave Act (CT FMLA), Conn. Gen. Stat. 31-51kk to 31-51qq source Public record

Employers covered

Employers with one or more employees (municipalities, boards of education and nonpublic schools are treated separately)

Who is eligible

Employed for at least three months immediately before the request

How long

12 workweeks in a 12-month period, plus up to 2 more weeks for a serious health condition causing incapacity during pregnancy; a one-time 26 workweeks in 12 months to care for a seriously injured or ill service member who is a spouse, child, parent or next of kin. On return, restoration to the same or an equivalent position.

Reasons

Birth, adoption or foster placement of a child; care of a family member with a serious health condition; the employee's own serious health condition; serving as an organ or bone marrow donor; qualifying exigencies from a family member's active duty

Paid?

Unpaid under the act; wage replacement through CT Paid Leave (the Family and Medical Leave Insurance Program), and the employee may elect or the employer may require substitution of accrued paid leave, keeping at least two weeks

Wage replacement: CT Paid Leave (Connecticut Paid Family and Medical Leave). Contribution rates and benefits

Vacation and PTO at the end of employment

Employer policy controls If an employer policy or collective bargaining agreement provides for paying accrued fringe benefits (paid vacations, holidays, sick days and earned leave) on termination, the employee must be paid them as wages under the policy or agreement, at no less than the earned average rate for the accrual period. Without such a policy, no payout is required. (Conn. Gen. Stat. 31-76k) source Public record

Other leave the law requires

Recent and coming changes

• Jan 1, 2026 Paid sick leave covers employers with 11 or more employees in the state (Public Act 24-8) in effect source Public record
• Jan 1, 2027 Paid sick leave extends to employers with 1 or more employees in the state (Public Act 24-8) enacted source Public record
• Jan 1, 2025 Public Act 24-8 took effect: coverage of all employees instead of service workers, accrual changed from 1 hour per 40 to 1 hour per 30 hours, documentation ban, 25-employee threshold in effect source Public record

What was checked: Checked the General Assembly's current statutes (chapters 557, 558, 814c, 504, 884 and 104) and the 2026 Supplement (Public Act 25-174 added only a public-employer increment rule to 31-57s and public school changes to 31-51kk; Public Act 25-75 made a technical change to 31-57r); Public Act 24-8; and the Department of Labor's paid sick leave page and 2026 poster. Voting: Conn. Gen. Stat. 31-57y required two hours of unpaid time off to vote only from June 23, 2021 to June 30, 2024, so no voting leave applies now. Volunteer firefighters and ambulance members: 7-322c bars discharge or discrimination for lateness or absence when responding to a call, which is a protection, not a leave grant, so it is not listed. No bereavement, school activities, blood donation or holiday law for private employers was found. Organ and bone marrow donation is a CT FMLA reason. Wage replacement is CT Paid Leave, already on the site.

Not confirmed: Conn. Gen. Stat. 54-85b (crime victims and subpoenaed witnesses attending court) was not read. Conn. Gen. Stat. 7-322b (municipal ordinances requiring paid fire and ambulance response leave) was seen only on a non-government site in a search result and was not read in the statute; whether any town has such an ordinance is unknown. 2026 session acts are not yet in the published statutes. A keyword check of the Office of Legislative Research's 2026 Acts Affecting Business and Jobs (https://www.cga.ct.gov/2026/rpt/pdf/2026-R-0081.pdf) found no sick leave or family leave item, but the 2026 acts were not reviewed one by one. The Department of Labor's paid sick leave FAQ PDF linked in search results returned a 404 page: https://portal.ct.gov/dol/-/media/dol/2022-new-design-system/divisions/wage-and-workplace-standards/psl-faqs-effective-1-1-25-amended.pdf

Federal law adds unpaid FMLA leave at employers with 50 or more employees and paid sick leave for federal contractors. Sick leave and time off in every state

Sales and use tax

Checked Nov 3, 2026

Connecticut's sales tax is 6.35%, with higher rates on meals (7.35%) and certain luxury items (7.75%) and lower rates on some items; no local sales taxes are added. A retailer selling into Connecticut from outside the state is engaged in business there, and must collect, once it had at least $100,000 of gross receipts and 200 or more retail sales into the state in the twelve months ended the preceding September 30 (both tests).

