Connecticut Vehicle Tax Overview

Connecticut charges a 6.35% sales tax on vehicle purchases, with an additional 5% luxury surcharge on vehicles priced at $50,000 or above. No local sales tax applies to vehicles, making rates uniform statewide.

Standard Sales Tax

Connecticut's vehicle sales tax applies to all vehicle purchases:

  • Rate: 6.35% of purchase price
  • Less trade-in value
  • No local sales tax

Luxury Vehicle Surcharge

Vehicles with a sales price of $50,000 or more pay an additional luxury surcharge:

  • Rate: 5% of amount above $50,000
  • Example: $60,000 vehicle pays 5% on $10,000 = $500 luxury tax
  • Example: $80,000 vehicle pays 5% on $30,000 = $1,500 luxury tax

Combined Tax Examples

Total tax on a $60,000 vehicle with no trade-in:

  • Sales tax: $60,000 × 6.35% = $3,810
  • Luxury tax: ($60,000 - $50,000) × 5% = $500
  • Total: $4,310

Trade-In Tax Exemption

Connecticut allows trade-in vehicle value to reduce the taxable purchase price. This exemption applies to both the standard sales tax and the luxury surcharge calculation, potentially saving thousands on high-value purchases.

Additional Connecticut Fees

Vehicle purchases include:

  • Title fee: $25
  • Registration: $60-80 first year
  • Plate fee: $20-50 annually
  • Sales tax: 6.35% minus trade-in
  • Luxury tax: 5% of amount above $50k

Conclusion

Connecticut's standard 6.35% rate is moderate, but the luxury surcharge on $50k+ vehicles significantly increases costs for high-end purchases. Trade-in exemptions apply to both taxes, helping reduce the overall burden.