New Conveyance Tax Rate Effective July 1st 2020

Community Awareness

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.