What Every Seller Should Know About Connecticut Conveyance Tax
Most people are aware of the costs associated with selling a home and calculate their base price according to the fees. The most common charge and the one the majority of people are familiar with is the real estate agent’s commission. Homeowners expect this cost to take a portion of their profits. However, there is another fee that is often overlooked by sellers which is the state and local conveyance tax.
Clients frequently ask me, What is Connecticut Conveyance Tax? With only a few exceptions, everyone who sells real estate in the state of Connecticut must pay this tax. The tax is based on the sales price as opposed to the profit. The state tax is equal to .75 percent of the sale price. In addition to the state conveyance tax, sellers must also pay an additional municipal tax of .25 percent. Towns that are classified as targeted investment communities also charge sellers another .25 percent in conveyance tax.
Local Conveyance Tax: 0.25% (Ridgefield, varies from town to town)
In order to reduce the amount of these taxes or have them waived entirely, a property owner must qualify for an exemption. Transactions for properties transferred from one spouse to the other are exempt from tax. Sales in lieu of foreclosure are also not taxed. Another category of real estate transactions that are exempt from conveyance tax includes those where the sale is made to certain non-profit organizations. It’s important for a seller to fully understand these exemptions if they want to apply for one.
With Connecticut Conveyance Tax Explained, I hope you are able to understand how these fees will affect your profit. I’ll be happy to help you figure out the taxes and other fees related to the sale of your home and assist you with finding a price for your property that’s in line with the market and will also result in a profit for you. Just call me as soon as you decide you want to sell your property and we’ll start working on a marketing plan that will get your home in front of as many potential buyers as possible. We’ll do our best to negotiate a favorable sale for you that takes all your costs into account so you have enough money to purchase your next home. Contact Amy Mosley & Partners Real Estate today to schedule an appointment for us to view your property and plan your sales strategy.