Meta description: Connecticut sellers pay a state conveyance tax of 0.75% to 2.25% plus a town tax of 0.25% or more. Here's what that costs on a $925K to $9M shoreline home.
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How much is the Connecticut conveyance tax when you sell a home?
In Connecticut, the seller usually pays the conveyance tax at closing. The state portion is tiered: 0.75% on the first $800,000, 1.25% on the part from $800,000 to $2.5 million, and 2.25% on anything above $2.5 million. Most towns add 0.25%, and a few designated towns can charge up to 0.5%. On a $925,000 shoreline home, that's about $9,875. On a $3 million waterfront home, it's about $46,000.
By Jennifer Gurnell | November 4, 2026
Most sellers I meet along the shoreline have a good idea of what their home might sell for. Far fewer know what they'll actually walk away with.
One of the line items that surprises people most is the Connecticut conveyance tax. It isn't small, it comes out of your proceeds at closing, and on higher-priced homes it climbs faster than most people expect.
So let's walk through it in plain numbers.
How the conveyance tax works in Connecticut
The conveyance tax is Connecticut's version of a real estate transfer tax. It has two parts: a state portion and a municipal (town) portion.
By law, the seller pays it. Your closing attorney takes it out of your sale proceeds at closing, and it shows up as a line item on your settlement statement. Connecticut is an attorney-closing state, so your attorney handles the filing and payment when the deed is recorded. You don't write a separate check.
Buyers and sellers can agree to split it differently in the contract, but that's rare. Plan on it being yours.
The state portion
For residential property, the state uses marginal tiers, a lot like income tax brackets:
0.75% on the portion of the price up to $800,000
1.25% on the portion from $800,000 to $2.5 million
2.25% on the portion above $2.5 million
That top tier took effect July 1, 2020. People sometimes call it Connecticut's "mansion tax." It matters a lot for waterfront and luxury sellers in towns like Old Saybrook, Essex, Madison, Guilford, Old Lyme, Stonington, Darien, and Greenwich.
Because the tiers are marginal, the higher rate only applies to the dollars above each threshold. A $3 million sale doesn't pay 2.25% on the whole price. It pays 2.25% on the last $500,000.
The town portion
Every Connecticut town charges a base rate of 0.25% on the full sale price.
A short list of designated municipalities can add up to another 0.25%, for a total of 0.5%. On the shoreline, New Haven and Norwalk are among the towns eligible for the higher rate. A few others have their own rules or have chosen not to use it.
In most of the shoreline towns I work in every day, including Old Saybrook, Westbrook, Clinton, Madison, Guilford, Essex, Old Lyme, East Lyme, and Stonington, the town portion is 0.25%. If you're selling in one of the larger cities, ask your attorney to confirm the exact town rate before you run your numbers.
What the conveyance tax costs on a shoreline home
Here's what the total looks like at a few price points. These examples use the standard 0.25% town rate.
$925,000 home (close to the average shoreline sale I see)
State: $6,000 on the first $800,000 + $1,562.50 on the next $125,000 = $7,562.50
Town: $2,312.50
Total: about $9,875
$1.5 million home
State: $6,000 + $8,750 = $14,750
Town: $3,750
Total: about $18,500
$3 million waterfront home
State: $6,000 + $21,250 + $11,250 (the 2.25% tier on $500,000) = $38,500
Town: $7,500
Total: about $46,000
$5 million home
State: $6,000 + $21,250 + $56,250 = $83,500
Town: $12,500
Total: about $96,000
$9 million estate
State: $6,000 + $21,250 + $146,250 = $173,500
Town: $22,500
Total: about $196,000
Look at the jump between $3 million and $5 million. The price goes up by about two-thirds, but the conveyance tax roughly doubles. That's the 2.25% tier at work.
If you're pricing a home in the $2.5 million to $3 million range, this belongs in your thinking. Every dollar above $2.5 million carries a combined 2.5% in state and town conveyance tax in most shoreline towns.
Things sellers often miss
It's one of several costs, not the only one
The conveyance tax sits alongside your other selling costs: your attorney's fee, real estate commission, any mortgage payoff, prorated property taxes, and any credits you negotiate with the buyer. I covered credits in my post on what home sellers from Old Saybrook to Guilford should know about closing cost concessions.
When I sit down with a seller, I put all of these on one page. That's the number that matters: what you walk away with.
There's a tax credit for some high-end sellers
Connecticut created a state income tax credit for residents who paid conveyance tax at the 2.25% rate. According to the Connecticut Department of Revenue Services, the credit can return up to one-third of a portion of that extra tax.
A few important details from DRS:
You must be a Connecticut resident to claim it
It's claimed in three equal installments, starting in the third tax year after you paid the tax
Unused credit can carry forward for up to six years, but there's no refund of any unused amount
So if you're selling a waterfront home above $2.5 million and staying in Connecticut, maybe downsizing to a condo in Old Saybrook or a smaller place closer to the village in Essex, ask your accountant about this credit. If you're moving out of state, it likely won't help you.
