Conveyance Taxes in Connecticut
Only the Sellers of Real Estate in Connecticut are subject to State and Local conveyance taxes. No such levies are placed upon the Buyers. These are taxes that are collected at the closing table, normally by the closing attorneys. Sellers should be made aware of their taxable obligation by their Realtor.
The State portion of this tax is three quarters of one percent of the selling price up to $800,000.00 and 1.25% over $800,000.00
The Local portion is .25% except the targeted communities* listed below. These communities are allowed to charge tax at closing of .5%
How about some examples?
A Guilford sale of $500,000.00 would have a State tax of $3,750.00 ($500,000 X .0075) and a local tax of $1,250.00 ($500,000.00 X .0025) for a total of $5,000.00
A Madison sale of $900,000.00 would have a State tax of $7,250.00 (.0075 X $800,000.00 plus .0125 X $100,000.00) plus a local tax of $2,250 ($900,000.00 X .0025) for a total of $9,500.00
There are exemptions from the real estate conveyance taxes for foreclosures, deeds in lieu of foreclosure, and most short sales. If you are in such a situation, please check with your Attorney to clarify the fine print on all real estate conveyance taxes in Connecticut.
*Targeted communities are Bloomfield, Bridgeport, Bristol, East Hartford, Groton, Hamden, Hartford, Meriden, Middletown, New Britain, New Haven, New London, Norwalk, Norwich, Southington, Stamford, Waterbury, and Windham.