Costs of Selling Land in Connecticut
Here is what a land seller usually pays in this state, from transfer tax to capital gains. When you sell to us, we pay the closing costs and you pay no fees or commissions.
- Cash offer in 24 hours
- No fees or commissions
- We pay closing costs
- Close in as few as 7 days
Seller Costs in Connecticut at a Glance
| Cost | Typical amount | Who usually pays |
|---|---|---|
| State conveyance tax | 0.75% of the price for unimproved land | Seller (by statute) |
| Town conveyance tax | 0.25% of the price; up to 0.5% in some towns | Seller (by statute) |
| Farm, forest or open space conveyance tax | 10% down to 1% of the price if sold within 10 years of classification or purchase | Seller |
| Deed recording fee | Set by state law; ask the town clerk | Set by the contract |
| Title search and title insurance | Varies; get a quote | Set by the contract |
| Attorney fee | Varies by attorney; get a quote | Each side pays its own attorney |
| Prorated property taxes | Your share for the months you owned the land | Seller for their months; back taxes paid from the sale |
| Federal capital gains tax | 0%, 15% or 20% on long-term gain (held more than 1 year); regular income rates if held 1 year or less | Seller, on the tax return |
| State income tax on the gain | Regular income rates, 2% to 6.99% | Seller, on the tax return |
Example: Seller Costs on a $25,000 Land Sale
- Sale price
- $25,000
- State conveyance tax (0.75%)
- $-187.50
- Town conveyance tax (0.25%)
- $-62.50
- Net before attorney, title, recording, prorated taxes and income tax
- $24,750
$25,000 x 0.0075 = $187.50. $25,000 x 0.0025 = $62.50. $25,000 minus $250 = $24,750. In a town that adds the extra 0.25%, another $62.50 is due. Land sold within ten years of a farm, forest or open space classification can owe more. Attorney, title and recording costs vary, so they are not shown.
Selling Costs in Connecticut: What to Know
Connecticut charges a real estate conveyance tax when a deed is recorded, and the seller pays it. For unimproved land the state rate is 0.75% of the price and the town rate is 0.25%, so most land sales pay 1%. Some towns add up to 0.25% more. Sellers also pay their attorney, their share of property taxes, and tax on any gain.
This page lists each cost, who usually pays it, and where the number comes from. A worked example shows a $25,000 land sale. If you want to skip most of these costs, you can get a cash offer for your Connecticut land.
Connecticut conveyance tax on land
Under C.G.S. 12-494, the state conveyance tax is 0.75% of the price for unimproved land, including land classified as farm, forest or open space. Other nonresidential property pays 1.25%. Homes pay 0.75% up to $800,000, with higher rates on the part above that, as the Department of Revenue Services explains.
The town adds a tax of 0.25% of the price. A targeted investment community, or a town with designated manufacturing plants, may add up to another 0.25%. The tax applies when the price is $2,000 or more.
Extra tax on farm, forest or open space land sold early
If your land is classified as farm, forest or open space land for a lower property tax assessment, an extra conveyance tax can apply when you sell within ten years. Under C.G.S. 12-504a, the rate is 10% of the sale price in the first year and drops by one point each year, down to 1% in the tenth year. After ten years it no longer applies.
Ask the town assessor whether your parcel is classified and when the ten years started.
Who pays what by custom
Under C.G.S. 12-495, the person conveying the property pays the conveyance tax to the town clerk when the deed is recorded. That is the seller. Both the state and town parts are paid at the same time.
Recording fees for the deed, title search and title insurance are usually set by the contract. The seller pays to clear their own liens and any unpaid property taxes, because the buyer needs clear title.
Attorney closings in Connecticut
Connecticut sales are usually closed by attorneys. The seller's attorney prepares the deed and the conveyance tax return, and the buyer's attorney often runs the title search and closing. Attorney fees and title costs vary, so ask for a written quote before you sign.
Town clerks charge recording fees set by state law. Ask the town clerk for the current fee list.
Prorated property taxes
Property taxes are split at closing so each side pays for the part of the year they owned the land. Your settlement statement shows the credit or charge. Any back taxes are paid from the sale proceeds at closing.
Capital gains tax basics (federal and Connecticut)
You owe tax on the gain, not on the full price. The gain is the sale price minus your basis (what you paid plus improvements) and minus your selling costs. The IRS explains basis in Topic 703.
If you owned the land for more than one year, the federal gain is long-term and is taxed at 0%, 15% or 20%, based on your taxable income. For 2025, a single filer pays 0% on long-term gains when taxable income is $48,350 or less. Land held one year or less is taxed as regular income. See IRS Topic 409.
Connecticut taxes capital gains as regular income. Under C.G.S. 12-700, rates for tax years starting in 2024 run from 2% to 6.99%. For a single filer, the 2% rate applies to the first $10,000 of taxable income.
The closing agent usually reports the sale to the IRS on Form 1099-S. This page is general information, not legal or tax advice. Confirm the numbers with your closing agent or a tax professional.
How selling to a cash buyer changes the costs
A listing with an agent adds a commission on top of the costs above. When you sell to EasyLotBuyer, there are no fees or commissions, and we pay the closing costs. You get a cash offer within 24 hours and can close in as few as 7 days.
We also buy land with back taxes, liens, title issues or no road access, and land held by heirs or an estate. Back taxes are paid at closing from the sale, so you do not need cash up front. Your capital gains tax is still your own, so keep your closing statement for your tax return.
- No agent commission
- No closing costs for you: we pay them
- Back taxes paid at closing from the sale
- Cash offer within 24 hours
Sources
Rules and fees change; check with the county before you act on them.
Selling Cost Questions in Connecticut
What is the Connecticut conveyance tax on land?
For unimproved land, the state tax is 0.75% of the price and the town tax is 0.25%. Some towns add up to 0.25% more.
Who pays the conveyance tax in Connecticut?
The seller. State law says the person conveying the property pays it when the deed is recorded.
Is there an extra tax if my land is classified as farm or forest land?
Yes, if you sell within ten years. The extra tax starts at 10% of the price in the first year and drops to 1% in the tenth year.
What is the Connecticut capital gains tax rate?
Connecticut taxes gains as regular income, at 2% to 6.99%. This is not tax advice.
Do I need an attorney to sell land in Connecticut?
Connecticut closings are usually handled by attorneys. Ask for a fee quote before you sign.
Who pays closing costs when I sell land to EasyLotBuyer?
We pay the closing costs, with no fees or commissions. Back taxes are paid at closing from the sale.