For the 2025–2026 fiscal year, the lowest tax towns in Connecticut by municipal mill rate are Washington at 10.85, Salisbury at 11.00, Sharon at 11.15, and Greenwich at 12.041.1State of Connecticut Office of Policy and Management. Mill Rates All four sit in Litchfield or Fairfield County. Before you read too much into those numbers, understand this: a low mill rate does not automatically produce a low tax bill. A $2 million home in Greenwich at 12.041 mills generates a tax bill over $24,000, while a $200,000 home in a town with a 40-mill rate produces only $8,000.
How the Mill Rate Actually Works
A mill equals one dollar of tax for every $1,000 of assessed value.1State of Connecticut Office of Policy and Management. Mill Rates Connecticut law requires every municipality to assess property at 70% of fair market value, so a home worth $500,000 on the open market carries an assessed value of $350,000.2Justia. Connecticut Code 12-62a – Uniform Assessment Date and Rate Multiply the assessed value by the mill rate, divide by 1,000, and you have the annual tax. At Salisbury’s 11.00 mill rate, that home would owe $3,850 per year. At 45 mills, the same assessed value produces $15,750.
Each town sets its rate annually by dividing its budget needs by the grand list, meaning the combined assessed value of all taxable real estate, motor vehicles, and personal property inside its borders. A large grand list spreads costs across a wide base and keeps the rate low. A thin grand list forces a higher rate to cover the same services. Budget divided by grand list. That is the entire mechanism.
The Towns with the Lowest Rates for 2025–2026
A handful of small, wealthy municipalities in the northwest and southwest corners of the state consistently sit at the bottom of the rankings:
- Washington (Litchfield County): 10.85 mills, the lowest municipal rate in Connecticut.
- Salisbury (Litchfield County): 11.00 mills, a figure that has held steady since at least the 2020 grand list.3Town of Salisbury Connecticut. Assessor
- Sharon (Litchfield County): 11.15 mills.
- Greenwich (Fairfield County): 12.041 mills, despite sitting in one of the most expensive real estate markets in the Northeast.
- Darien (Fairfield County): 15.48 mills for the 2024 grand list, down substantially after a revaluation.4Darien, CT. Frequently Asked Questions – Collector
- Old Saybrook (Middlesex County): 15.20 mills for the 2023 grand list, also reduced significantly following its revaluation year.5Old Saybrook, CT. Old Saybrook Mill Rate History
These rates look nothing like Connecticut’s urban centers, where mill rates routinely exceed 40 or even 50. Hartford, Waterbury, and Bridgeport regularly rank among the highest in the state. The gap reflects underlying economics: wealthy towns with high property values can raise enough revenue at low rates, while cities with less valuable property and greater service demands must charge more per dollar.
Why a Low Rate Rarely Means a Low Tax Bill
This is the most misunderstood part of Connecticut property taxes. The towns with the lowest mill rates also have the highest property values, and the two forces largely cancel out. Greenwich’s median home listing sits around $2.6 million. At 12.041 mills, the annual tax on a home assessed at 70% of that value (roughly $1.82 million) comes to about $21,900. In a town with a 35-mill rate where the median home is worth $250,000, the tax works out to roughly $6,125.
If your goal is the smallest possible tax bill in absolute dollars, the mill rate ranking will point you in the wrong direction. What matters is the mill rate multiplied by what you will actually pay for a house in that town. The municipalities at the very bottom of the rate list are almost always there because their real estate is extraordinarily expensive, not because their tax burden is light. A few towns manage moderate values alongside below-average rates, but they are not the ones at the top of the ranking.
What Keeps a Town’s Rate Low
The strength of a town’s grand list drives almost everything. When total taxable property value is high, the cost of schools, roads, and public safety divides across a larger base. Commercial and industrial property helps considerably. A single corporate campus or large retail development can contribute millions in annual revenue, offsetting what residential owners would otherwise pay.
Spending discipline matters too, but less than most people assume. A wealthy suburb can spend generously on schools and still hold a low rate because the denominator is so large. A small rural town that spends modestly can still carry a higher rate because its property base is thin. Growing the grand list or shrinking the budget are the only two levers available.
Check for Special Taxing Districts Before You Buy
A town’s published rate is not always the whole bill. Connecticut has 339 special taxing districts that levy their own taxes on top of the municipal rate.6State of Connecticut Office of Policy and Management. Best Practices and Guidelines for Connecticut Special Taxing Districts These independent entities fund fire protection, sewer systems, water infrastructure, beach maintenance, or lighting. If your parcel sits inside one of these districts, you pay the district’s mill rate on top of the town’s.
A town advertising a 12-mill rate might effectively cost you 16 or 18 mills once a fire district and sewer district add their levies. Before committing to a neighborhood, ask the local assessor which districts apply to a specific address. The Office of Policy and Management maintains records of every registered district.
Revaluations Explain the Biggest Rate Drops
Connecticut requires every town to conduct a full property revaluation at least once every five years.7Justia. Connecticut Code 12-62 – Revaluation of Real Property These revaluations bring assessed values back in line with the market. When values jump across the board, the town collects the same revenue at a lower mill rate. The rate drops, but most homeowners’ actual bills stay roughly the same or rise modestly.
That is why Old Saybrook’s rate fell from 20.46 mills to 15.20 after its most recent revaluation.5Old Saybrook, CT. Old Saybrook Mill Rate History The dramatic decrease is not the windfall it appears to be on paper. And if your property gained value faster than your neighbors’ during the revaluation cycle, your share of the town’s tax burden grows even as the mill rate falls. The system is built so every owner pays in proportion to current market value, not historical purchase price.
The takeaway: use the rate to understand a town’s tax structure, not to predict your bill. Pair every mill rate you see with the median assessed value of the homes you would actually consider buying, add any applicable district levies, and only then compare towns against each other.