Effective 7/1/2011
Municipal Tax State Tax Total Tax
Residential
$800,000 or less 0.25%** 0.75% 1.00%
Portion over $800,000 0.25%** 1.25% 1.50%
Non-Residential 0.25%** 1.25% 1.50%

There are certain exemptions to the conveyance tax.

Exemptions from the state and municipal conveyance tax include:

  • for foreclosure sales conducted pursuant to a foreclosure by sale conducted by a court committee.
  • for deeds in lieu of foreclosure
  • for most short sales.

Since DRS places the major burden of conveyance tax compliance on closing attorneys, sellers should speak to their closing attorney about the application of any possible exemptions to the seller’s specific situation.

** A local option for “targeted communities” allows the municipality to charge double the rate to 0.5%. The following Eastern Connecticut communities have adopted the increased tax:

  • Groton
  • New London
  • Norwich
  • Windham

Residential examples

$300,000 sale in Ledyard

Municipal Tax = $300,000 x 0.25% = $ 750.00
State Tax = $300,000 x 0.75% = $2,250.00
Total Tax = $3,000.00

$300,000 sale in Norwich (targeted community)

Municipal Tax = $300,000 x 0.5% = $1,500.00
State Tax = $300,000 x 0.75% = $2,250.00
Total Tax = $3,750.00

$1,000,000 sale in Ledyard

Municipal Tax = $1,000,000 x 0.25% = $2,500.00
State Tax = $800,000 x 0.75% = $6,000.00
State Tax = $200,000 x 1.25% = $2,500.00
Total Tax = $11,000.00

$1,000,000 sale in Norwich (targeted community)

Municipal Tax = $1,000,000 x 0.5% = $ 5,000.00
State Tax = $800,000 x 0.75% = $ 6,000.00
State Tax = $200,000 x 1.25% = $ 2,500.00
Total Tax = $13,500.00