State rate

6.35%, since Jul 1, 2011 Conn. Gen. Stat. § 12-408(1)
Meals and certain beverages 7.35%; computer and data processing services and certain business-use electronically delivered software 1%; vessels 2.99%; motor vehicles over $50,000, jewelry over $5,000 and clothing, footwear and certain accessories over $1,000 at 7.75%. source Public record

Local taxes

None. DRS states that no additional sales taxes are imposed by local jurisdictions in Connecticut. source Public record

Remote sellers

$100,000 and 200 transactions; counts gross: gross receipts of at least $100,000 and 200 or more retail sales from outside Connecticut to destinations in the state; both tests must be met sales; The twelve-month period ended on the September 30 immediately preceding the monthly or quarterly period for which liability is determined; since Jul 1, 2019. The statute applies the test to each monthly or quarterly period using the twelve months ended the preceding September 30. DRS says a business must obtain a Sales and Use Tax Permit to make sales in Connecticut; no separate registration deadline for remote sellers was found. P.A. 18-152 first set the remote seller test at $250,000 and 200 sales; P.A. 19-117 lowered the dollar amount to $100,000 for sales on or after July 1, 2019. DRS's own sales tax pages read do not restate the threshold. source Public record

Marketplace facilitators

Must collect (A marketplace facilitator is a person that facilitates at least $250,000 of retail sales by marketplace sellers during the prior twelve-month period (among other conditions).), since Dec 1, 2018 source Public record

Streamlined Sales Tax

Not a member source Public record

Registration

Sales and Use Tax Permit, $100 Register Register on myconneCT (New Business/Need a CT Registration Number?); a permit is needed for each location. source Public record

Filing

• monthly: Default: total tax liability of $4,000 or more for the twelve months ending the preceding June 30
• quarterly: $1,000 or more but less than $4,000 for the twelve months ending the preceding June 30
• annual: Less than $1,000 for the twelve months ending the preceding June 30

Due: Form OS-114 is due on or before the last day of the month following the end of the filing period.
Electronic filing: Form OS-114 must be filed and paid electronically on myconneCT.
myconneCT source Public record

Certificates

Resale: Connecticut Sales and Use Tax Resale Certificate (from the DRS website) or a certificate that substantially resembles it; retailers should not accept another state's resale or exemption certificate.. MTC certificate: accepted
Exemptions: DRS issues numbered CERT forms for each exemption (for example CERT-119 for qualifying exempt organizations). source Public record

Recent and coming changes

• Jul 1, 2026 Nonelectronic school supplies bought for a nonbusiness purpose are exempt under Conn. Gen. Stat. § 12-412(128); DRS Policy Statement 2026(1) lists the qualifying items. source Public record
• Sales Tax Free Week expanded: the per-item limit for clothing and footwear rises from $100 to $300, and cleated shoes and backpacks qualify (amending Conn. Gen. Stat. § 12-407e). source Public record

The MTC Uniform Sales and Use Tax Certificate is accepted as a resale certificate only, not as an exemption certificate for any other purpose. The 1% rate on canned software applies only to software electronically accessed or transferred for business use.

Not confirmed: No DRS page read restates the remote seller threshold or says how soon after crossing it a seller must register; the fields rest on the statute. The online statute (cga.ct.gov current/pub) did not yet show § 12-412(128) or the $300 Sales Tax Free Week amount; the effective date of the Sales Tax Free Week expansion was not found. IP 2018(5), Getting Started in Business, is the DRS guide that states the resale certificate rules; no newer edition was found on the guides page. Whether Connecticut accepts the Streamlined exemption certificate was not stated in the DRS pages read. No vendor discount is described in the DRS pages read; left null.

