Connecticut conveyance tax: the state charge and the town charge

A $3M Connecticut house sale carries $38,500 in state conveyance tax plus $7,500 at the 0.25% municipal base rate, ordinarily paid by the seller. A municipality charging the permitted 0.50% total local rate adds $15,000 instead. Use the property’s actual municipal rate when estimating proceeds.

Under the residential schedule in effect on October 12, 2026, the state charges 0.75% on the first $800,000, 1.25% on the portion from $800,000 through $2.5 million, and 2.25% on the portion above $2.5 million. These are marginal brackets, so the highest applicable rate does not apply to the entire price. Connecticut DRS rate guidance.

Run the calculation before estimating proceeds

For an illustrative $3 million residential sale, the state portion is $6,000 on the first bracket, $21,250 on the second and $11,250 on the remaining $500,000: $38,500 altogether.

The municipal base is 0.25%. Eligible municipalities may impose an additional charge of up to 0.25%. At a 0.25% local rate, that illustrative sale adds $7,500; at 0.50%, it adds $15,000. Confirm the actual municipal rate rather than carrying an assumption from a neighboring town. Connecticut General Statutes, section 12-494.

Keep the different taxes separate

Conveyance tax is a transaction cost. It is distinct from annual property tax and from any income tax due on a gain. Paying one does not settle the others. The tax is calculated on taxable consideration, not the equity left after paying the mortgage.

Before relying on a net-proceeds estimate, identify the property classification, consideration, applicable exemptions and contract allocation. A conventional house sale should not be used as the template for a mixed-use property, a partial-interest transfer or a special exempt conveyance.

Connecticut’s OP-236 instructions govern the return filed with the town clerk. Counsel should reconcile the return with the deed and closing statement. The instructions also address transfers involving multiple deeds, which cannot be used to multiply the price brackets for one residential estate. Current forms and instructions.

Compare the full move

An owner selling in Connecticut and buying in Manhattan faces costs on both sides. Put Connecticut sale expenses in the proceeds column and New York acquisition expenses in the cash-to-close column. The two should meet in one dated schedule, with mortgage payoff, professional fees and any contractual charges included.

The town’s median sale price has no role in calculating the conveyance tax on an individual closing.