Selling a home in Shelton comes with a line item many sellers overlook until closing: Connecticut’s real estate conveyance tax. If you are planning a move, you want a clear picture of how this tax works, what it costs, and how to handle it without surprises. In a few minutes, you will understand the current rates, who pays, filing steps, common exemptions, and practical examples based on Shelton sales. Let’s dive in.
Conveyance tax basics in Shelton
Connecticut’s conveyance tax has two parts: a state portion and a municipal portion collected when your deed is recorded. The law is outlined in Connecticut General Statutes Chapter 223, and the town clerk collects the tax at recording. You can confirm local procedures on the Shelton Town Clerk page.
- State and municipal framework: See the statute overview in Chapter 223 of the Connecticut General Statutes for how the tax is structured and collected. Read Chapter 223.
- Local collection: The Shelton Town Clerk confirms that both state and municipal conveyance taxes are due at recording and notes the municipal rate. Check the Shelton Town Clerk page.
Current rates for Shelton sellers
For most residential sales in Shelton, the combined rate is typically 1.00% of the sale price, which breaks down as:
- State: 0.75% on the portion of a residential sale up to $800,000, then 1.25% on any portion above $800,000. See the specific tiers in the statute. Review the statute.
- Municipal (Shelton): 0.25% of the total consideration. Some towns in Connecticut can add a municipal surtax, but Shelton is not on that list. See the OLR background on surtax towns.
Who pays and when
By statute, the person conveying the property is responsible for the tax, and it must be paid when the deed is recorded. In practice, you typically pay this at closing. The parties can agree in the purchase contract to allocate this cost differently. See Conn. Gen. Stat. §12-495.
Filing and forms at closing
The required return is Form OP-236, which is filed and paid at recording. Your attorney or closing agent usually prepares and submits it. Towns that participate in electronic filing use the state’s myCTREC system, which the Department of Revenue Services (DRS) administers. Instructions, exemption codes, and filing details are available on the DRS conveyance tax page. Get filing guidance from DRS.
Multi-deed or multi-town sales
If a transfer uses more than one deed or spans multiple towns, DRS rules require using the total consideration to compute tax and then allocating per the guidance. Your closing team will use DRS worksheets as needed. See DRS guidance.
Quick cost examples
Use these examples for planning only. Your attorney or title company will verify final figures at closing.
Example A: Residential sale at $400,000 in Shelton
State: 0.75% × $400,000 = $3,000
Municipal: 0.25% × $400,000 = $1,000
Total conveyance tax = $4,000Example B: Residential sale at $1,000,000 in Shelton
State: 0.75% × $800,000 = $6,000, plus 1.25% × $200,000 = $2,500, state total = $8,500
Municipal: 0.25% × $1,000,000 = $2,500
Total conveyance tax = $11,000
Exemptions and special cases
Some transfers are exempt. If you claim an exemption, you still file OP-236 and include the correct exemption code and any required documentation. Examples include certain spousal transfers, deeds to or from government entities, qualifying nonprofit transfers, transfers that change form of ownership without a beneficial change, and specific foreclosure or short-sale contexts. See DRS exemptions and instructions.
- Short sales, deed in lieu, foreclosure: Specific exemptions may apply and require proper coding and documentation. Review DRS Special Notice SN 2010(4).
- Classified land surcharge: If land is classified as farm, forest, open space, or maritime heritage, a separate statutory conveyance surcharge may apply if sold within certain timeframes. This is different from the standard conveyance tax. See Conn. Gen. Stat. §12-504a.
- Manufactured home parks: Recent rules affect certain home park transfers, including separate filing (OP-236HP). Check the DRS page for updates. View DRS updates.
Seller checklist
Use this quick list to stay ahead of the conveyance tax at closing.
- Ask your attorney or listing agent to estimate the tax early and include it in your net sheet. See statutory rates.
- Confirm your purchase contract’s cost allocation, since parties can negotiate who pays. See who pays by statute.
- Have your attorney or title agent prepare Form OP-236 and gather any exemption documentation. File and pay at recording, or use myCTREC if available. DRS filing information.
- If you are selling classified land or a home park, obtain specialized guidance. Review §12-504a.
- Ask how the conveyance tax affects your federal tax reporting. In general, a seller’s transfer taxes are treated as selling expenses that reduce the amount realized. Always confirm with a tax professional. See IRS Pub. 530.
Local tips for Shelton closings
- Contact the Shelton Town Clerk for recording fees, office hours, and any local requirements, including whether electronic submission is available. Shelton Town Clerk.
- Make sure your closing team uses the correct town code on OP-236 and follows the DRS instructions. DRS forms and instructions.
- Plan your cash flow so the conveyance tax is ready at recording. This helps avoid any delay in getting your deed on record.
Ready to sell in Shelton?
A well-planned closing means no surprises on conveyance tax. If you want a clear path from list to close, with local guidance on costs and timing, connect with The John Hackett Team. Our senior-led team combines deep Fairfield County experience with hands-on transaction support so you can move forward with confidence.
FAQs
What is Connecticut’s conveyance tax for a Shelton home sale?
- It is a transfer tax collected at recording that includes a state portion and a municipal portion. For most residential sales in Shelton, the typical combined rate is 1.00 percent, with higher state tiering above $800,000.
Who pays the conveyance tax in Shelton and when is it due?
- By statute, the seller pays unless the contract allocates otherwise, and payment is due when the deed is recorded, usually handled at closing by your attorney or title agent.
How does the $800,000 threshold affect my tax?
- For residential property, the state rate is 0.75 percent up to $800,000 and 1.25 percent on the portion above $800,000. The Shelton municipal rate remains 0.25 percent on the full price.
Does Shelton charge an additional municipal surtax?
- No. Shelton’s municipal rate is the base 0.25 percent. Some Connecticut towns can add a surtax, but Shelton is not among them.
What forms are required to file the conveyance tax?
- You file Form OP-236 at recording. Your attorney or title company typically prepares and submits it, and many towns use the myCTREC e-filing system.
Are there exemptions to the conveyance tax?
- Yes. Exemptions include certain spousal transfers, qualifying government or nonprofit transfers, form-of-ownership changes without beneficial change, and specific foreclosure or short-sale situations. You still file OP-236 with the proper exemption code and any required documents.