Sales tax in every state

Credit card surcharges

Checked Nov 4, 2026. Surcharges barred

No. Connecticut bars any surcharge for paying by a particular method, so a business may not add a fee for paying by credit, charge or debit card. A business may instead offer a discount for paying by cash, check, debit card or similar means, but only if it posts a notice of the discount on its premises, on its website or app before an online sale, and aloud before a phone sale.

The rule

No person may impose a surcharge on any transaction. A surcharge is any additional charge or fee that increases the total amount of a transaction for the privilege of using a particular method of payment. source Public record

Cards covered

Any method of payment: the ban covers any fee for using a particular method of payment, and the section defines credit cards, charge cards and debit cards (including cards stored in a phone or app).

Exceptions

Payments to a state agency authorized under Conn. Gen. Stat. 1-1j, taxes and fees allowed by the Commissioner of Revenue Services under 12-39r, payments to a municipality under 12-141a, payments to the Judicial Branch under 51-193b, and sums under other statutes or agency regulations are not transactions under the section. A contract may not stop a gasoline distributor or retailer from offering a discount based on the method of payment. A seller may require a minimum amount for a charge or credit card purchase only if it discloses the requirement, and may not reduce an agent's commission because a card was used.

Enforcement

A violation is an unfair or deceptive trade practice under Conn. Gen. Stat. 42-110b (the Connecticut Unfair Trade Practices Act). The Commissioner of Consumer Protection may, after notice and hearing, impose an additional civil penalty of up to $500 per violation.

The law

Conn. Gen. Stat. 42-133ff, P.A. 86-222; current text from P.A. 22-104, sec. 36 (2022), amended by P.A. 24-142, sec. 28 (2024), in effect since May 24, 2022

Agency guidance

portal.ct.gov

Cash discounts

A business may offer a discount to induce payment by cash, check, debit card or similar means rather than by charge or credit card, but only if it clearly and conspicuously posts a notice of the discount on its premises for in-person sales, displays it on the website or payment app before an online sale, and says it before a phone or other oral sale. (Conn. Gen. Stat. 42-133ff(c)(1)) source Public record

Sales tax on the surcharge

Not stated No Department of Revenue Services rule or guidance on card surcharges was found or read; a surcharge is barred in Connecticut in any case. Not checked further on the DRS site.

Price display and fee laws

• Fee disclosure (all-in price) law, P.A. 25-44, sec. 1 (P.A. 25-44, sec. 1 (Substitute Senate Bill 3, 2025)), from Jul 1, 2026: A business may not advertise or offer a good or service at a price that leaves out a fee the buyer must pay to get it. The section expressly does not apply to, or permit, any surcharge barred by 42-133ff, so it does not open a path to card surcharges. A violation is an unfair or deceptive trade practice. source Public record

Recent and coming changes

• Jul 1, 2026 P.A. 25-44 (Substitute Senate Bill 3), signed June 10, 2025: fee disclosure rule in section 1 takes effect July 1, 2026; it leaves the 42-133ff surcharge ban in place. in effect source Public record

What was checked: Read Conn. Gen. Stat. 42-133ff in chapter 739 on the General Assembly site (current through the history note for P.A. 24-142), the Department of Consumer Protection surcharge FAQ (August 28, 2024), and P.A. 25-44 with its bill status page. A 2026 bill (S.B. 79) to bar state agencies from charging card service fees was referred to committee only and is not listed. No court ruling on the Connecticut ban was found.

Not confirmed: Whether the Department of Revenue Services has said if a card fee (where one is lawfully charged, for example by a government payee) is part of the taxable sales price was not checked. The effective date of the original P.A. 86-222 was not read; the effective date given is for the current text (P.A. 22-104).

Federal law and the card networks' own rules apply in every state. Surcharge rules in every state

Pass-through entity tax

Checked Nov 3, 2026. Pass-Through Entity Tax (PE Tax)

Mandatory for partnerships and S corporations from 2018 to 2023, the PE Tax has been optional since tax years beginning on or after January 1, 2024. An entity elects each year by checking the box on a timely filed Form CT-1065/CT-1120SI, by the due date or extended due date of that return; the election cannot be amended or revoked. The rate is 6.99% of the resident portion of unsourced income plus modified Connecticut source income, and members subject to the Connecticut income tax get a refundable credit equal to 87.5% of their direct and indirect share of the tax.