Some transfers are exempt
Not every transfer triggers the tax. Connecticut law exempts certain transfers, including:
Transfers between spouses
Certain court-ordered transfers, such as in a divorce
Sales of a principal residence where the price is less than what the seller owes on mortgages and tax liens
These exemptions are narrow and have specific conditions. If you're handling an estate, a divorce, or a family transfer, your closing attorney is the right person to confirm whether one applies. Please don't assume.
Pricing near a threshold
I get asked whether it makes sense to price a home just under $800,000 or $2.5 million to save on the tax.
My answer: price drives buyer interest far more than the conveyance tax does. Because the tiers are marginal, a sale a little over a threshold only pays the higher rate on the dollars above it. The savings from squeezing under the line are usually small compared to what the right price brings in.
Pricing is a strategy decision. It should come from what's selling in your town, your section of the shoreline, and your home's water access or views, not from the tax table.
Why this matters for shoreline sellers right now
If you've owned your home for a long time, your sale price may be much higher than you'd guess. Shoreline values have moved a lot over the past several years, especially for waterfront and luxury homes. I wrote about that in why luxury homeowners in Old Saybrook, Essex, Madison, and Guilford are seeing strong demand.
A higher price is good news. It also means the conveyance tax is bigger than it would have been when you bought. Knowing the number ahead of time helps you plan your next move with confidence, whether that's downsizing, buying a second home, or relocating closer to family.
After more than 30 years of helping people sell along the Connecticut shoreline, here's what I've learned: the sellers who feel best at closing are the ones who saw their real net number before they ever listed.
Frequently Asked Questions
Who pays the conveyance tax in Connecticut, the buyer or the seller?
The seller pays it under Connecticut law. It's taken out of the seller's proceeds at closing and paid when the deed is recorded. The buyer and seller can agree otherwise in the contract, but that's uncommon.
What is the Connecticut "mansion tax"?
It's the nickname for the 2.25% state conveyance tax tier that took effect July 1, 2020. It applies only to the portion of a residential sale price above $2.5 million. The parts of the price below that are taxed at 0.75% and 1.25%.
How much is the conveyance tax on a $1 million home in Connecticut?
In a town with the standard 0.25% town rate, it's about $11,000. That's $6,000 on the first $800,000, plus $2,500 on the next $200,000, plus $2,500 for the town portion.
Is the town conveyance tax the same everywhere in Connecticut?
No. Every town charges at least 0.25%, and a short list of designated towns can charge up to 0.5%. Most shoreline towns between Branford and Stonington use the 0.25% rate. Your closing attorney can confirm the exact rate for your town.
Can I get any of the conveyance tax back?
Possibly, if you paid at the 2.25% rate and you're a Connecticut resident. The state offers an income tax credit that can return up to one-third of a portion of that extra tax, claimed in three installments starting in the third tax year after the sale. Talk with your accountant about whether you qualify.
Knowing your conveyance tax is one piece of a bigger picture: what you'll actually net from your sale. Curious what your home would sell for in today's shoreline market? I'd be happy to put together a personalized valuation for you. You can start here: Home Valuation.
About Jennifer Gurnell
Jennifer Gurnell is an award-winning REALTOR® with William Raveis Real Estate and has spent more than 30 years helping buyers and sellers along the Connecticut shoreline. With more than $100 million in career sales and over 250 homes sold, she specializes in waterfront and luxury properties and is known for her local knowledge, careful negotiation, and personal service.
This post is general information, not tax or legal advice. Conveyance tax rates and exemptions are set by Connecticut law and can change. Please confirm the figures for your sale with your closing attorney and tax advisor.
Sources used
CT Department of Revenue Services, Real Estate Conveyance Tax Change (state rate tiers, 2.25% effective July 1, 2020): https://portal.ct.gov/drs/legislative-summaries/2019-legislative-updates/real-estate-conveyance-tax-change
CT DRS, TSSB 2024(5), income tax credit for conveyance tax paid at 2.25% (revised 09/05/2024): https://portal.ct.gov/-/media/drs/publications/tssb/2024/tssb-2024-5.pdf
CT Office of Legislative Research, 2020-R-0020 (town rates, eligible towns, seller pays, exemptions): https://prdext3.cga.ct.gov/2020/rpt/pdf/2020-R-0020.pdf
Mancuso & Carey, Connecticut Conveyance Tax: What Sellers Pay (July 2026; paid at closing, rates current as of July 2026): https://mancusocarey.com/blog/connecticut-conveyance-tax-what-sellers-pay
Cummings & Lockwood, mansion tax example ($83,500 state tax on $5M, which matches the math above): https://cl-law.com/news-events/how-much-will-the-mansion-tax-in-connecticut-increase-fees-on-sales
Eastern CT Association of REALTORS®, Conveyance Tax Rates: https://easternctrealtors.com/selling/conveyance-tax-rates/
