In this article, we'll discuss the federal and state unemployment tax rate for Connecticut employers in 2026. Employers should also familiarize themselves with the other 2026 federal and state labor law updates for Connecticut employers.
Connecticut FUTA Rates
The following article outlines FUTA and SUTA tax information for Connecticut for 2026.
Standard FUTA Rates
Generally, the standard FUTA tax rate is 6.0% on the first $7,000 of wages subject to FUTA. Employers would receive a universal credit of 5.4% when they file their Form-940. This will result in a net FUTA tax rate of 0.6%.
2026 FUTA Credit Reduction for Connecticut
Connecticut will avoid a credit reduction for 2026 as a result of repaying its outstanding federal unemployment insurance loans before November 10th of 2025.
CT SUTA Rate 2026
In 2026, the state of Connecticut continued its effort to support CT employers as well as promote long-term UI Trust Fund solvency, by reducing the state unemployment tax rate to mitigate the impact of the federal tax credit reduction. The following Connecticut SUTA tax changes are effective as of January 1, 2025:
- The taxable wage base (TWB) increases from $26,100 to $27,000.
- The state’s new employer rate decreases from 2.2% to 1.9%.
- The state’s minimum charged rate is 0.1%.
- The state’s maximum charged rate is 10.0%.
- To minimize the short-term impact of the TWB increase, charged rates in calendar year 2026 will be reduced by 1.125. As such, the state’s maximum charged rate for calendar year 2026 will be reduced to 8.9%.
- The state’s fund solvency tax rate is 1.0%. If the average benefit ratio of all employers within a sector of the North American Industry Classification System (NAICS) increases by 1% or more over the average benefit ratio of that sector from the previous year, then the benefit ratio of each employer within such sector shall have their individual benefit ratio reduced by one-half of the increase.
- The minimum and maximum contribution rates for 2026 will be 1.1% and 9.9%, respectively.
Navigate Through Federal & State Unemployment Tax
Navigating the federal and state payroll taxes is not an easy task. Connecticut employers can consult with a CT payroll provider for personalized guidance and support to ensure compliance with payroll taxes. It is also important to be caught up on Connecticut Minimum Wage before processing payroll or collecting state payroll taxes.
Employers need to understand how these changes may affect their business and employees while making necessary adjustments to meet the new compliance requirements.
