Connecticut Real Estate Conveyance Taxes

posted by Judith Ellenthal January 16, 2015

In Connecticut, the Sellers are responsible for paying a conveyance tax upon the transfer of title to real property. There are two conveyance taxes to be paid, one to the state and one to the municipality where the property is located.

Some real estate transactions are exempt from conveyance tax, including transfers between spouses, sales to certain non-profit entities, and foreclosures by sale. The state conveyance tax is .0075 (.75%) of the sales price up to $800,000.00. Any amount above $800,000 is taxed at .0125 (1.25%). The municipal conveyance tax is 0.0025 (.25%) for most towns. There are 18 eligible municipalities that are permitted to impose a tax of up to 0.005 (.5%).

The 18 towns permitted to maintain higher rates are:

Bloomfield Bridgeport
Bristol East Hartford
Groton New London
Hamden Hartford
Meriden Middletown
New Britain New Haven
Norwalk Norwich
Southington Stamford
Waterbury Windham

The Stamford municipal tax rate is 0.35%. The Norwalk rate is 0.50%.

A sale of property for $800,000 that is not exempt from the conveyance tax and not located in one of the eighteen towns with higher rates would require payment of $8,000 in conveyance taxes: $6,000.00 in state tax (.75%), and $2,000 in municipal taxes (.25%). Property valued at $1,400,000.00, would require payment of total conveyance tax of $17,000. The state tax would be $13,500.00: .75% of the first $800,000, plus 1.25% of the remaining $600,000. The municipal tax in a town imposing a tax rate of .25% would add $3,500.00 in conveyance taxes.

Subscribe to receive our quarterly newsletter with law tips, case studies and firm news.