Connecticut taxes vehicle purchases at 6.35% — the same as its general sales
tax — but jumps to a 7.75% luxury rate when the price is above 50,000
dollars. A dealer trade-in reduces the taxable amount. This tool applies the
right tier and shows what you’ll owe at the DMV.
How it works
The taxable amount is the price minus a qualifying trade-in, and the rate depends on the purchase price tier:
taxable = max(0, purchase price − trade-in allowance)
rate = 6.35% if purchase price ≤ 50,000
= 7.75% if purchase price > 50,000 (applied to full taxable amount)
sales tax = taxable × rate
The 50,000 threshold is based on the purchase price, and once it is
exceeded the higher rate applies to the entire taxable amount, not just the
excess.
Example and notes
A 35,000 dollar car with a 10,000 dollar trade-in: the taxable base is
35,000 − 10,000 = 25,000, taxed at 6.35%, so the tax is 25,000 × 0.0635 = 1,587.50 dollars. A 60,000 dollar car (above the threshold) is taxed at
7.75% on its net price. This figure is tax only — add the registration fee,
title fee, plate fees, and annual local property tax for the full DMV cost.
Confirm current rates with the Connecticut Department of Revenue Services.