CT Conveyance Tax Calculator: State Rates, Towns, and Exemptions

The Connecticut conveyance tax is paid by the seller at closing on any property transfer of $2,000 or more. The state’s share runs from 0.75% to 2.25% depending on the sale price and property type, and the town where the property sits adds either 0.25% or 0.50% on top. Your total bill comes down to three inputs: price, property type, and municipality.

State Rates by Property Type

Connecticut sets different state rates for residential property, non-residential property, and unimproved land.

Residential Sales Under $800,000

The state charges a flat 0.75% of the full sale price.¹

Residential Sales of $800,000 or More

A tiered structure takes over once the price crosses $800,000:

First $800,000 taxed at 0.75%
$800,001 to $2,500,000 taxed at 1.25%
Amount above $2,500,000 taxed at 2.25%

The top tier is the one sellers of high-value homes often miss. On a $3 million sale, the 2.25% rate applies only to the $500,000 above $2.5 million, but it still adds $11,250 that would not exist at a lower price point.¹

Non-Residential Property

Commercial buildings, retail space, and other non-residential property are taxed at a flat 1.25% of the entire sale price. No tiered breaks apply.¹

Unimproved Land

Property designated as farm, forest, or open space is specifically excluded from the higher non-residential rate and taxed at the base 0.75%.²

Municipal Rates

Every Connecticut town adds its own conveyance tax. The standard municipal rate is 0.25% of the sale price.¹

Towns classified as targeted investment communities, or towns containing designated manufacturing plants, may impose an additional 0.25% for a combined municipal rate of 0.50%.² Towns currently charging the full 0.50% include Bloomfield, Bridgeport, Bristol, East Hartford, Hamden, Hartford, Meriden, Middletown, New Britain, New Haven, New London, Norwalk, Norwich, Southington, Waterbury, West Haven, and Windham.

Three Worked Examples

$400,000 Residential Sale in a Standard Town

The price is under $800,000, so the state uses the flat 0.75%.

State: $400,000 × 0.75% = $3,000
Municipal: $400,000 × 0.25% = $1,000
Total: $4,000

$1,000,000 Residential Sale in a 0.25% Town

The price crosses $800,000, so the tiered state rates apply.¹

State on first $800,000: $6,000
State on remaining $200,000 at 1.25%: $2,500
Municipal: $1,000,000 × 0.25% = $2,500
Total: $11,000

In a 0.50% municipality the municipal portion doubles to $5,000, bringing the total to $13,500.

$3,000,000 Residential Sale

All three state tiers come into play.

State on first $800,000: $6,000
State on $800,001–$2,500,000 at 1.25%: $21,250
State on amount above $2,500,000 at 2.25%: $11,250
Municipal: $3,000,000 × 0.25% = $7,500
Total: $46,000

A seller at $3 million pays $38,500 in state tax alone, compared with $8,500 on a $1 million sale.¹

Transfers That Are Exempt

Not every property transfer triggers the tax. Under CGS § 12-498, exempt transactions include:

Any deed where the total consideration is less than $2,000
Transfers between spouses, regardless of whether money changes hands
Deeds made under a Superior Court decree dividing marital property in a divorce
Deeds involving the state, its political subdivisions, or their agencies
Deeds that secure a debt or release security for a debt
Deeds executed as part of a corporate merger
Deeds resulting from a court-ordered foreclosure by market sale

The seller still files Form OP-236 and identifies the specific exemption on the form. The filing requirement does not go away; only the payment does.³

A genuine gift of real property, where no money or other value changes hands, falls under the under-$2,000 exemption because the consideration is zero. The Connecticut tax will not apply, but a gift of real property worth more than $19,000 may still trigger federal gift tax reporting on IRS Form 709.⁴

Selling the Entity Instead of the Property

Connecticut taxes the sale or transfer of a controlling interest in any entity that owns real property in the state. When the underlying property is worth $2,000 or more, the tax is 1.11% of the real property’s actual value, paid by the person selling the controlling interest.⁵ This catches deals structured as a business sale rather than a direct property sale, where the deed never technically changes hands.

Filing, Payment, and What Happens If You Get It Wrong

The seller files a completed Form OP-236 with the town clerk in the municipality where the property is located, at the same time the deed is recorded.² The clerk will not record the deed without the return and full payment.⁶

Payment comes in two checks: one to the Commissioner of Revenue Services for the state portion, one to the municipality for the local portion. Form OP-236 is available on the Department of Revenue Services website.⁷

Because the deed cannot be recorded without payment, late filing is uncommon. The real risk is underpayment. If the Department of Revenue Services issues a deficiency assessment after closing, the unpaid balance accrues interest at 1% per month from the original due date. Negligence adds a penalty of 10% of the deficiency or $50, whichever is greater. Deliberate fraud carries a 25% penalty.²

1
Justia. Connecticut Code 12-494 – Imposition of Tax on Conveyances of Real Property for Consideration
2
Connecticut General Assembly. Connecticut Code Chapter 223 – Real Estate Conveyance Tax
3
Justia. Connecticut Code 12-498 – Exempt Transactions
4
Internal Revenue Service. Gifts and Inheritances
5
Justia. Connecticut Code 12-638b – Tax on Transfer of Controlling Interest
6
Connecticut Department of Revenue Services. Instructions for OP-236 Connecticut Real Estate Conveyance Tax Return
7
Connecticut State Department of Revenue Services. Real Estate Conveyance Tax Forms