What Connecticut's Conveyance Tax Costs Sellers

by Agnes Mroczka

Quick Answer: Connecticut charges a real estate conveyance tax on every home sale, paid by the seller at closing. It has two parts: a state tax (0.75% on the first $800,000 of the sale price, 1.25% on the portion above that, up to $2.5M) and a municipal tax (typically 0.25%, though some towns charge more). On a $500,000 sale, that's roughly $5,000 combined — separate from commissions, attorney fees, and other closing costs.

How the Tax Is Structured

Connecticut's conveyance tax is split into two layers, both calculated on the final sale price and both customarily paid by the seller at closing:

State conveyance tax: 0.75% on the portion of the sale price up to $800,000; 1.25% on the portion between $800,000 and $2.5 million (higher tiers apply above that).
Municipal conveyance tax: 0.25% in most towns. A smaller number of towns designated as "targeted investment communities" are permitted to charge up to 0.50%.

A Worked Example

On a $500,000 sale in a town with the standard 0.25% municipal rate: state tax is $500,000 × 0.75% = $3,750, and municipal tax is $500,000 × 0.25% = $1,250, for a combined conveyance tax of $5,000. This is due at closing and is separate from the real estate commission and attorney fees.

First-Time Buyer Exception (This One Helps Buyers, Not Sellers)

Worth knowing even though it doesn't affect sellers directly: first-time buyers purchasing a home for $300,000 or less can qualify for a reduced state conveyance tax rate on the state portion. This doesn't change what a seller owes, but it's a useful thing to mention if the buyer is a first-timer asking about their own closing costs.

Why This Catches Sellers Off Guard

Most sellers are focused on commission and repair costs going into a sale — conveyance tax rarely comes up until the closing statement, and by then it's not something that can be negotiated away. Walking sellers through this number early, alongside commission and attorney fees, means no surprises at the closing table.

FAQ

Who pays the conveyance tax in Connecticut, the buyer or the seller?

The seller (grantor) is legally responsible for the conveyance tax under Connecticut law, and it's paid at closing before the deed can be recorded.

Is the Connecticut conveyance tax the same in every town?

The state portion is the same statewide, but the municipal portion can vary — most towns charge 0.25%, while some designated "targeted investment communities" can charge up to 0.50%.

Are there any exemptions to the conveyance tax?

Yes — certain transfers are exempt (such as some foreclosure sales), and there's a reduced state rate for first-time buyers purchasing at $300,000 or below. A closing attorney can confirm whether a specific exemption applies to a given sale.

Selling Soon?

Every seller deserves a full net-proceeds picture — commission, attorney fees, conveyance tax, and anything else specific to their situation — before a sign ever goes in the yard.

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