Real estate transfer tax is imposed when buying and selling properties in Connecticut. The Real Estate Transfer Tax or Real Estate Conveyance Tax applies to both residential and non-residential properties in Connecticut. Below you will find more information on CT Real Estate Transfer Tax Rates as well as a calculator to help you compute your CT Real Estate Conveyances taxes.
What is the Connecticut Real Estate Conveyance Tax?
The Real Estate Conveyance tax in Connecticut is a 2 part tax- one part is a Municipal transfer tax and the other part is the a State transfer tax. The Real Estate Conveyance Tax in Connecticut are paid to the town clerk prior to recording and the the payment is reflected on the deed.
Note: The real estate transfer tax rate in Connecticut for non-residential properties is different from residential properties. In this article, we will only be covering the Real Estate Conveyance taxes for residential properties in Connecticut.
What is the CT Municipal Conveyance Tax Rate?
The Connecticut Municipal conveyance tax rate is 0.25% of the total selling price of the property. The rate of 0.25% is the municipal conveyance tax rate for most Connecticut municipalities, however, there are 19 municipalities that have the option of adding an extra 0.25%.
These CT municipalities have the option of imposing up to 0.5% Municipal Conveyance tax. They are in Connecticut’s “Targeted Investment Communities”. These municipalities are Bloomfield, Bridgeport, Bristol, East Hartford, Groton, Hamden, Hartford, Meriden, Middletown, New Britain, New Haven, New London, Norwalk, Norwich, Southington, Stamford, Thomaston, Waterbury and Windham. All of these municipalities have added the extra 0.25% to their municipal conveyance tax rates with the exception of Stamford, Groton and Thomaston. Stamford added an extra 0.10% to their municipal conveyance tax for properties $1 million and below while for properties above $1 million, Stamford added the extra 0.25% to the real estate conveyance tax. Thomaston and Groton did not add any extra municipal conveyance tax.
|Connecticut Municipalities that Can Add Municipal Conveyance Tax|
What is the CT State Conveyance Tax Rate?
The Connecticut State Conveyance tax rate is 0.75% for the first $800,000 of the selling price of the property and any amount between $800,000-$2.5M is taxed at a rate of 1.25% and any amount over $2.5M is taxed at a rate of 2.25%.
|Property Type||CT State Conveyance Tax Rate|
|Residential Property (Selling Price $800,000 and Below)||0.75%|
|Residential Property (Selling Price between $800,000-$2.5M)||1.25%|
|Residential Property (Selling Price above $2.5M)||2.25%|
How is Connecticut Real Estate Conveyance Tax Calculated?
The Connecticut Municipal transfer tax is calculated using this formula:
CT Municipal Conveyance Tax= Selling Price x .0025
The Connecticut State transfer tax is calculated using this formula:
CT State Conveyance Tax= (Selling Price up to $800,000 x .0075)+ (Selling Price between $800,000 to $2.5M x .0125)+ (Selling Price over $2.5M x .0225)
Who Pays the Real Estate Conveyance Tax in Connecticut? Is it the Buyer or Seller?
In Connecticut, the seller typically pays the Real Estate Conveyance Tax. There may be some exceptions to this practice but typically the seller pays the Real Estate Transfer tax in CT.
Connecticut Property Transfer Tax Calculator
Below you will find 3 calculators to help you compute your Connecticut Property transfer tax. The first calculator are for properties with selling price of $800,000 and below, the second calculator are for properties with selling price $800,000 to $2.5 million and the third calculator are for properties with selling price over $2.5 million. Note that the municipal conveyance tax rates used in all three calculators is 0.25%. That means if you are transferring properties in one of the 19 municipals that can impose additional taxes, you should manually add the extra municipal taxes to your calculation.
1. Properties $800,000 and Below
2. Properties Between $800,000 to $2.5 million
3. Properties Over $2.5 million
Note: Please check for the latest Real Estate Conveyance Tax Rates from the CT Department of Revenue Services Website. The calculator above are for estimation purposes only.
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