Home Selling in 06516>Question Details

Shoehoard, Home Seller in 06516

Sales tax on selling a home?

Asked by Shoehoard, 06516 Sat Apr 6, 2013

I know about the state and municipal conveyance tax I must pay when I sell my house. Do I also pay a state sales tax to sell my home? Home is in Connecticut.

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In Connecticut, sellers of homes and land have to pay a conveyance tax of .75% (three quarters of a percent) to the state treasury, for properties sold for up to $800,000. For more expensive properties, the tax goes up to 1.25% for that amount over the $800,000. This tax is payable at the time of sale.

In addition to the state, your local municipality wants it share too. The minimum conveyance tax in a town is .25%, with 17 towns charging .5%. You need to check the rate in your town.

Whether you call it a sales tax or a conveyance tax, it's going to cost you at least 1% of the sales price for taxes.
0 votes Thank Flag Link Sun Apr 7, 2013
Transfer Tax is probably what you are referring to. In my area it is $4 per $1,000
0 votes Thank Flag Link Sat Apr 6, 2013
There is not a sales tax per se. The conveyance taxes ae there as you know. The only other thing you must be aware of is the possibility of a capital gains tax, which is dependent upon whether or not the home you are selling is your primary residence, how long you have lived there and whether or not your profit exceeds the capital gains limits. Best to talk with your accountant or attorney in terms of eligibility on this one.
0 votes Thank Flag Link Sat Apr 6, 2013
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