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How do car taxes work in Connecticut?
I live in Connecticut and this is my first car. I bought the car at the dealership and paid the tax on it there already. How do car taxes work in Connecticut—do I have to pay an annual tax, too?
Shannon Martin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Yes. In
Connecticut
, car owners are required to pay an annual motor vehicle tax, in addition to the standard sales taxes that apply when purchasing a car at a dealership. Connecticut isn’t the only state to enforce a recurring vehicle tax on residents. In fact, several states have a yearly personal property tax on vehicles, including:
Exactly how much you pay in yearly vehicle taxes in Connecticut will depend on where you live. Taxes can vary significantly between cities and counties. Each municipality is responsible for calculating the “mill rate” at which vehicles are taxed.
For the purposes of calculating vehicle tax, a mill rate is equal to 1/1000th of a dollar. In other words, this means residents pay $1 in taxes for every $1,000 worth of property.
Connecticut charges each resident 70% of the car’s value (as determined by the municipality) multiplied by the mill rate.
For example, if you own a 2018 Kia Optima with a
Blue Book value
of $23,000, you’ll be taxed on 70% of that value, or $18,200. Thankfully, you won’t have to do any of this math yourself. You will receive a tax bill from your county in the mail with a due date of Aug 1st or February 1st every year.
Be mindful that Connecticut charges a 1.5% interest in late fees for every month the bill isn’t paid. All tax information is reported to the DMV, so not paying the tax can result in a high fee,
license suspension
, and even registration revocation.MORE: Selling a car in Connecticut
View full answer
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