Connecticut Conveyance Tax and Seller Closing Costs: What You’ll Really Pay

When you sell a house in Connecticut, the sale price isn’t what lands in your bank account. A handful of costs come out first, and one of them, the real estate conveyance tax, catches a lot of sellers off guard. In Connecticut, the seller pays it, and it’s figured as a percentage of the sale price.

This guide explains how the conveyance tax works, how to estimate it, when you might not owe it, and the other closing costs Connecticut sellers usually see.

This is general information, not legal or tax advice. Your closing attorney can tell you exactly what applies to your sale.

What Is the Connecticut Conveyance Tax?

The conveyance tax is a tax on the deed when real estate changes hands. It applies when the price is $2,000 or more. It has two parts that are added together:

• The state tax, which goes to the Connecticut Department of Revenue Services.
• The town (municipal) tax, which goes to the town where the property is located.

Your town clerk collects both when the deed is recorded. Your attorney files Form OP-236, the Connecticut Real Estate Conveyance Tax Return, as part of the closing.

The State Rate

For a typical home (a single-family house or a condo), the state tax works in brackets, a bit like income tax:

• 0.75% on the part of the price up to $800,000
• 1.25% on the part from $800,000 to $2.5 million
• 2.25% on the part over $2.5 million

Other residential property, like apartment buildings, and vacant land are taxed at 0.75%. Commercial property is taxed at 1.25%.

The Town Rate

Every Connecticut town charges a base local rate of 0.25%. A short list of towns is allowed to add up to another 0.25%, for a local rate as high as 0.5%.

According to a 2020 report from the state’s Office of Legislative Research, the towns eligible for the higher rate included Bridgeport, Hartford, New Haven, Waterbury, Hamden, Meriden, New Britain, Bristol, East Hartford, Middletown, New London, Norwalk, Norwich, Southington, Windham, Bloomfield, Groton, Stamford, and Thomaston. Most of them charged the full extra amount at that time. Stamford charged a smaller add-on on homes up to $1 million, while Groton and Thomaston did not add it.

Rates can change, so call your town clerk to confirm the current local rate before you budget.

Example: How Much Will You Owe?

These are examples to show the math, not quotes for any real sale.

Example 1: $350,000 house in a town with a 0.25% local rate

• State: $350,000 × 0.75% = $2,625
• Town: $350,000 × 0.25% = $875
• Total: $3,500

Example 2: The same $350,000 house in a town with a 0.5% local rate

• State: $2,625
• Town: $350,000 × 0.5% = $1,750
• Total: $4,375

Example 3: $1,000,000 house in a town with a 0.25% local rate

• State: ($800,000 × 0.75%) + ($200,000 × 1.25%) = $6,000 + $2,500 = $8,500
• Town: $1,000,000 × 0.25% = $2,500
• Total: $11,000

When You Might Not Owe Conveyance Tax

State law (C.G.S. § 12-498) lists transfers that are exempt. A few that matter to homeowners under pressure:

• Underwater sales of your home. If you’re selling your principal residence and the price isn’t enough to pay off the mortgages plus certain town taxes and liens, the sale is exempt. This can apply to many short sales.
• Deeds in lieu of foreclosure on your principal residence.
• Crumbling foundations. The first sale of a principal residence after a licensed engineer confirms the foundation was made with defective concrete containing pyrrhotite is exempt, unless you got repair money from the Crumbling Foundations Assistance Fund.
• Certain court-ordered transfers, such as some divorce decrees and foreclosure-by-market-sale judgments.
• Transfers between spouses.

There’s also a partial break: seniors and people with disabilities who were approved for certain state property tax relief programs may be exempt from the state part of the tax on the sale of their home. Ask your attorney whether you qualify.

Other Seller Closing Costs in Connecticut

The conveyance tax is only one line on the settlement statement. Here’s what else typically comes out of a seller’s proceeds:

• Mortgage payoff. Your remaining loan balance, plus interest up to the payoff date.
• Real estate commission, if you list with an agent. Commissions are negotiable, and since 2024 buyer-agent pay is negotiated separately, so ask any agent exactly what you’ll pay.
• Attorney fees. In Connecticut, closings are usually handled by attorneys, and most sellers hire one.
• Property tax adjustments. Taxes are split between buyer and seller based on the closing date.
• Liens and back taxes. Any unpaid property taxes, sewer or water liens, or judgment liens must be paid off at closing.
• Repair credits. If a buyer’s inspection turns up problems, you may be asked to fix them or give a credit.

Two Connecticut rules that can cost you

• Property condition report. Sellers of most homes with one to four units must give the buyer the state’s Residential Property Condition Report before the buyer signs a contract. If you don’t, you owe the buyer a $500 credit at closing.
• Smoke and carbon monoxide detector affidavit. For one- and two-family homes and condos, sellers must give the buyer a signed affidavit about the detectors at closing. Since October 2023, sellers can no longer pay a $250 credit instead.

How a Cash Sale Changes the Math

The conveyance tax applies to a cash sale just like a listed sale. But other costs can shrink or disappear when you sell to a direct cash buyer:

• No agent commission.
• No repairs or inspection credits, because the house is bought as-is.
• No months of mortgage, tax, insurance, and utility payments while you wait for the right buyer.

That doesn’t mean cash is always the better choice. A listing may bring a higher price. The smart move is to compare what you’d actually take home both ways. Our cash offer vs. listing comparison lays it out side by side.

Common Questions

Does the buyer or seller pay conveyance tax in Connecticut?

The seller pays it. It’s collected by the town clerk when the deed is recorded.

Is the conveyance tax based on the sale price or the assessed value?

It’s based on the price paid for the property (the “consideration”), not the town’s assessed value.

Do I pay conveyance tax if I sell for less than I owe?

Possibly not. If it’s your principal residence and the price can’t cover the mortgages and certain town liens, state law exempts the sale. Confirm with your attorney.

Are closing costs higher in some Connecticut towns?

The local part of the conveyance tax can be 0.25% to 0.5%, depending on the town. Check with your town clerk for the current rate.

Find Out What You’d Really Walk Away With

At True Home Offer, we buy houses as-is across Connecticut, including in Hartford, New Haven, Bridgeport, Waterbury, Hamden, and Stamford. We’ll give you a clear, no-obligation cash offer so you can compare it with listing and see your real bottom line.

Call (203) 297-8734 or get your cash offer online. There’s no pressure, and you’re never obligated to accept. Learn more about us on our homepage.