The Connecticut conveyance tax brackets, and the property types they do not cover
The 0.75% / 1.25% / 2.25% schedule everyone quotes applies to houses and condominiums. Commercial sellers pay on a different schedule entirely.
Search for the Connecticut conveyance tax and you will find the same three numbers everywhere: 0.75%, 1.25%, 2.25%. Those numbers are correct, and they are incomplete in a way that costs commercial sellers real money.
The schedule everyone quotes
For a residential dwelling, meaning a single-family home or a condominium, the state conveyance tax is marginal across three brackets:
- 0.75% on the first $800,000
- 1.25% on the portion from $800,000 to $2,500,000
- 2.25% on anything above $2,500,000
A $450,000 house owes $3,375 in state tax. A $1,000,000 house owes $8,500.
The schedules nobody quotes
Those brackets do not apply to every property. Three other categories are taxed at a flat rate on the full sale price, with no $800,000 step at all:
| Property type | State rate |
|---|---|
| Nonresidential property (commercial, excluding unimproved land) | 1.25% flat |
| Unimproved land, including farm, forest, and open space | 0.75% flat |
| Residential property that is not a dwelling, such as an apartment building | 0.75% flat |
The commercial line is where the gap opens. On a $1,000,000 commercial sale, the flat 1.25% produces $12,500. The residential brackets would have implied $8,500. That is a $4,000 difference on a single closing, and it grows with price.
Why the gap persists
Consumer-facing content is written for consumers, so it describes the residential schedule and stops. That is a reasonable editorial choice for a page about buying a house. It becomes a problem when a commercial seller finds the same page and applies the same math.
If you are selling anything other than a house or a condominium, check which line you are on before you estimate.
The municipal piece sits on top
Whatever the state schedule, every Connecticut town also charges a municipal conveyance tax of at least 0.25%. Sixteen towns charge 0.50%, and Stamford charges a stepped rate. That is covered separately in which Connecticut towns charge more than 0.25%.
Source: OLR Report 2020-R-0020, Real Estate Conveyance Tax, Table 1.
Sources
- Primary sourceReal Estate Conveyance TaxConnecticut General Assembly, Office of Legislative Research
Every figure in this guide is checked against these sources before it publishes. Where a figure has no source, the guide leaves it out rather than estimating.
General information about Connecticut real estate transactions, not legal advice. Every transaction is different.