# New Conveyance Tax Rate Effective July 1st 2020 Effective July 1, 2020, the conveyance tax rate in CT on the sale of a property above S2,500,000 will have a Three Tier Tax Rate. Under the current law, there is a Two Tier Tax Rate for sales above \$800,000. The current law is as follows:

Current Two Tier Conveyance Tax

• .75% of the sale price up to \$800,000
• 1.25% of the sale price above \$800,000

Current Law Example \$3,000,000 Sale Price

.75% x \$800,000,00 = \$6000
1.25% x \$2,200,000.00 = \$27,500
(tax applies to \$3M – \$800,000 = \$2,200,000)
Total Tax = \$33,500

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New Three Tier Conveyance Tax

• .75% of the sales price up to \$800,000.00
• 1.25% of the sales price between \$800,000.00 and \$2,500,000
• 2.25% of the sales price above \$2,500,000.00

New Law Example \$3,000,000 Sale Price

.75% x \$800,000 = \$6000
1.25% x \$l,700,000 = \$21,250
(\$2,500,000 – \$800,000  = \$1,700,000)

2.25% x \$500,000 = \$11,250,000
(\$3.000,0000 – \$2,500,000 = \$500,000,00)

Total Tax = \$38,500

After July 1, 2020, an owner on a sale price of \$3,000,000 would pay an additional \$5,000.00 in conveyance taxes. The New Conveyance Tax only affects sales prices above \$2,500,000.