Connecticut Mill Rates - Property Taxes

Understanding how real estate property tax are calculated in Connecticut

Connecticut real estate is not taxed at the same rate across the state, and even neighboring towns might have wildly different mill rates. Mill rates are the amount that you are expected to pay annually for every $1,000 of your home's assessed value. If you remember back to grade school math the term "mill", like milli- represents 1 thousandth of something, hence the name mill rate.

Example Tax Calculation:

A  home appraised at $500,000 has an assessed value of $350,000 or 70% of the appraised value. The assessed value is then multiplied by the mill rate 25 (for our example) to give us an annual tax of $8,750, roughly $730 per month.

How Are CT Mill Rates Calculated? 

The property taxes that are collected are the primary source of funding for the towns and cities across the state, and the value of the real estate in those towns greatly impacts the local mill rate. Take for example the neighboring towns of Westport and Fairfield. Fairfield's Mill rate currently sits at ~26.5, while Westport's Mill Rate is ~17. What makes Fairfield's mill rate nearly 60% higher than Westport's is that the ratio of the town budget to total property value is lower in Westport than it is in Fairfield. 

While homes are typically reassessed every 5 years, and are compiled into what is called the Grand List, or what you can think of as the total value of all property in the town to be taxed, the tax rates can fluctuate year to year. Over the past few years, we have seen prices in much of the state decline and with the last reassessment reflecting lower prices, towns are left with two options, cut costs, or raise the property tax rate, with most choosing to gradually raise the mill rate.

In addition to real estate, vehicles are also taxed annually at the same mill rate, unless otherwise specified by the town. 

Some localities also have an additional tax for the local fire department or different mill rates for cars. The tax rate on your vehicle will be the same as your home unless otherwise specified under the Motor Vehicle Mill Rate column in the table below.

Implications of varying mill rates

Going back to our example of Fairfield and Westport let's take a look at what the difference in tax rates means for home buyer's in each of these towns. For simplicity's sake we are going to look at the purchase of a $1,000,000 home with 20% down payment. Mortgage payments will be the same for the same size loan.

Fairfield - $18,500 per year in taxes -> $1,540 tax per month 

Westport - $11,800 per year in taxes -> $985 per month

So with the same amount paid per month on mortgage, a home owner in Westport would pay nearly $600 less per month for their home than one in a comparably priced home in Fairfield. 

While average cost per square foot of homes is higher in Westport and tend to come with more acreage, and the reasons people choose to live in each town are quite different, it is quite astonishing the difference that taxes make. And if you are wondering how much of a home you can afford for the same amount that you'd spend in Fairfield, it ends up being a little over 10% more, or in the case of the million dollar home in Fairfield, you could get one for $1.1million in Westport.

These are real numbers, and make a real difference in the affordability of homes, so you really can't go out and make the blanket statement "I can afford a mortgage on a $XXX,XXX home" because whatever that number is, different mill rates might push you over your budget once taxes are taken into consideration.

Hopefully that helps your understanding of mill rates in Connecticut, however, if you're only here for the numbers, here are the Connecticut Mill Rates for 2019.

2019 Connecticut Mill Rates by Municipality

Mill Rates for 2019 Fiscal Year. portal.ct.gov. Retrieved 06-14-2019.

If you have additional questions about property taxes in Connecticut, real estate in general, the various Towns in Southern Connecticut, or if you are ready to start looking for your next home, please feel free to contact me via email, text, or phone [email protected] (203)858-4853. My agents and I are here and ready to help you with all of your real estate needs.