Car Sales Tax in Connecticut
Connecticut has a statewide sales tax of 6.35% on car purchases under $50,000 and 7.75% on cars over $50,000.
Written by Amber Reed
Reviewed by Jessica Barrett
Connecticut
has a statewide sales tax of 6.35% on all car sales under $50,000. If the purchase price of the car is over $50,000, it will be taxed at a rate of 7.75%. There are no local tax additions, so the amount you pay will not vary by city.There are a lot of numbers to keep track of when you’re shopping for a car and the one that typically gets the most attention is the sticker price. But don’t forget about additional fees like sales taxes, which vary widely depending on where you buy your car.
Connecticut’s basic car sales tax is higher than the national average of 4.99%.
Jerry
is here to fill you in on all the details you need to know about car sales tax in Connecticut.How much is the car sales tax rate in Connecticut?
Connecticut’s statewide sales tax is 6.35%. This applies to all car purchases, whether you’re
buying new
or used. There are no in-state variations on car sales taxes, so the rate will be the same no matter what city or county you’re in. If you are purchasing a luxury car, you can expect to pay a little more. The sale of vehicles over $50,000 is taxed at a higher rate of 7.75%. Connecticut also offers a car sales tax rate of 4.5% to active-duty members of the military who are stationed full-time in Connecticut.
How are car trade-ins taxed in Connecticut?
Frequently, the process of buying a new car involves
trading in an old one
. The good news about a trade-in is that the value of it is deducted from the sticker price of the new car, so it isn’t subject to sales tax. This saves you money!For example, if you are buying a new
Mazda CX5
for $26,000 and are trading in your old Honda Civic DX
for $5,000, you’ll only pay the 6.35% sales tax on $21,000 of the purchase price. This means you’ll save almost $300 in sales tax, and every little bit helps!It bears mentioning that dealer incentives and rebates are not exempt from sales tax, however. This means that you will pay taxes on the price of the car before any rebates or incentives are applied.
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversHow to calculate sales tax on a car in Connecticut
Car sales tax is pretty straightforward in Connecticut—6.35% on cars under $50,000 and 7.75% on cars over $50,000. If you want to keep up on any changes, make sure you check Connecticut’s Department of Revenue sales tax rates online or use a good tax calculator.
Key Takeaway State sales tax on a car is 6.35% in Connecticut. If the vehicle costs over $50,000, the tax rate increases to 7.75%.
Exemptions from Connecticut car sales tax
Most of the time, you will pay some amount of tax if you purchase a car in Connecticut. However, if you are a non-resident who doesn’t own a home in the state and isn’t going to register your vehicle in Connecticut, you can qualify for a sales tax exemption.
Use form
CERT-25
to apply, and check with the Connecticut Department of Revenue for more information on exemptions
. How to estimate Connecticut tax, title, and registration fees
Sales tax isn’t the only additional charge that comes with purchasing a new vehicle—you’ll also need to pay other fees like
title
, , and a dealer conveyance fee. Here’s an at-a-glance look at how all these extra fees break down for the purchase of a new car under $50,000:
Cost | Average cost |
|---|---|
Sales tax | 6.35% |
Registration fee | $120 |
Plate fee | $7 |
Greenhouse gas fee | $15 |
Clean air act fee | $15 |
Administration fee | $10 |
Dealer conveyance fee | $405 |
The dealer conveyance fee is paid at the dealership and covers costs related to titling and registering the car. It can range anywhere from $0 to $699 and it’s
negotiable by law
with the dealer. How to find affordable car insurance in Connecticut
Okay! You’ve picked out your car and figured out your fees. Only one thing left: make sure you have car insurance that at least satisfies Connecticut’s
minimum legal requirements
. The cost of car insurance in Connecticut is higher than the national average, so you need to make sure that you’re getting the best deal possible. That’s where Jerry
comes in handy!Using the Jerry app is fast, easy, and ensures that you get a great rate on your car insurance policy. Just download our
trusted insurance comparison app
, enter a little bit of info, and within minutes you’ll have competitive quotes selected from over 50 of the nation’s top insurers. Sign-up is completed through the app, so there’s no paperwork and no phone calls needed! “Jerryis an awesome tool to find rates personalized to your specific needs! I’m still sitting at the dealership and have already finalized my insurance so I can drive my new car off the lot.” —Charity R.
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FAQs
How much is sales tax on a used car in Connecticut?
The sales tax for a used car is the same as a new car at 6.35%. However, the average dealer conveyance fee is lower for a used car at about $131.
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