Nonresidents who work in Connecticut

Wages of a nonresident employee are subject to Connecticut income tax withholding if the wages are paid for services rendered in Connecticut. Wages of a nonresident are not subject to Connecticut income tax withholding if the wages are paid for services performed entirely outside of Connecticut.

Example: Working solely within Connecticut: A resident of Massachusetts works in Connecticut for an employer that is doing business in Connecticut and in Massachusetts. The employer is required to withhold Connecticut income tax because the services are performed in Connecticut.

Example: Working solely outside Connecticut: A resident of New York works in New York for an employer whose main office, including the payroll department, is located in Connecticut. The employer is not required to withhold Connecticut income tax even though payment is made from a point in Connecticut, because the employee is a nonresident and performs all services outside Connecticut.

Example: Working partly within and partly outside Connecticut: A resident of Rhode Island works partly in Connecticut and partly in Rhode Island for an employer who is doing business in Connecticut and Rhode Island. The employer is required to withhold Connecticut income tax on wages paid to the nonresident employee in the same proportion that the employee’s wages derived from or connected with sources within Connecticut relate to the employee’s total wages.

Further information on withholding requirements for nonresidents working in Connecticut are found in the Circular CT, Employer's Tax Guide.