Law

Conn. Gen. Stat. 12-699 (estimated payments: 12-699a). Public Act 18-49 (2018); made elective by Public Act 23-204 (2023). First tax year 2018. source Public record

Who can elect

Partnerships (general, limited and limited liability partnerships, and LLCs or other entities treated as partnerships for federal income tax purposes) and S corporations that are required to file a Connecticut composite return under Conn. Gen. Stat. 12-726, that is, that do business in Connecticut or have Connecticut source income. A publicly traded partnership that has agreed to file an annual return reporting its Connecticut owners under 12-726 is excluded. No owner limits are stated. The statute gives the credit to members subject to the Connecticut income tax (resident, nonresident and part-year resident individuals, trusts and estates); it provides no credit for corporate members. A lower-tier entity that is a member of an upper-tier entity subtracts its distributive share of Connecticut source income (or adds back its share of loss) from the upper-tier entity. Each entity reports to its members their direct share of its tax and their indirect share of tax paid by upper-tier entities, and the credit covers both. source Public record

Election

Written notice to the Commissioner of Revenue Services for each taxable year; checking the box on a timely filed Form CT-1065/CT-1120SI, Connecticut Composite Income Tax Return, is the notice. The entity. Deadline: No later than the due date of the entity's return, or the extended due date if an extension was requested and granted. Made each year. No. The election is irrevocable and cannot be amended. source Public record

Rate

2026: 6.99% Same as 2025 (the statute sets 6.99% with no end year).
2025: 6.99% The resident portion of unsourced income plus modified Connecticut source income. source Public record

Estimated payments

Required in four installments when the required annual payment is $1,000 or more. The required annual payment is the lesser of 90% of the current year's PE Tax or 100% of the prior year's (if the prior year was a 12-month year and a return was filed). Cumulative installments: 22.5%, 45%, 67.5% and 90% of the current year's tax, or 25%, 50%, 75% and 100% of the prior year's. Use Form CT-PET ES; payments must be made electronically through myconneCT or MeF. Late payment or underpayment: penalty of 10% of the tax not paid by the original due date, and interest of 1% per month. The 15th day of the fourth, sixth and ninth months of the taxable year and of the first month after it (April 15, June 15, September 15 and January 15 for calendar year filers). source Public record

Return

Form CT-PET, Connecticut Pass-Through Entity Tax Return, filed and paid electronically through myconneCT or MeF. Due The 15th day of the third month after the close of the taxable year (March 15 for calendar year filers). Form CT-PET EXT for more time to file; Form CT-1127 for more time to pay. source Public record

Owner credit

Credit against the Connecticut income tax (other than the liability under 12-707) equal to 87.5% of the member's direct and indirect share of the PE Tax due and paid. Yes. Credit above the member's income tax liability is treated as an overpayment and refunded without interest (subject to offsets under 12-739 and 12-742). Nonresident and part-year resident individuals, trusts and estates are members subject to the Connecticut income tax and get the same 87.5% credit. Credit for other states' PTET: Yes. Resident and part-year resident members get a credit for their direct and indirect share of another state's or the District of Columbia's tax on the entity's income derived from that state, if it is substantially similar to the PE Tax, calculated consistently with 12-704. DRS does not list the qualifying states on the pages read. source Public record

Recent and coming changes

• Jan 1, 2019 Public Act 19-117 replaced the 93.01% credit multiplier with 87.5%, for taxable years commencing on or after January 1, 2019. source Public record
• Jan 1, 2024 Public Act 23-204 made the tax elective instead of mandatory, removed the alternative base calculation, and repealed the separate composite election in 12-699b, for taxable years commencing on or after January 1, 2024. source Public record

A PE Tax overpayment can be refunded to the entity, applied to its composite liability, or applied to the next year's estimated PE Tax (irrevocably). DRS pages use non-breaking hyphens in form numbers such as CT-1065.

