Buying a car in Connecticut

Every figure below is sourced to Connecticut’s own revenue or motor vehicle publications and dated. Estimates only.

Connecticut at a glance

State sales tax
6.35%
Local tax is added on top in most states — treat this as a floor.
Trade-in credit
Reduces your tax
You are taxed on the price less your trade-in allowance.
Dealer doc fee
Uncapped
Connecticut sets no statutory ceiling on this fee.
Title and registration
$145.00
$25.00 title + $120.00 registration.

Connecticut taxes the car every year, not just at purchase

A recurring annual tax on the vehicle’s value applies here — assessed at 70% of value at a representative 3.246% rate. It never appears in a monthly payment and is easy to miss when comparing states.3.246% is the 32.46-mill statutory CAP on municipal motor vehicle mill rates, which is the defensible 'typical' figure because many municipalities sit at or near it and none may exceed it. IMPORTANT STRUCTURAL DIFFERENCE from Arizona and Colorado: the 70% ratio is NOT applied to MSRP or purchase price. Effective with the 2024-10-01 grand list, assessors first apply a statutory depreciation schedule to MSRP (85% up to year one, 80% year two, 75% year three, 70% year four, 65% year five, declining to 15% for years fifteen to nineteen), and only THEN multiply by the 70% assessment ratio. No vehicle may be assessed below $500. OPM's own example for a 2020 Honda Accord LX: MSRP $24,020 x 65% = $15,613; x 70% = $10,929.10; x 32.46 mills = $354.76. A municipality may by vote adopt a more generous schedule under PA 25-2.

Local tax in Connecticut

Connecticut has no local sales taxes — 6.35% is the full rate. A higher LUXURY rate of 7.75% applies to vehicles registered as passenger or combination where the total cost exceeds $50,000, and per CT DMV the $50,000 threshold is tested against the sale price BEFORE any trade-in reduction even though the trade-in still reduces the amount the rate applies to. Separately, Connecticut municipalities levy a recurring annual motor vehicle property tax.