Real Estate Conveyance Tax Changes
Real Estate Conveyance Tax Exemption for Homes with Crumbling Foundations
Effective July 1, 2019 (cite: Public Act 19-117, §336), sales of principal residences with foundations made from defective concrete containing pyrrhotite - as certified by a licensed engineer – are exempt from the real estate conveyance tax. This exemption is limited to the first sale after such certification, and is not available to any seller who received financial assistance from the Crumbling Foundations Assistance Fund.
Real Estate Conveyance Tax Rate
Beginning July 1, 2020 (cite: Public Acts 19-117, § 337), there is a new marginal real estate conveyance tax rate of 2.25% on consideration for residential real property exceeding $2,500,000. The marginal tax brackets for residential real property are as follows:
- Up to and including $800,000: 0.75%
- $800,000.01 to $2,500,000: 1.25%
- Over $2,500,000: 2.25%
More information, Real Estate Conveyance Tax:
- DRS Website: Real Estate Conveyance Tax Forms
- Informational Publication (IP) 2017(9): Real Estate Conveyance Tax Return Information
Did you know?
You can also file Form OP-236, Connecticut Real Estate Conveyance Tax Return, via the DRS e-REC application, which is free, secure, and easy to use. e-REC allows tax return submitters to: submit Form OP-236 and remit payment online; receive notification when the tax return in "accepted" by a Town Clerk; and keep track of Form OP-236 returns submitted and in process.
Visit the e-REC page (via the e-REC login under 'Submitters') for a list of participating municipalities and to file using e-REC.