Selling your Norwalk home and wondering how much you’ll owe in conveyance tax at closing? You’re not alone. This cost catches many sellers by surprise, and it can shift your net proceeds more than you expect. In this guide, you’ll learn what the conveyance tax is, who typically pays it, how it’s calculated for Norwalk sales, and simple ways to estimate your bottom line with clear examples. Let’s dive in.
What conveyance tax is
The conveyance tax is a transfer tax charged on real estate sales. It is calculated as a percentage of the sale price and is usually collected at closing. In Connecticut, there are two possible layers: a state conveyance tax and, if adopted by the municipality, a local conveyance tax.
The tax is generally based on the consideration shown on the deed, which is usually the contract sale price. Certain non‑cash items can affect this number, so confirm your details with your settlement agent or counsel.
Who pays in CT
By common practice in Connecticut, the seller usually pays the conveyance tax. This is often negotiated in the contract, but local custom typically places this responsibility on the seller. The settlement agent or closing attorney collects the amount at closing and handles the required filings.
How it works in Norwalk
For a Norwalk home sale, you may need to calculate two parts:
- State conveyance tax
- Municipal conveyance tax, if Norwalk has adopted one
Your total conveyance tax equals the state portion plus the municipal portion. Because municipal adoption and rates can change, you should verify whether Norwalk currently levies a municipal conveyance tax and, if so, the exact rate. The state rate can also change, so always confirm current figures before you finalize your proceeds estimate.
Estimate your tax
Use these simple formulas to model your costs:
- State_tax = State_rate × Sale_price
- Municipal_tax = Municipal_rate × Sale_price (or zero if no local tax)
- Total_conveyance_tax = State_tax + Municipal_tax
You can also plug the total into a basic net proceeds estimate:
Seller_net_proceeds = Sale_price − Mortgage_payoff − Broker_commission − Total_conveyance_tax − Closing_costs − Prorations − Attorney_or_transfer_fees
Example calculations
Below are hypothetical examples to show the math. These rates are for illustration only. Always confirm current state and Norwalk rates before modeling your sale.
Example A: No municipal tax assumed (hypothetical)
- Sale price: $600,000
- State rate: 0.75% (hypothetical)
- State tax: 0.0075 × $600,000 = $4,500
- Municipal tax: $0
- Total conveyance tax: $4,500
Example B: With municipal tax assumed (hypothetical)
- Sale price: $600,000
- State rate: 0.75% (hypothetical)
- Municipal rate: 0.5% (hypothetical)
- State tax: $4,500
- Municipal tax: 0.005 × $600,000 = $3,000
- Total conveyance tax: $7,500
Example C: Simple net worksheet (hypothetical)
- Sale price: $600,000
- Mortgage payoff: $200,000
- Commission: 6% = $36,000
- Total conveyance tax: $7,500 (from Example B)
- Other closing costs: $3,500
- Estimated seller net: $600,000 − $200,000 − $36,000 − $7,500 − $3,500 = $353,000
These examples are for education only. Your numbers will vary based on your actual contract, current tax rates, and closing expenses.
Closing process overview
At closing, the settlement agent or attorney typically:
- Prepares the conveyance tax return and any municipal forms
- Collects the tax from your sale proceeds
- Submits required documentation for deed recording
The tax is paid at closing. If it is not paid, recording of the deed can be delayed. Plan for this cost so your closing moves forward on time.
Closing documents checklist
Bring or have ready:
- Government‑issued ID for all signers
- Fully executed purchase and sale agreement
- Mortgage payoff statement(s) and account details
- HOA or common charge statements, if any
- Signed deed and any affidavits requested by the settlement agent
- Records supporting any exemption you plan to claim
Exemptions to know
Some transfers may qualify for exemptions under Connecticut law and Connecticut Department of Revenue Services guidance. Common categories include transfers between spouses related to divorce or legal separation, transfers to or from certain governmental entities, and some foreclosure‑related transfers. Certain family transfers can be treated differently. Rules are nuanced, and documentation is critical. Confirm any potential exemption with the Connecticut DRS or your closing attorney before you rely on it.
Verify rates now
Because rates and local adoption can change, verify the following before you finalize your proceeds plan:
- Connecticut DRS: Current statewide conveyance tax rate, required forms, and filing instructions
- City of Norwalk: Whether a municipal conveyance tax is currently in effect and the applicable rate, plus any local remittance or form requirements
- Local settlement professionals: A Norwalk‑area closing attorney or title company can confirm local practices and timelines
Quick seller checklist
- Confirm the current Connecticut state conveyance tax rate
- Confirm whether Norwalk currently levies a municipal conveyance tax and the exact rate
- Use the formulas to estimate your total tax and net proceeds
- Gather payoff statements, IDs, and any exemption documentation
- Coordinate with your settlement agent to ensure forms are complete and paid at closing
Plan your Norwalk sale
You deserve a clear, low‑stress sale with no surprises at the closing table. If you are thinking about selling in Norwalk or nearby Lower Fairfield County, I can help you prepare, stage, and market your home for the strongest result while keeping your numbers front and center. Schedule your free home consultation & valuation with Marlee Book to start a tailored plan that fits your goals.
FAQs
What is the CT conveyance tax for Norwalk home sales?
- It is a transfer tax on real estate sales, usually paid by the seller at closing, and can include a state portion plus a Norwalk municipal portion if the city has adopted one.
Who typically pays conveyance tax in Connecticut?
- Customarily the seller pays, collected from proceeds at closing, though payment can be negotiated in the contract.
How do I estimate my Norwalk conveyance tax?
- Multiply your sale price by the current state rate and, if applicable, by the current Norwalk municipal rate, then add the two amounts together.
Are any transfers exempt from CT conveyance tax?
- Some transfers may qualify, such as certain spousal, governmental, or foreclosure‑related transfers, but you must confirm eligibility and documentation with DRS or your attorney.
Will unpaid conveyance tax delay my Norwalk closing?
- Yes, unpaid tax commonly blocks deed recording, which can delay closing or transfer of ownership.
Where do I confirm current rates for Norwalk?
- Check the Connecticut DRS for the state rate and the City of Norwalk for any municipal rate, or ask a local title company or closing attorney to verify the latest figures.
