Selling residential property comes with conveyance tax, or a tax on the transfer of property. This tax is paid by the seller, unless otherwise noted in the purchase agreement. In Connecticut, there is a conveyance tax at both the state and municipal level. Municipal town clerks collect the entire conveyance tax and give the state portion to the Department of Revenue Services.
State Conveyance Tax: CT bases its state conveyance tax on the value of the property. For residential real estate property that is sold for less than $800,000, the tax is 0.75%. The tax increases to 1.25% for any amount exceeding $800,000.
Municipal Conveyance Tax: In addition to the state conveyance tax, there is a municipal conveyance tax for each town. Most towns in CT have a municipal tax of .25%.
Exceptions: There are certain instances where a transfer of property is excempt from conveyance tax. These include a transfer of property between spouses, sales to qualified non-profit entities and foreclosures.
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