Employee Cost: Connecticut vs North Carolina (2026)

Side-by-side comparison of employer costs, payroll taxes, SUTA rates, and workers' comp.

At a $60,000 salary

North Carolina saves $1,131/employee/year

$66,647 in Connecticut vs $65,516 in North Carolina

Connecticut

$66,647

1.11x salary

North Carolina

$65,516

1.09x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component CT NC Diff
Base Salary $60,000 $60,000
Social Security (6.2%) $3,720 $3,720
Medicare (1.45%) $870 $870
FUTA (0.6%) $42 $42
SUTA (State Unemployment) $725 $296 +$429
Workers' Compensation $990 $588 +$402
State-Mandated Insurance $300 $0 +$300
Total Employer Cost $66,647 $65,516 +$1,131

Tax Rate Comparison

Rate Connecticut North Carolina
SUTA Rate Range 1.5% – 6.9% 0.06% – 5.6%
SUTA Typical Rate 2.9% 1.0%
SUTA Wage Base $25,000 $29,600
Workers' Comp Rate 1.65% 0.98%
State Income Tax Yes Yes
Paid Family Leave 0.5% Not required

What This Means for Employers

For a business hiring at a $60,000 salary, choosing North Carolina over Connecticut saves $1,131 per employee per year in employer-side payroll costs alone. For a team of 10, that's $11,310 annually.

The biggest difference comes from SUTA (state unemployment tax) — Connecticut charges 2.9% vs North Carolina's 1.0%. Note that federal taxes (Social Security, Medicare, FUTA) are identical in both states.

These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.

Cost Comparison at Different Salary Levels

How the gap changes from $30K to $150K

Salary CT Total NC Total Difference
$30,000 $33,707 $32,927 +$780
$40,000 $44,687 $43,790 +$897
$50,000 $55,667 $54,653 +$1,014
$60,000 $66,647 $65,516 +$1,131
$75,000 $83,117 $81,811 +$1,307
$100,000 $110,567 $108,968 +$1,599
$125,000 $138,017 $136,126 +$1,892
$150,000 $165,467 $163,283 +$2,184

Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of CT.

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