Connecticut homeowners face some of the highest property taxes in the United States. With an average effective property tax rate of 1.96%, which is double the national average of 0.99%, it's crucial to understand how Connecticut property taxes work and how they can impact your financial plans.
Understanding Connecticut Property Taxes
Unlike in other states, property taxes in Connecticut are administered solely by cities and towns. These local municipalities set the tax rates and collect the taxes, with minimal oversight from the state.
The process begins with assessors assigned by the municipality who determine the fair market value of each property. This valuation must occur at least once every five years, although it can be more frequent. After establishing the market value, the assessed value is calculated by applying the statewide assessment ratio of 70%. This means that homeowners only pay taxes on 70% of the property's market value.
Calculating Connecticut Property Taxes
Connecticut municipalities use mill rates to assess property taxes. A mill rate represents $1 in taxes per $1,000 of assessed value. To calculate your property tax, divide your assessed value by 1,000 and multiply the result by your mill rate.
For example, if your home has a market value of $500,000, resulting in an assessed value of $350,000, and the mill rate is 50, your annual property tax would be $17,500.
Property Tax Rates by County
Here are the average effective property tax rates for each of Connecticut's eight counties:
Fairfield County
With major cities like Fairfield, Bridgeport, Stamford, and Norwalk, Fairfield County has an average effective rate of 1.83%, lower than the state average but higher than the national average.
Hartford County
Homeowners in Hartford County face higher property tax rates, with an average effective rate of 2.4%. In the city of Hartford, the mill rate is 74.29 mills.
New Haven County
New Haven County has the highest effective property tax rate in Connecticut at 2.38%. Cities like New Haven and Waterbury have millage rates of 43.88 mills and 60.21 mills, respectively.
New London County
Located along the East Coast, New London County has an average effective property tax rate of 1.95%, slightly lower than the state average but still higher than the national average.
Litchfield County
The median annual property tax payment in Litchfield County is $5,335, with an effective property tax rate of 2.07%.
Middlesex County
With Middletown as one of its largest cities, Middlesex County has an average effective property tax rate of 2.01%.
Tolland County
Tolland County residents pay a median property tax bill of $5,818 annually. Tax rates vary by municipality, with rates like 35.61 mills in Andover and 34.93 mills in Stafford.
Windham County
Windham County offers lower property tax rates compared to the state median. Residents here pay a median annual property tax of $4,049.
Understanding the property tax rates in each county can help you make informed decisions regarding homeownership and financial planning.
Remember, consulting with a financial advisor can provide guidance on how property taxes fit into your overall financial goals. SmartAsset's free tool can match you with up to three vetted financial advisors in your area, helping you choose the right advisor to achieve your financial objectives.
Photo credit: ©iStock.com/enysarwar
Whether you're considering buying a home or already own one in Connecticut, being aware of the state's property tax system is crucial. By understanding how property taxes are calculated and the rates in different counties, you can plan your finances effectively and make informed decisions.
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