New Month, New Income Tax Formula

Today, August 1st, 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 percent, 5 percent, 5.5 percent, 6 percent and 6.7 percent.                                                                      
2.  The 3 percent rate is phased out for taxpayers with Connecticut adjusted gross income as follows: 

• Over $56,500 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: 

• Adjusted gross income over $200,000 filing single 
• Adjusted gross income over $320,000 for head of household
• Adjusted gross income over $400,000 for married filing jointly and 
• Adjusted gross income over $200,000 for married filing separately.

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

$39.46

Please 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: http://www.ct.gov/drs/lib/drs/forms/2011withholding/2011withholdingcombinedcatchupwithholdingtaxtables.pdf

More detailed information can be found on the Department of Revenue website:  www.ct.gov/drs. 

Best Regards, 
John Hetherington 
State Representative, 125^th District 
New Canaan, Wilton