Not confirmed: No change after Public Law 119-21 (2025) appears on the DRS PE Tax pages (last updated December 15, 2025) or in the statute history through Public Act 24-151. The length of the extension on Form CT-PET EXT: the Form CT-PET EXT instructions were not read. Whether the credit can be carried forward: it is refundable, so no carryforward rule was found.

Pass-through entity tax in every state

Conformity to the 2025 federal tax law

Checked Nov 3, 2026. Business tax: corporation business tax

Connecticut follows the Internal Revenue Code as amended (rolling) for both the income tax and the corporation business tax, and has long required an addback of section 168(k) bonus depreciation and of 80% of section 179 expensing, recovered over the next four years. Public Act 26-68 (the 2026 budget adjustment act, approved May 26, 2026) decoupled the corporation business tax from section 168(n) qualified production property from the 2026 income year, disallowed section 174A expensing for 2025 only, and disallowed the 2022 to 2024 research catch-up, with penalty and interest relief. No law adopted or rejected the federal tips, overtime, car loan or senior deductions; they are taken after federal adjusted gross income, Connecticut's starting point.

Follows the Code

Rolling: follows the Code as it changes. Conn. Gen. Stat. section 12-701(a) (income tax); section 12-213(a) (corporation business tax: the Code as amended, in force on the last day of the income year)
The 2026 decoupling (Public Act 26-68, section 265, amending section 12-217) applies to the corporation business tax only; no matching change to the individual income tax was found. source Public record

Starting point

Individuals: federal adjusted gross income
Corporations: federal taxable income source Public record

Response to Public Law 119-21

Partly adopted. Public Act 26-68 (Substitute Senate Bill 1, budget adjustments for the biennium ending June 30, 2027), sections 265 and 266, approved May 26, 2026, effective from passage. Years: Income years 2022 to 2025 (research expenditures) and 2026 onward (qualified production property)
The provisions began as sections 1 and 2 of Senate Bill 84, which stalled on the Senate calendar; OLR's 2026 bill tracking report lists them as PA 26-68 sections 265 and 266. Section 266 waives estimated-tax interest under section 12-242d and directs DRS to waive penalties and interest on the resulting underpayments for 2022 to 2025, unless the added tax remains unpaid after the later of November 15, 2026 or the return's original due date. All other federal changes flow through by rolling conformity. source Public record

Provision by provision

Guidance from the state

• Jul 2, 2026 TSSB 2026-2, Recently Enacted Legislation Impacts Connecticut's Conformity to IRC 174 and IRC 174A for Corporation Business Tax Purposes
• 2025 Form CT-1040 instructions (Schedule 1 lines 36, 36a and 48a)

Recent and coming changes

• Nov 15, 2026 Penalty and interest waiver for added corporation business tax from the research decoupling ends for amounts still unpaid after the later of November 15, 2026 or the return's original due date. source Public record

DRS's TSSB 2026-2 calls the federal law Public Law 119-121 in its text; the law is Public Law 119-21.

Not confirmed: No DRS guidance found on section 168(n) qualified production property for 2026 or on the federal individual deductions. The 2025 CT-1120 instructions were not read (guessed URLs returned 404); the corporate starting point rests on TSSB 2026-2. The CGA bill status pages on www.cga.ct.gov returned a certificate error to curl; the same pages loaded on cga.ct.gov.

Conformity in every state

Pay in job postings

Checked Nov 2, 2026. Pay required in job postings

Since October 1, 2026, every Connecticut employer with one or more employees, including the state and its political subdivisions, must state the wages or wage range and a general description of benefits in each internal or public job advertisement, for positions performed in Connecticut or reporting directly to a supervisor, office or worksite in Connecticut. Where no advertisement reached the applicant, the range and benefits description are owed on request or before any discussion or offer of compensation, and employees get their own position's range at hire, on a change of position and on first request. The law is enforced by private lawsuit.

