How to Fill Out and Submit Form CT-W4P: Codes and Exemptions

Form CT-W4P is the Connecticut withholding certificate you give to your pension or annuity payer to tell them how much state income tax to take out of each payment. You complete it, choose a withholding code that matches your filing status and expected income, optionally add or subtract a dollar amount per payment, and send it to the payer, not to the Department of Revenue Services. For 2026, withholding from most retirement distributions is voluntary, so filing the form is how you opt in and set the amount.¹

If you skip the form, nothing is withheld. That is fine if another income source already covers your Connecticut tax or if you make quarterly estimated payments. If your pension is your main income and you do neither, you will likely owe interest at the end of the year.

What to Have in Front of You

Download the 2026 version of CT-W4P from the DRS withholding forms page or from your plan administrator.² Older versions use different income thresholds, so the year matters.

Before you write anything, gather:

Your Social Security number.
The filing status you expect to use on your Connecticut return: Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Surviving Spouse.
An estimate of your total annual gross income for the year. This drives your code.
The name and address of your payer, meaning the pension fund, retirement system, insurance company, or financial institution issuing your payments.

The form covers distributions from traditional pensions, 401(k) and 403(b) plans, IRAs, deferred compensation, and similar arrangements.³

Line 1: Pick Your Withholding Code

The chart on the form matches your filing status and expected income to a letter code from A through F. Each code maps to a different withholding schedule. Find your filing status below, then the income line that fits.¹

Married Filing Jointly

Code E: combined income of $24,000 or less, or no withholding needed because it is covered elsewhere.
Code A: spouse has income subject to withholding and combined income is more than $24,000 but no more than $100,500.
Code C: spouse does not have income subject to withholding and combined income is more than $24,000.
Code D: spouse has income subject to withholding and combined income exceeds $100,500, or you have significant other income and want higher withholding.

Single

Code E: expected income of $15,000 or less, or no withholding needed.
Code F: expected income of more than $15,000.
Code D: significant other income, higher withholding wanted.

Head of Household

Code E: expected income of $19,000 or less, or no withholding needed.
Code B: expected income of more than $19,000.
Code D: significant other income, higher withholding wanted.

Married Filing Separately

Code E: expected income of $12,000 or less, or no withholding needed.
Code A: expected income of more than $12,000.
Code D: significant other income, higher withholding wanted.

Qualifying Surviving Spouse

Code E: expected income of $24,000 or less, or no withholding needed.
Code C: expected income of more than $24,000.
Code D: significant other income, higher withholding wanted.

Code E produces zero withholding. Code D produces the highest withholding regardless of filing status and is the right pick if you have multiple income sources and worry about coming up short at filing time.

Lines 2 and 3: Adjust the Dollar Amount

After the code, two optional lines let you tune the exact amount per payment.¹

Line 2 adds a flat dollar amount to each payment’s withholding. Use it if other income, such as rental property or part-time work, pushes your total liability above what the code alone covers.
Line 3 subtracts a flat dollar amount. Use it if a pension income subtraction lowers your effective rate below what your code assumes.

To land on a sensible figure, estimate your total Connecticut tax for the year, subtract withholding from any other source, and divide the balance across your pension payments. The result tells you what per-payment withholding you actually need.

How Connecticut’s Retirement Exemptions Change Your Code Choice

Several state exemptions reduce or eliminate tax on retirement income. They matter here because they change what portion of your pension is actually taxable, which in turn changes the right code.

Pension and annuity subtraction. If your federal AGI is below $75,000 (single, married filing separately, or head of household) or below $100,000 (married filing jointly), you can subtract 100% of qualifying pension and annuity income, including 401(k), 403(b), and 457(b) distributions. The subtraction phases down at higher incomes, starting at 85% for the next bracket and reaching zero at $100,000 (single) or $150,000 (joint). Beginning in 2026, IRA income qualifies for the 100% subtraction under the same AGI thresholds.⁴ If the subtraction wipes out most of your pension income, Code E may be appropriate; if it only partially reduces the tax, a lower-withholding code paired with a Line 3 reduction can match your liability more closely.

Social Security. Social Security benefits are fully exempt from Connecticut tax if your AGI is below $75,000 (single or married filing separately) or below $100,000 (married filing jointly, qualifying surviving spouse, or head of household).⁵ Exempt Social Security lowers your total taxable income and can move you into a lower code bracket.

Military retirement pay. Fully exempt from Connecticut income tax. If military retirement is your only pension income, Code E is generally the right choice.

Connecticut Teachers’ Retirement Board pensions. Retirees can subtract 50% of that income with no income limit, or claim the 100% pension subtraction if they meet the AGI thresholds above. You cannot take both on the same income.⁶

Where to Send the Form

Send the completed CT-W4P directly to your payer, meaning the pension fund, state retirement system, insurance company, or financial institution issuing your payments.⁷ Do not send it to DRS. Many large plan administrators accept it through their online portals or by mail to their benefits department.

DRS does not process individual CT-W4P forms and cannot answer questions about how a specific payer applies your withholding; those questions go to the payer.⁷ After you submit, check the next couple of payment statements to confirm the withholding is reflected. Processing time varies by institution.

A Note on Lump Sum Distributions

Under Conn. Gen. Stat. § 12-705, lump sum distributions once carried mandatory withholding, but legislation effective July 1, 2025 suspended that requirement through December 31, 2026. During the suspension, payers withhold from a lump sum only if you request it on Form CT-W4P. Mandatory withholding on lump sums is scheduled to resume January 1, 2027. A lump sum distribution means a payment exceeding $5,000 or more than 50% of your account balance, whichever is less.³

When to File a New Form

The form stays in effect until you replace it. There is no annual renewal.¹ File a new one when:

Your filing status changes through marriage, divorce, or the death of a spouse.
Your income changes meaningfully, whether from a new part-time job, a spouse starting or stopping work, or a shift in other retirement income.
Your AGI moves you into or out of a pension subtraction bracket.
A mid-year check shows you are substantially over- or under-withheld.

Interest and the Penalty for False Information

If you underwithhold and do not cover the gap with estimated payments, Connecticut charges interest on the underpaid tax at 1% per month, or 12% annualized.⁸

You sign the form under penalty of law. Providing false information on a CT-W4P can result in a fine of up to $5,000, imprisonment for up to five years, or both.¹ The realistic risk is picking Code E to avoid withholding when you plainly owe tax, which invites both interest and questions.

1
Department of Revenue Services. Form CT-W4P Withholding Certificate for Pension or Annuity Payments 2026
2
Connecticut State Department of Revenue Services. Withholding Forms
3
Justia Law. Connecticut Code 12-705 – Withholding From Wages, Pensions, Annuities, Etc
4
Connecticut General Assembly. Income Tax Exemptions for Retirement Income
5
Department of Revenue Services. Information for Seniors
6
Connecticut Teachers’ Retirement Board. Income Tax Exemption for Teacher Pensions
7
Connecticut State Department of Revenue Services. CT-W4P Filing Instructions
8
Justia Law. Connecticut Code 12-722 – Underpayment and Payment of Estimated Tax