I live in Connecticut and this is my first car. I bought the car at the dealership and already paid the tax on it there. How do car taxes work in Connecticut\u2014do I have to pay an annual tax, too?<\/p>\n\n\n\n
Yes, you are required to pay annual property taxes in Connecticut. Car owners must pay a yearly motor vehicle tax in addition to the standard sales tax due when purchasing a car<\/a> at a dealership or from a private sale.<\/p>\n\n\n\n Connecticut isn\u2019t the only state that enforces a recurring vehicle tax on residents, although the number of states that do is dwindling.<\/p>\n\n\n\n How much you pay in yearly vehicle taxes in Connecticut will depend on where you live. Taxes can vary between cities and counties, so you\u2019ll need to contact your local country tax office to get the specifics that apply to you. Each municipality is responsible for calculating the \u201cmill rate\u201d at which vehicles are taxed.<\/p>\n\n\n\n A mill rate equals 1\/1000th of a dollar when calculating the vehicle tax. In other words, this means residents pay $1 in taxes for every $1,000 worth of property value.<\/p>\n\n\n\n Starting Oct. 1, 2024 the new MSRP valuation system will be implemented in Connecticut. This \u201csticker price\u201d is set and then reduced over time based on a table produced<\/a> by the state government.<\/p>\n\n\n\n Connecticut charges each resident 70% of the car\u2019s MSRP value multiplied by the mill rate.<\/p>\n\n\n\n For example, if you own a car with an MSRP of $35,714 (factoring in the car\u2019s age), you first have to do the 70% calculation or $25,000 (rounding up slightly for easy math). That amount will then be multiplied by the mil rate. Let\u2019s say the mil rate for a certain county is 20 mils. The math would then be: $25,000 x (20\/1000) = $500.<\/p>\n\n\n\n Thankfully, you won\u2019t have to do any of this math yourself. You will receive a tax bill from your county in the mail with an amount and a due date.<\/p>\n\n\n\n Be mindful that Connecticut charges a 1.5% interest in late fees for every month the bill isn\u2019t 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.<\/p>\n\n\n\n Keep in mind that this tax is separate from the sales tax you paid when purchasing the car. In Connecticut, the sales take is 6.35% for vehicles under $50,000 or 7.75% for ones over $50,000. So in our hypothetical $35,714 car purchase price, the sales tax would be $2,267.84 at the time of purchase.<\/p>\n\n\n\n\n