Recent and coming changes

• Oct 1, 2026 Recent change: Public Act 26-12 (Substitute HB 5003) added the job advertisement requirement, benefits disclosure and the in-state or reporting coverage rule to 31-40z. Approved May 11, 2026; in effect since October 1, 2026. source Public record

Salary history ban: Yes (Conn. Gen. Stat. 31-40z(b)(5)). Added by Public Act 18-8, effective January 1, 2019: an employer may not ask, or direct a third party to ask, about a prospective employee's wage and salary history unless the prospective employee volunteered it; asking about other elements of the compensation structure, without their value, is allowed. source Public record

What was checked: Checked: Conn. Gen. Stat. 31-40z in the General Statutes on cga.ct.gov (the current revision, which refers readers to the 2026 Supplement for 2025 session changes and does not show the 2026 amendment), Public Act 21-30 and Public Act 26-12 as published by the General Assembly. Local ordinances were not surveyed.

Not confirmed: Connecticut Department of Labor guidance on the 2026 posting rule was not found or checked. Local ordinances were not surveyed.

Pay transparency rules in every state

For tax professionals

Checked Nov 3, 2026. Connecticut Department of Revenue Services (DRS)

Connecticut's power of attorney is Form LGL-001, completed, signed and attached in myconneCT; DRS publications name LGL-001, LGL-003 or a signed document with listed elements and do not mention the federal 2848. Paid preparers who prepare more than 10 Connecticut or federal individual returns for Connecticut clients for a fee need a two year DRS permit ($100, renewal $50) unless exempt as CPAs, attorneys, enrolled agents or others, and must hold a PTIN and an IRS AFSP record of completion. Preparers who prepared 50 or more Connecticut income tax returns in the prior year must e-file them.

Power of attorney

Form LGL-001, Power of Attorney (Rev. 09/23); Form LGL-003, Limited Power of Attorney, for receipt of mailings only. One or more individuals named as attorneys-in-fact (name, firm and address, FEIN); the form does not limit who may be named. Only the tax types and years or periods listed on the form, for the acts checked: receive (not endorse) refund checks, execute waivers, extend the assessment period, execute closing agreements, delegate or substitute, represent the taxpayer before DRS, and sign returns if stated. All official mailings still go to the taxpayer, with a copy to the representative. Completed and signed, then attached in myconneCT: More tab, Forms panel, Submit LGL-001 for Power of Attorney. No renewal stated. A new LGL-001 revokes all earlier powers of attorney on file for the same tax matters and periods. form source Public record

Federal Form 2848

Not stated No DRS statement on Form 2848 was found. For disclosure requests, IP 2018(6) accepts a properly completed LGL-001 or LGL-003, a signed document with the listed elements (representative's name, address and phone, tax types and periods, and taxpayer identifiers), or a Connecticut Durable Statutory Power of Attorney (long or short form) with general authority over taxes. source Public record

Information only

Form LGL-003, Limited Power of Attorney; Form LGL-002, Request for Disclosure of Tax Returns or Tax Return Information. LGL-003 has DRS mail blank returns, return information (including notices of assessment and billing statements) and refund checks to the named person, who is not authorized to represent the taxpayer before DRS. LGL-002 requests copies of returns or return information, one time only. On the return: Third Party Designee on Form CT-1040: entering "Preparer" lets DRS contact the paid preparer who signed the return about processing questions, missing information, refund or payment status and certain shared notices; it ends once DRS processes the return and no later than the due date of the next year's return. source Public record

Preparer registration

Required. Tax Preparer and Facilitator Permit. An individual who prepares more than 10 Connecticut income tax returns or more than 10 federal income tax returns for Connecticut clients, or a combination, for a fee; employees of a tax preparation business meeting that test; employees of a permit holder; and facilitators of refund anticipation loans or checks. Permits are issued to individuals, not businesses. Exempt: Accountants with an active Connecticut or other state license, attorneys and those working under an attorney's supervision, enrolled agents, government employees on official duty, employees or assistants of an exempt preparer, employees preparing only the employer's returns, fiduciaries for an estate, and IRS qualified volunteer preparers (VITA, TCE, low income taxpayer clinics). AFSP participation alone does not exempt. Fee: $100 initial application; permit valid two years; renewal $50; reactivation $50; nonrefundable. Must be 18 or older with a high school diploma and a PTIN, and show tax preparation experience, education or training (or be authorized in a state with similar rules); since January 1, 2022 an IRS Annual Filing Season Program record of completion for the year of application or renewal is required. Connecticut Department of Revenue Services, through the State of Connecticut eLicense portal. program source Public record

