Connecticut Car Tax Guide (2026)
Connecticut imposes an annual property tax on motor vehicles registered within the state. Although commonly referred to as a “car tax,” this charge is legally a municipal personal property tax that varies by town. The amount owed depends on a standardized vehicle valuation method combined with each town’s locally set mill rate.
This guide explains how Connecticut vehicle taxes are calculated, why tax bills differ dramatically between towns, and how residents can estimate their own vehicle tax liability. For those who want a quick estimate, a separate calculator is available.
How Connecticut Vehicle Tax Is Calculated
Vehicle taxes in Connecticut are assessed annually based on ownership and registration status as of October 1. Municipal tax bills are typically issued the following summer. Unlike sales tax, vehicle property tax is recurring and continues for as long as the vehicle remains registered in the state.
Two main factors determine the tax owed:
- The assessed value of the vehicle
- The mill rate set by the town of registration
MSRP-Based Vehicle Valuation
In response to volatility in used-vehicle pricing, Connecticut shifted toward a valuation system that places greater emphasis on a vehicle’s original Manufacturer’s Suggested Retail Price (MSRP). This approach reduces sudden spikes in tax assessments caused by temporary market conditions.
- Vehicles follow standardized depreciation schedules
- Valuations are constrained relative to original MSRP
- Assessment is calculated at 70% of the determined value
What Is a Mill Rate?
A mill rate represents the amount of tax charged per $1,000 of assessed value. Because mill rates are set by individual municipalities, tax bills for identical vehicles can differ significantly depending on where the vehicle is registered.
- A mill rate of 30.00 equals $30 per $1,000 of assessed value
- A mill rate of 60.00 equals $60 per $1,000
Why Car Taxes Vary So Much by Town
Connecticut has one of the widest spreads of municipal mill rates in the country. Towns with smaller tax bases often rely more heavily on property taxes to fund local services, resulting in higher vehicle tax bills for residents.
- Town budget requirements
- Commercial vs. residential tax base
- State aid allocations
- Infrastructure and legacy costs
Connecticut Vehicle Tax Formula
While valuation rules can be complex, the underlying formula is straightforward:
(Assessed Vehicle Value × 70%) × (Mill Rate ÷ 1,000)
Estimate Your Vehicle Tax
To estimate your own Connecticut vehicle tax based on your town, vehicle year, make, and model, use the calculator linked below.