What is a real estate conveyance tax?
A real estate conveyance tax is a tax paid by the “Transferor” in a real estate transaction, typically this is a Seller. However, there are some clever Sellers that put the burden of paying the conveyance tax on the Buyer in the real estate purchase and sale contract. The conveyance tax is paid BOTH to the State of Connecticut as well as to the municipality in which the property is located. The real estate conveyance tax MUST be paid to the Town Clerk (note: not the tax collector) at the time that the Deed transferring title is recorded on the land records. You must also present a completed and signed OP-236 – Connecticut Real Estate Conveyance Tax Return. A fillable online version is available here.
How much is the real estate conveyance tax in Connecticut?
The amount of the conveyance tax is dependent on the value of the real estate property being conveyed. In Connecticut, the real estate conveyance tax is .0075 of every dollar to the State (thts 3/4 of 1%) and .0050 of every dollar to the local municipality (that’s 1/2 of 1%).
If a home sells for $200,000.00, the Seller will have to pay $1,500.00 to the State of Connecticut, and $1,000.00 to the Town.
Are there any exceptions to the Connecticut Real Estate Conveyance Tax?
There are 22 exceptions that are noted on the back of the instructions to the return. The most commonly used are conveyances between spouses, conveyance due to foreclosure, and conveyance for little or no consideration.