Connecticut real estate conveyance tax is:
Question & Answer
Review the question and all answer choices
No conveyance tax
Connecticut absolutely does impose a conveyance tax; stating there is no conveyance tax is factually incorrect and would be a significant error in advising a seller about their closing costs in any Connecticut transaction.
State and municipal taxes based on sale price
Only federal tax
There is no federal real estate conveyance tax in the United States; federal taxation of real estate transactions occurs through capital gains taxes on the seller's profit, not through a conveyance or transfer tax, making this option entirely inaccurate.
Flat fee
Connecticut's conveyance tax is not a flat fee but rather a percentage-based tax tied to the sale price, meaning the tax increases as the property value increases; a flat fee structure would be regressive and inconsistent with how Connecticut's statute is written.
Why is this correct?
Connecticut imposes a state conveyance tax under Connecticut General Statutes § 12-494, which applies to virtually all real property transfers, and municipalities are separately authorized to levy their own municipal conveyance tax on top of the state tax. The combined effect means a seller in Connecticut pays both a state-level percentage and a municipal-level percentage of the sale price at closing, making answer B the only accurate description of Connecticut's conveyance tax structure. The rates vary based on property type and sale price thresholds, but the dual state-and-municipal framework is the defining characteristic of Connecticut's system.
Continue Learning
Explore this topic in different formats
More Transfer of Title Videos
Continue learning with related video lessons
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.