New Conveyance Tax Rate Effective July 1, 2020

 

Effective July 1, 2020, sellers of Connecticut homes will be required to pay a real estate conveyance tax of 2.25% with respect to the portion of the sales price in excess of $2.5 million (“mansion tax”).

An example of the tax change using a $3,000,000 home:

Existing Tax Conveyance for sales over $800,000:

- .75% of the sale price up to $800,000                         

-1.25% of the sale price above $800,000

Example: $3,000,000 sale price:

- .75% x $800,000 =                                       $  6,000

- 1.25% x $2,200,000 =                                  $27,500

($3,000,000 - $800,000 = $2,200,000)

TOTAL TAX:                                                      $33,500

New Conveyance Tax for sales above $2,500,000

- .75% of the sale price up to $800,000 

-1.25% of the sale price between $800,000 and $2,500,000

-2.25% of the sale price above $2,500,000

Example: $3,000,000 sale price:

- .75% x $800,000 =                                       $  6,000

- 1.25% x $1,700,000 =                                  $27,500

($2,500,000 - $800,000 = $1,700,000)

-2.25% x $500,000 =                                      $11,250

($3,000,000 - $2,500,000 = $500,000)

TOTAL TAX:                                                      $38,500

 

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