How do car taxes work in Connecticut?

Am I supposed to pay a separate tax on my car every year? 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.

“Yes, you have paid the standard sales taxes when you purchased your car at the dealership. However, there are states that have a yearly personal property tax on vehicles. They are:
  • Connecticut
  • Mississippi
  • Virginia
  • Rhode Island
Unfortunately, you will need to pay a personal property tax on your vehicle every year. How much it costs will depend on where you live. Taxes can vary significantly by city.
Each municipality will calculate a mill rate for personal property tax each year and determine the car’s value.
For calculation purposes, a mill rate = 1/1000th of a dollar. This means you will pay $1 for every $1,000 worth of property.
Connecticut will charge each resident 70% of the car’s value multiplied by the mill rate for car tax.
For example, let’s say you own a 2018 Kia Optima, and it has a Blue Book value of $23,000. 70% of $23,00 is $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 Feb 1st every year. There is a late fee of 1.5% interest 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 registration revocation.
With taxes like this, no one in Connecticut wants to overpay for car insurance! If you are looking to save on your insurance policy, give Jerry a try.
Jerry is a free app that compares over 50 insurance providers to find you the lowest rates. You will have new quotes in seconds and can start the policy and receive a pdf of your ID card all in the same day.”
Shannon Martin
Answered on Nov 23, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.

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