Connecticut Vehicle Sales Tax & Fees [+Calculator]
Michael Collado is a car buying expert and has been a professional automotive writer since 2009. He’s written about dealership sales, vehicle reviews and comparisons, and service and maintenance for over 100 national automotive dealerships. Previously, Collado was a copywriter at the ad agency TBWA/Chiat/Day where he worked on brand campaigns for Nissan, ABC Television, Sony PlayStation, and Energizer. His recognition in the ad industry includes awards from Communication Arts and The Clios.
Collado has a Bachelor’s degree from the University of South Florida, with a major in Psychology and a minor in Marketing.
Ready to purchase a vehicle in the state of Connecticut?
Then you have to be prepared to pay the associated state sales tax that is required with the purchase of any vehicle. For that reason, many people wonder how they can avoid paying car sales tax and if buying a car out of state is an option.
Here’s a look at how much you are expected to pay along with other associated vehicle fees in Connecticut.
Table of Contents
- How Much Is the Car Sales Tax in Connecticut?
- How to Calculate Connecticut Sales Tax on a Car
- Connecticut Sales Tax Calculator
- Do I Have to Pay Sales Tax on a Used Car?
- Which County Has the Highest Tax? Which Has the Lowest Tax?
- Car Sales Tax for Trade-Ins in Connecticut
- Car Sales Tax on Private Sales in Connecticut
- Tax on Rebates & Dealer Incentives
- Connecticut DMV & State Fees
- When Sales Tax Is Exempt in Connecticut
- Connecticut EV Rebates & Incentives
- Best Car Deals by Category
- Frequently Asked Questions
How Much Is the Car Sales Tax in Connecticut?
The current sales tax in Connecticut is 6.35% for vehicles that are $50,000 or less.
This means that if you purchase a new vehicle in Connecticut, then you will have to pay an additional 6.35% of the final purchase price of the vehicle.
If the vehicle is priced at more than $50,000, then the state sales tax is 7.75%.
How to Calculate Connecticut Sales Tax on a Car
To calculate the sales tax on your vehicle, find the total sales tax fee for the city. The minimum is 6.35%. Multiply the vehicle price (after trade-ins but before incentives) by the sales tax fee.
For example, imagine you are purchasing a vehicle for $35,000 with the state sales tax of 6.35%. The trade-in value of your vehicle is $5,000 and you have a $1,000 incentive. The total taxable amount is $30,000 since trade-ins are not taxable, but incentives/rebates are.
In this example, multiply $30,000 by 0.0635 to get $1,905, which makes the total purchase price, $30,905 (account for the incentive).
But let's say the vehicle sales price was $65,000. In this example, you would still subtract the trade-in value (which still makes the price over $50,000), but you would multiply by .0775 instead of .0635.
Calculate Car Sales Tax in Connecticut Example:
- Initial Car Price 1: $30,000
- Initial Car Price 2: $65,000
- Sales Tax Rate (Under $50,000): 6.35%
- Sales Tax Rate (Over $50,000): 7.75%
- Trade-In Amount: $5,000
- Incentive/Rebate Amount: $1,000
Sales Tax for Car 1 = ($30,000 - $5,000) * .0635
Sales Tax for Car 1 = $1,587.50
Sales Tax for Car 2 = ($65,000 - $5,000) * .0775
Sales Tax for Car 2 = $4,650
Connecticut Sales Tax Calculator
Do I Have to Pay Sales Tax on a Used Car?
If you purchase a used car for under $50,000, then you will have to pay a state sales tax rate of 6.35%.
If the purchase price of the used car is over $50,000, then the state sales tax is 7.775%.
Which County Has the Highest Tax? Which Has the Lowest Tax?
All counties in Colorado have the same minimum sales tax of 6.35%.
Car Sales Tax for Trade-Ins in Connecticut
You do not have to pay a sale tax on the trade-in on your vehicle in the state of Connecticut.
In other words, when calculating sales tax, be sure to subtract the trade-in amount from the car price.
Let’s say that you're purchasing a new car for $45,000 and your trade-in is valued at $5,000. This would put your new vehicle purchase price at $40,000, which is the taxable amount.
An important note about Connecticut is there is a $100 fee when trading in your vehicle to a dealership.
Car Sales Tax on Private Sales in Connecticut
You will have to pay sales tax on private vehicle sales of a 1991 or newer passenger car or light duty truck in Connecticut.
On private vehicle sales of under $50,000, the state sales tax is 6.35%.
If you purchase a vehicle, in a private sale for more than $50,000, then the state sales tax is 7.75%.
Tax on Rebates & Dealer Incentives
The state of Connecticut does tax rebates and dealer incentives.
In other words, do not subtract the incentive amount from the car price before calculating the sales tax amount.
As an example, let’s say you want to purchase a new truck for $35,000 and the dealer provides a $2,500 rebate. You still have to pay a sales tax on the $2,500 rebate. Therefore, the taxable amount is $35,000.
Connecticut DMV & State Fees
Connecticut charges the following DMV and state fees:
- Registration Fee: $120.00
- Plate Fee: $7.00
- Greenhouse Gas Fee: $15.00
- Clean Air Act Fee: $15.00
- Administrative Fee: $10.00
- Trade-in Fee: $100.00
- Emissions Exempt Fee: $40.00
Connecticut Dealership Fees
Connecticut dealerships may charge the following fees:
- Doc. Fees: ~415 (No Statewide Limit)
When Sales Tax Is Exempt in Connecticut
You do not have to pay state sales tax if the vehicle is registered in the same name - in another state - at least 30 days before establishing Connecticut residency.
Also, there is no sales tax levied on cars that are received as gifts.
Farm vehicles, ambulances, training vehicles, and commercial vehicles are exempt from the state sales tax.
Connecticut EV Rebates & Incentives
In addition to the federal tax credit, Connecticut offers an energy credit of up to $9,500 for electric, plug-in hybrid, hydrogen, or fuel cell vehicles through the (CHEAPR) program.
Any vehicle that uses hybrid technology is exempt from paying the state sales tax.
Tax information and rates are subject to change, please be sure to verify with your local DMV.
Frequently Asked Questions
What is the sales tax on a car purchased in Connecticut?
The state sales tax on a vehicle purchase in the state of Connecticut is 6.35% on vehicles priced at under $50,000. Vehicles priced over $50,000 are taxed at 7.75%.
Do I have to pay sales tax on a used car in Connecticut?
Yes, the state sales tax on used cars is 6.35% for vehicles under $50,000 and 7.75% for vehicles over $50,000.
Do I have to pay sales tax on a gifted car in Connecticut?
You do not have to pay tax on a gifted vehicle in Connecticut.
How much is registration in Connecticut?
The annual registration fee on a passenger vehicle is $120 per year.
Does a trade-in reduce sales tax in Connecticut?
Yes. Trade-ins reduce the sales tax that you would pay on a vehicle. For instance, if you purchase a vehicle for $60,000 and your trade-in is valued at $15,000, then you are only taxed on the $45,000 purchase price.
How can I avoid paying sales tax in Connecticut?
You do not have to pay state sales tax if the vehicle is registered in the same name - in another state - at least 30 days before establishing Connecticut residency. Also, there is no sales tax levied on cars that are received as gifts.