Web Developer Taxes in Connecticut - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Web Developer in Connecticut

Connecticut’s thriving tech scene offers numerous opportunities for skilled web developers, but navigating the tax landscape as a freelancer requires careful planning. As a self-employed web developer, understanding your federal and state tax obligations is crucial for financial health.

The IRS requires all self-employed individuals, including web developers, to report income and expenses on Schedule C (Profit or Loss From Business) with Form 1040. Furthermore, earnings exceeding $400 necessitate the payment of self-employment tax, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is essential to maximize deductions and ensure compliance.

How Connecticut Handles Gig Worker Taxes

As a resident of Connecticut, a state income tax return is required, regardless of income level. Connecticut operates under a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Connecticut residents filing as self-employed individuals will primarily utilize Form CT-1040, Connecticut Resident Income Tax Return, along with Schedule 1 (Connecticut Adjustments to Federal AGI) and Schedule CT-SE (Self-Employment and Business Income). Connecticut’s tax rates for 2025 are projected to range from 3.0% to 6.99%, depending on your filing status and taxable income. It’s important to note that Connecticut does not offer a standard deduction equivalent to the federal level; instead, it provides a standard deduction amount that is adjusted annually. Estimated tax payments are generally required quarterly if your expected tax liability exceeds $1,000. Failure to make timely estimated payments can result in penalties. Connecticut also allows for certain business-related credits and deductions that can reduce your overall tax burden. Detailed information and forms can be found on the official Connecticut Department of Revenue Services website: Connecticut Department of Revenue Services.

Key Tax Deductions for Home-Based Web Developers

• Home Office Deduction: The home office deduction allows web developers to deduct expenses related to the portion of their home exclusively and regularly used for business. “Exclusive use” means that space is used solely for work, and not for personal activities. “Regular use” implies consistent and frequent use for business purposes. Taxpayers can choose between the simplified method, calculating the deduction at $5 per square foot of the home used for business, up to a maximum of 300 square feet, or the actual expense method, which involves calculating the percentage of the home used for business and deducting a proportionate share of mortgage interest, rent, utilities, insurance, and depreciation.
• Hardware & Software: The cost of essential hardware, such as computers, monitors, and cameras, directly used for web development work is deductible. Software expenses, including subscriptions to tools like Adobe Creative Cloud, web hosting services, and development environments, are also deductible business expenses.
• Internet & Phone Bill: If a portion of your internet and phone service is used for business, you can deduct the business-use percentage. For example, if 60% of your internet usage is for client work, you can deduct 60% of your internet bill.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, any travel to meet clients, attend industry events, or run business-related errands can be claimed using the standard mileage rate set by the IRS, or by tracking actual vehicle expenses.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the FICA taxes withheld from employees’ paychecks. However, as a self-employed individual, you are responsible for paying both the employer and employee portions of these taxes. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).