HOW TO CALCULATE 2012 CT CONVEYANCE TAX

Connecticut Real Estate Conveyance Tax – Residential Property (July 1, 2011)

The Connecticut real estate conveyance tax has two parts: a state tax portion and a municipal tax. In addition, 18 selected towns have a higher tax rate. Municipal town clerks collect the tax and remit the state share to the Department of Revenue Services (CGS-12-494 to 504h)

New State Tax (Effective July 1, 2011)

The tax is 0.75% on the first $800,000 of value and 1.25% on the remaining value.

Many types of transactions are exempt from the tax, including transfers between spouses, sales to certain nonprofit entities, and certain relocation company resales of residential property acquired through employee relocation plans.

Municipal Tax (Effective July 1, 2011)

In addition to the state tax, sellers must pay a municipal real estate conveyance tax. The municipal tax rate is 0.25% for all towns plus an additional tax of up to 0. 25% for 18 eligible towns that chose to impose the increased rate. Thus, the municipal tax rate can range from 0.25% to 0.5%, depending on where the property is located.

The law allows 18 towns to adopt the higher tax rate. All 18 have done so. They are the targeted investment communities and a town that has a manufacturing plant that qualifies for enterprise zone benefits: Bloomfield, Bridgeport, Bristol, East Hartford, Groton, Hamden, Hartford, Meriden, Middletown, New Britain, New Haven, New London, Norwalk, Norwich, Southington, Stamford, Waterbury, and Windham.

Examples

 

 

 Municipal Tax

State Tax

Total   Tax

Residential

     

 

$800,000 or less

0.25%**

0.75%

1.00%

 

Portion over $800,000

0.25%**

1.25%

1.50%

 

Non-Residential

0.25%**

1.25%

1.50%

 

           

 

Exemptions

  1. Foreclosure sales conducted pursuant to a foreclosure by sale conducted by a court committee
  2. Deeds in lieu of foreclosure
  3. Most short sales
  4. Properties valued less than $2,000