New Connecticut residents aren’t required to pay sales tax if the vehicle was registered in the same name in another state for at least 30 days prior to establishing Connecticut residency.

When filling out the registration form:
If tax exemption is claimed on the Application for Registration and Title (form H-13B) please complete section #6. The proper code is #4. Write in order:

• The state in which you were residing when you purchased the vehicle

• The date the vehicle was purchased

• The date the vehicle was registered in that state

• The date the vehicle first moved to Connecticut

Passenger vehicles and light duty trucks purchased from private owners (not a dealership) are subject to sales tax of 6.35% (or 7.75% for vehicles over $50,000).

Connecticut Sales and Use Tax is based on the NADA average trade-in value or bill of sale value (whichever is higher). The purchase price must be written on the Application for Registration and Title (form H-13B).

You can receive credit for sales tax paid out of state by providing supporting documentation (purchase invoice and tax receipt) showing your submitted sales tax to the appropriate state agency. If you paid less than 6.35% (or 7.75% for vehicles over $50,000) sales tax in another state you will need to pay the additional tax to DMV when the vehicle is registered.

If you didn’t get credit because of insufficient documentation, you will need to pay the tax (6.35% or 7.75% for vehicles over $50,000) at the time of registration.

You may request a refund from Department of Revenue Services (DRS) by completing a Claim for Refund of Motor Vehicle Tax (form CERT-106) or filing online by using “myconneCT” at portal.ct.gov/DRS-myconneCT.

If your vehicle was purchased from a licensed dealership, the 6.35% (or 7.75% for vehicles over $50,000) sales and use tax is based on the purchase price. We allow full trade-in credit when computing the Connecticut Sales and Use tax if the vehicle was purchased from a licensed dealership.

No tax is due on a vehicle received through the transfer or sale by a member of the immediate family. Immediate family is defined as mother, father, sister, brother, son, daughter, husband, wife, or civil union partner. Delinquent tax restrictions apply.

To qualify for sales tax exemption, the relationship of seller (transferor) to purchaser (transferee) must be (a) spouse, including civil union partner, (b) parent/child (including through adoption), or (c) brother/sister (including through adoption).

To qualify for the immediate family member exemption, the transferred/sold vehicle must have been registered in the name of the immediate member for at least 60 days prior to the transfer/sale and must have been taxed on the last sale.

The following vehicle types may be exempt from sales and use tax. Please see below for details:

• Gifts 

• Farm vehicles 

• Ambulance vehicles 

• Driver training vehicles  

• Vehicles involved in interstate commerce  

• Commercial vehicles 

Gifts 

You don’t need to pay sales and use tax on a vehicle or vessel received as a gift.

A Motor Vehicle or Vessel Gift Declaration AU-463) is required, signed by the donor. The donor can’t receive any consideration (cash, property, service, assumption of debt, etc.) in return.

Please be aware that a donor who gives a motor vehicle or vessel may be subject to the Connecticut gift tax. Generally, the gift tax is imposed on the transfer of property by gift during each calendar year. The tax is measured by taxable gifts, as defined for federal gift tax purposes. For more information on tax exemption, please contact the Department of Revenue Services.

Any vehicle exempt from the sales tax can’t be transferred if you owe delinquent tax on the vehicle. If the registration is suspended, the vehicle can’t be transferred to an immediate family member.

Farm vehicles

This vehicle is exempt from the 6.35% Connecticut sales/use tax if it’s used directly in the agricultural production process. For tax exemption, you must present a valid Farmer's Tax Exemption Permit (Form R657 or mL657) from:

Department of Revenue Services 
State of Connecticut 
450 Columbus Blvd Ste 1 
Hartford, CT 06103-1837  

Note: The Farmer's Tax Exemption Permit (Form R657 or mL657) must be in the same name as the farm registration in order to qualify for the tax exemption.

Ambulance vehicles

The purchase of ambulance-type vehicles is tax exempt if the vehicles are used exclusively to transport medically incapacitated individuals who aren’t required to pay for transportation. Purchasers must supply a statement stating that they met the conditions of this exemption.

Driver training vehicles

Sometimes vehicle dealers provide free use of vehicles to high schools for driver training programs. If the vehicle is registered in the name of the high school or Board of Education, no tax is due. However, if the vehicle is registered in the dealer's name, a tax is due from the user based on the purchase price paid by the dealer to the manufacturer.

Vehicles involved in interstate commerce

No tax is due on the sale or lease of vehicles which are delivered outside Connecticut by seller to purchaser and are used within the borders of Connecticut. These vehicles can only carry payloads of passengers or freight. The vehicle must be used for interstate commerce exclusively over the life of the vehicle.

Commercial vehicles

Commercial trucks, truck tractors, tractors, semitrailers, and vehicles used in combination with commercial trucks, truck tractors, tractors, semitrailers, if it:

Has a gross vehicle weight rating in excess of 26,000 pounds.

OR 

Is being operated actively and exclusively for interstate commerce during the one-year period beginning with the date of purchase.  In this case, please provide a CERT-105 form at the time of registration.

Select the link below for detailed information on sales and use tax:

• Military personnel
• Auctions
• Bartered, swapped or financed vehicles
• Dissolution, partial liquidation or reorganization of a business
• Foreign country purchases

Military personnel

Members of the United States armed forces who are residents of Connecticut are subject to a 6.35% (7.75% for vehicles over $50,000) sales and use tax.

Members of the United States armed forces on full-time active duty in Connecticut who are residents of another state may purchase motor vehicles from a licensed Connecticut motor vehicle dealer at a reduced sales tax rate of 4.5%.