Preparer ID on returns

No state preparer number; paid preparers sign the return and enter their PTIN and the firm's FEIN. PTIN: required. Penalty: A civil penalty of $500 may be imposed if the PTIN is not used (Social Security numbers are no longer allowed). source Public record

E-file mandate for preparers

Return preparers who prepared 50 or more Connecticut income tax returns in the prior year (Conn. Agencies Regs. 12-690-1). Connecticut personal income tax returns, filed through the Federal/State MeF program. Separately, all taxpayers registered for business tax types such as sales and use, withholding, corporation business and room occupancy tax must file and pay electronically. source Public record

Transcripts and account records

Form LGL-002 attached to a secure message in myconneCT (More, Correspondence, Send a Message) or mailed to Contact Service Center, Department of Revenue Services, 450 Columbus Blvd, Ste 1, Hartford CT 06103-1837. Previously filed returns can also be viewed and printed in myconneCT under View/File Returns and View Period Detail. Form LGL-002, Request for Disclosure of Tax Returns or Tax Return Information (Rev. 11/22). Who can ask: The taxpayer, the taxpayer's authorized representative (with LGL-001, LGL-003 or another power of attorney meeting IP 2018(6)), or a successor with a material interest. Copies of returns, return information, or Forms W-2 or 1099, for income, sales and use, corporation business, gift and other taxes, for the periods listed; each request is one time only. Online for representatives: Yes for returns in a client account the preparer has added in myconneCT (view and print); other copies are requested with LGL-002. request source Public record

Online access for professionals

myconneCT (Third Party Bulk Filer or Standard access). Paid preparers manage client tax accounts from one login: file and amend returns, make payments, view account history, correspondence and previously filed returns; Third Party Bulk Filers can also bulk upload returns or payments for clients. A POA (LGL-001) and disclosure requests (LGL-002) are submitted through it. The preparer creates a username with the Third Party Bulk Filer (or Standard) access type, then uses More, Access group, Add Access to Another Business with the client's account information; access is immediate and the client does not have to confirm. source Public record

Practitioner line

State of Connecticut MeF Help Desk, exclusively for electronic transmitters and preparers: 860-297-4973, Ct.efile@ct.gov. source Public record

Recent and coming changes

• Beginning July 2026, most tax types are required to be filed electronically, with individual income tax the main exception source Public record

The permit requirement came from 2017 Conn. Pub. Acts 17-147 and took effect October 1, 2018, with permits required from January 1, 2019. Preparers must also give clients a written disclosure of name, address, phone, estimated fees and a secure storage warranty. Registered permit holders appear in a public registry on eLicense.

Not confirmed: Whether DRS accepts federal Form 2848 (no DRS statement found) Client opt-out or hardship waiver for the 50 return e-file mandate: the regulation text at eregulations.ct.gov is behind a bot check and was not read Penalty for failing to e-file under the preparer mandate Processing time for LGL-001 and turnaround or fee for LGL-002 The exact day in July 2026 for the business e-file expansion (the DRS page gives only the month) Hours of the MeF Help Desk

Rules for tax professionals in every state

Federal tax data sharing

14 IRS data-sharing agreements with agencies in Connecticut, for any purpose (TIGTA, as of March 2026) source Public record; FUTA credit certified to the IRS by Connecticut DOL source Public record; the workforce agency signed the IRS Questionable Employment Tax Practices (QETP) agreement in 2007 source Public record. FUTA: Exhibit 6 prints the agency as "CT DOL" (Wethersfield address); it does not spell out DOL. How the IRS shares tax data with the states

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