If you’re selling your home in Connecticut, understanding transfer taxes is important. Real estate transfer taxes are fees imposed by the state, county, or city when property ownership changes hands. These taxes can significantly impact your bottom line, so knowing what to expect is essential for a smooth transaction. In Connecticut, transfer taxes are an important part of the home-selling process. Our short guide will explain how these taxes work in the state, including who pays them, the transfer taxes applicable, and other related fees. The Federal Trade Commission defines transfer taxes as state or local taxes due when the title of property passes from one owner to another. Essentially, when you transfer the title of your home—your legal right to own the property—to a new owner, the government imposes a tax on this transaction. The amount you owe in transfer taxes depends on the location of your property, following specific state, county, or city regulations. Similar to other forms of taxation, these taxes are designed to generate revenue for government services and infrastructure. The party responsible for paying a real estate transfer tax varies by state. In Connecticut, the seller is responsible, and this tax must be paid before the deed on the property can be recorded. There are exemptions, however, which will be discussed later in this article.What are transfer taxes?
Who pays for transfer taxes?