Purchases can also be made jointly with the military member’s spouse. To get the reduced tax rate the military member must complete the Department of Revenue Services (DRS) form CERT-135). You will also be required to submit other required documents to the Connecticut licensed dealer as mentioned on the CERT-135.

Military members who purchase a vehicle from an out-of-state dealer must submit the completed CERT-135 form and other required documents to the DMV at the time of registration.

Auctions 

In general, vehicles purchased at auctions are subject to sales tax.  However, if a vehicle or vessel is sold by a federal referee as a result of bankruptcy, the purchase is not subject to sales tax.

For information concerning the auction of vehicles owned by the State of Connecticut, please visit the Department of Administrative Services website by clicking on Public Vehicle Auctions.

Bartered, swapped or financed vehicles 

Bartered vehicles: 

The taxable price is based on the total considerations (cash, property, services, assumption of seller's debt, etc.) in the transaction. So, if a vehicle is purchased through other considerations besides money alone (such as through service provided to the transferor), the transferee is taxed on the book value of the vehicle.

Swapped vehicles:

When the book values of swapped vehicles are nearly equal, tax is due for both parties based on the average trade-in value. If there is a significant difference in book values, it’s assumed some other considerations (cash, service, assumption of debt, etc.) were involved. If parties can’t provide a reasonable explanation for the inequitable exchange, the tax for both is based on the higher book value.

Financed vehicles:

Motor vehicles, motorboats, or snowmobiles may be purchased on the condition that the purchaser "assumes" an existing loan on the vehicle. The tax due to the purchaser is based on the value given directly to the seller plus the value of the loan assumed by the purchaser regardless of the manner in which the purchaser plans to pay off the loan.
 
Dissolution, partial liquidation or reorganization of a business

The transfer of vehicles in connection with the organization, reorganization, dissolution, or partial liquidation of a business aren’t subject to tax if no gain or loss (recognized for federal income tax) results to the transferor.

The claim of this exemption at the time of registration (by transferee) requires the presentation of a written statement which claims that the four conditions specified on a Q-20 Form are met. The four conditions are:

• The vehicle/vessel is transferred or sold in connection with the organization, reorganization, or liquidation of an incorporated business. Give the date when you file with the Secretary of State.

• The last taxable sale, transfer or use of the vehicle/vessel was subjected to a Connecticut sales or use tax. Describe vehicle/vessel by make, year, model and identification number.

• The transferee is the incorporated or stockholder of the entity which is transferring the vehicle/vessel.

• Any gain or loss to the transferor isn’t recognized for Federal income tax purposes under the provisions of the Internal Revenue Code.

The transfer from business to individual (and vice versa) when the individual is the single proprietor of the business isn’t regarded as an ownership transfer.

For more information, contact the Department of Revenue Services:

Phone

• 860-297-5962
• 800-382-9463
• 860-297-4911 (TTY, TDD, and Text Telephone users only, let the 711 relay operator know the number you wish to call and the relay operator will dial it and then communicate using a TTY.)

Mail

Department of Revenue Services 
State of Connecticut 
450 Columbus Blvd Ste. 1 
Hartford, CT 06103-1837  

Online

https://portal.ct.gov/drs 

Foreign country purchases

If you’re a Connecticut resident and purchased a privately imported vehicle in a foreign country, you owe use tax once the vehicle is registered in Connecticut. This tax applies even though you may have used the vehicle in the foreign country before bringing it to Connecticut.

The tax is based not on sales price alone, but on the sales price plus foreign taxes, transportation charges, import duties, and any other costs which arise in bringing the vehicle to the United States.

Tax paid to foreign jurisdiction, unlike tax paid to another state, isn’t recognized for tax allowance purposes for Connecticut use tax.

Motor vehicles are subject to a local property tax under Connecticut state law. This applies whether or not the vehicle is registered. The local property tax is computed and issued by your local tax collector.

If you don’t register a motor vehicle but claim ownership, you must annually file a declaration form with your assessor(s) between October 1 and November 1.

Each town has its own ID number and contact information for property tax purposes.

A tax jurisdiction is your town of residence.

Motor vehicle assessments are based upon 70% of average retail value as determined by your local assessor. Any questions regarding the assessed value of a vehicle should be referred to your local assessor.

The uniform assessment date is October 1st in Connecticut. Motor vehicles registered on October 1st will be part of the October 1st Grand List. Vehicles registered between October 2nd and July 31st will be listed on a supplement to the October 1st Grand List.

For most Connecticut municipalities, the tax due date for the October 1st Grand List bill is July 1st. The due date for the supplemental list bill is January 1st. Some municipalities give the option of paying the bill in installments.

Please contact the local tax collector to find out what the practice is in the town in which you live.

If your name has been reported to the Department of Motor Vehicles as being delinquent in payment for a motor vehicle, you will be unable to register, or renew, any vehicle until payment (including any accrued interest) is made. DMV will no longer accepts paper tax releases, your tax collector will need to clear you online.

Assessment appeals should first be directed to your assessor and then to the local Board of Assessments Appeals (BAA). The BAA meets during the month of September. September is solely for appeals relating to motor vehicle assessments appearing on the preceding October 1st Grand List.

You need to appear before the BAA for the Board to consider your appeal. If you are unable to appear in person, you may give written authorization for someone to appear on your behalf as your agent. All documentation substantiating your appeal should be presented during the meeting.

Any questions regarding the appeal process should be directed to your local tax assessor.

The DMV's property tax section may be reached by mail at:

Department of Motor Vehicles
Compliance Unit
60 State Street
Wethersfield, CT 06161-1050