How Much Is Car Tax in CT? Mill Rates, Cap, and Exemptions

The car tax in CT is a local property tax calculated by taking 70% of your vehicle’s depreciated manufacturer’s suggested retail price (MSRP) and multiplying it by your town’s mill rate, which state law caps at 32.46 mills.¹ Because every one of Connecticut’s 169 municipalities sets its own rate, the same car can generate very different bills in neighboring towns.

How Your Vehicle Is Valued

Starting with the October 1, 2024 assessment year, Connecticut values motor vehicles using MSRP (the original sticker price) instead of the NADA average retail figure used in prior years. The assessor reduces the MSRP by a set depreciation percentage tied to the vehicle’s age, then multiplies that depreciated value by 70% to arrive at your assessed value — the number your tax is actually calculated on.¹

Default Depreciation Schedule

Most towns use the default schedule set by state law. The percentage of MSRP applied to your vehicle drops each year:²

Up to 1 year old: 85%
2 years: 80%
3 years: 75%
4 years: 70%
5 years: 65%
6 years: 60%
7 years: 55%
8 years: 50%
9 years: 45%
10 years: 40%
11 years: 35%
12 years: 30%
13 years: 25%
14 years: 20%
15–19 years: 15%
20 years and older: valued at no less than $500

A town can vote to adopt an alternative schedule that adds five percentage points at every bracket — 90% instead of 85% for a nearly new vehicle, and so on.² Check with your assessor’s office to find out which schedule applies to you.

A Worked Example

Take a five-year-old SUV with an original MSRP of $35,000 in a town that uses the default schedule and a 25-mill rate. The five-year percentage is 65%, giving a depreciated value of $22,750. Apply the 70% assessment ratio and you get an assessed value of $15,925. At 25 mills ($25 per $1,000 of assessed value), the annual tax comes to roughly $398.

Mill Rates and the 32.46 Cap

A mill equals $1 of tax for every $1,000 of assessed value. Each town sets its own rate during the annual budget process to cover schools, roads, and emergency services, which is why rates differ across the state. Motor vehicles can be taxed at a different mill rate than real estate and other personal property, but the combined motor vehicle rate — including any add-on from a taxing district within the town — cannot exceed 32.46 mills.³¹ The Connecticut Office of Policy and Management publishes a full mill-rate list each year.

When You Are Billed

The tax year runs from October 1 through September 30. If your vehicle is registered on October 1, it goes on that year’s Grand List and you receive the bill the following summer, with payment due July 1. Vehicles registered after October 1 land on a supplemental Grand List, and the tax is prorated for the months you owned the vehicle. Supplemental bills are typically due the following January 1.⁴

If you move between Connecticut towns after October 1, you still owe the full year’s tax to the town you lived in on that date. Towns do not split bills for partial-year residency. The new town picks up your vehicle on the next October 1 Grand List.

If you leave Connecticut, cancel your registration and return your plates to the DMV, either online or by mail using Form F-82. Otherwise, the vehicle stays on your town’s rolls and bills keep coming.⁵

Leased Vehicles

If you lease, the leasing company is legally liable for the tax because it holds title. Most lessors pass the cost through, either by building an estimate into your monthly payment or by billing you after they receive the tax notice. Read your lease to see how yours handles it, and whether you could owe extra if the actual tax exceeds the estimate.

Exemptions That Can Reduce or Eliminate Your Bill

Every exemption below requires an application with your local assessor. Miss the town’s filing deadline and you lose the benefit for that year.

Active-Duty Military

Members of the U.S. Armed Forces on active duty get a full property tax exemption for one motor vehicle per Grand List year under CGS § 12-81(53).⁶ Reapply each year.

Disabled Veterans

Veterans with a service-connected disability qualify for an exemption under CGS § 12-81(20). The statutory base depends on the disability rating:⁷

10–25%: $2,000
26–50%: $2,500
51–75%: $3,000
76–100%: $3,500

Towns then multiply that base by a revaluation-based factor, and an income-based adjustment can push it higher. Veterans with severe service-related injuries such as loss of a limb receive an additional exemption on top of the standard amount.⁷ Your assessor can tell you the exact number for your town.

Antique Vehicles

A qualifying antique, rare, or special-interest vehicle at least 20 years old, preserved for historical interest, and unaltered from the manufacturer’s specifications is assessed at no more than $500, no matter its actual market value.⁸

Blind and Permanently Disabled Residents

Legally blind residents can claim a $3,000 property tax exemption under CGS § 12-81(17), and residents who are permanently and totally disabled qualify for a $1,000 exemption under CGS § 12-81(55). Both apply across all your property, so the benefit reduces your total tax rather than the vehicle line specifically. Annual applications are required.

Appealing Your Assessment

Under the MSRP system, the only ground for appeal is that the MSRP used to value your vehicle is wrong.¹ Appeals go to the town’s Board of Assessment Appeals, which meets in March (for the October 1 assessment that produces your July bill) and September (for the bill you received the previous July).

Bring proof of the correct MSRP: the original window sticker, manufacturer records, or a dealer printout. Contact the assessor’s office early — some towns require sign-ups weeks in advance. And pay the bill on time even while your appeal is pending. Interest and penalties accrue regardless of the outcome.

Credits for Sold, Totaled, or Stolen Vehicles

If you sell, total, junk, or have a vehicle stolen after October 1, you may be owed a pro-rata credit for the months you no longer had it.⁹ The assessor needs two documents:

Always required: your CT DMV plate cancellation receipt.⁵
Sold vehicle: bill of sale, the new owner’s registration or title, your title showing transfer, or a letter from your insurer with the cancellation date.
Totaled or junked: an insurance letter stating the vehicle was totaled (with date and vehicle details) or a salvage yard receipt.
Stolen: an insurer statement that the vehicle was stolen and not recovered, or a copy of the police report.

The plate cancellation receipt alone is not enough. Every document must be legible, dated, and include the VIN, make, and year.

Paying Late and the DMV Hold

Most towns take payment online, by mail, or in person at the tax collector’s office. If you need a DMV registration hold cleared fast, paying in person with cash or a card usually lets the tax office issue an electronic release sooner than a mailed check.

State law gives you a 30-day grace period after the due date. Pay after that and interest of 1.5% per month (18% per year) is mandatory on the outstanding balance. The tax collector has no authority to waive it.¹⁰ Delinquent accounts can be sent to collections, and any collection fees are added to what you owe.¹¹

The bigger consequence is at the DMV. Once your town reports you as delinquent, you cannot register or renew any vehicle until the tax and all accrued interest are paid in full.¹² You can check your status through the DMV’s online compliance tool before you attempt any transaction.¹³

1
Connecticut General Assembly. Personal Motor Vehicle Property Tax Assessments and Rates (2025)
2
Connecticut General Assembly. Public Act 25-2
3
CT.gov. Mill Rates
4
Glastonbury, CT. Motor Vehicle Information
5
CT.gov. Cancel Vehicle or Vessel Registration
6
Connecticut General Assembly. Motor Vehicle Tax Exemption for Active Duty Service Members
7
Connecticut General Assembly. Veterans Property Tax Exemptions by Town
8
Justia Law. Connecticut Code Title 12 Chapter 203 – Section 12-71
9
Justia Law. Connecticut Code Title 12 Chapter 203 – Section 12-71c
10
CT.gov. Statutes Governing Property Assessment and Taxation
11
Justia Law. Connecticut Code Title 12 Chapter 204 – Section 12-166
12
CT.gov. Learn About Sales Tax on First Time Vehicle Registrations
13
CT.gov. Check for Compliance Issues