How 2026 Connecticut Property Tax Changes Affect Buyers
If you're a Connecticut homeowner or thinking about buying property in the state, you're probably wondering: "What's happening with property taxes in 2026, and how will it affect my wallet?" The short answer? Significant changes are coming that could impact your tax bill for the next five years.
Connecticut is undergoing its first comprehensive property revaluation since before the COVID-19 pandemic, and the results will take effect starting July 1, 2026. Combined with proposed tax relief measures, these changes will reshape how much Connecticut residents pay in property taxes through 2031.
What's Driving Connecticut's 2026 Property Tax Changes?
The Great Revaluation of 2025
The biggest driver of 2026 property tax changes is Connecticut's statewide revaluation process. According to the Connecticut Department of Revenue Services, 32 municipalities conducted general revaluations with an assessment date of October 1, 2025. These new assessed values will determine property tax bills from July 1, 2026, through June 30, 2031.
This five-year assessment cycle means the impact won't be temporary – whatever changes occur will stick around for half a decade. For many homeowners, this represents the first major reassessment of their property's taxable value since before the pandemic reshaped Connecticut's real estate market.
The Commercial-to-Residential Tax Shift
Here's where things get concerning for homeowners: Connecticut is experiencing a significant shift in tax burden from commercial properties to residential ones. As office vacancy rates climb due to remote work adoption and retail properties struggle, municipalities are increasingly relying on residential property owners to make up the difference in tax revenue.
House Republican Leader Vincent Candelora warned Hartford residents to "hold onto your hats when Hartford goes through reval," citing how this shift has already affected other Connecticut communities. In his own North Branford home, Candelora saw property taxes jump from $9,500 to $11,800 annually following revaluation – a 24% increase that reflects this broader trend.
How Will 2026 Changes Impact Current Homeowners?
Immediate Bill Increases for Many
Current homeowners should prepare for potentially significant increases in their annual property tax bills starting in July 2026. The extent of these increases will depend on several factors:
Property value appreciation: Homes that have gained substantial value since the last assessment will see larger tax increases
Local market conditions: Areas with strong real estate growth may face steeper increases
Municipal budget needs: Towns with growing expenses or declining commercial tax bases may impose higher rates
The National Association of Realtors reports that Connecticut home values have increased substantially over the past few years, meaning many properties will be assessed at much higher values than their previous assessments.
Regional Variations Across Connecticut
Different Connecticut regions will experience varying impacts. Fairfield County, with its proximity to New York City and strong real estate market, may see substantial assessment increases. Meanwhile, areas like Hartford and New Haven counties, where commercial property struggles have been more pronounced, may experience the steepest residential tax burden shifts.
What About Prospective Homebuyers?
Understanding Your Future Tax Liability
If you're planning to buy a Connecticut home, these 2026 changes will directly affect your long-term housing costs. Here's what buyers need to know:
Research Recent Assessments: Properties purchased after July 2026 will inherit the new assessment values. Work with your real estate agent to understand how the October 2025 revaluation affected specific properties you're considering.
Factor in Five-Year Impact: Unlike some states with annual reassessments, Connecticut's five-year cycle means you'll live with these tax rates through 2031. Budget accordingly for the full period.
Consider Appeal History: Properties with successful assessment appeals may indicate overvaluation issues you'll want to investigate before purchasing.
Timing Your Purchase
The timing of your Connecticut home purchase could significantly impact your property tax burden. Buying before July 2026 means you'll still pay taxes based on older, potentially lower assessments for a few more months. However, you'll need to plan for the July increase.
For those considering living in Connecticut, understanding these tax implications is crucial for accurate budgeting.
Potential Relief: Proposed Property Tax Credits
Historic Expansion Proposal
There's some good news on the horizon. House Republicans have proposed the largest expansion of Connecticut's property tax credit in state history. Here's what the proposal includes:
Maximum credit increase: From $300 to $1,000 annually
Minimum credit guarantee: $400 for all eligible filers
Expanded eligibility: Income thresholds would increase by approximately $20,000 for single filers and $30,000 for joint filers
Broader reach: Joint filers earning up to $200,000 could qualify for partial credits, compared to the current $130,500 threshold
More than 800,000 Connecticut residents would benefit from increased relief under this proposal, according to legislative estimates.
The Reality Check
While this proposed relief sounds promising, it hasn't been enacted yet. Governor Lamont's previous proposal for just a $50 credit increase was rejected during 2025 budget negotiations, highlighting the political challenges facing tax relief measures.
Even if passed, the maximum $1,000 credit may not fully offset the property tax increases many homeowners will experience. For someone like Candelora, whose taxes increased by $2,300 annually, even the maximum credit would only provide partial relief.
Key Dates and Deadlines to Remember
Assessment Appeal Deadlines
Property owners who disagree with their October 2025 assessments have limited time to appeal. Most municipalities set appeal deadlines in February, so if you're unhappy with your new assessment, act quickly.
The appeal process involves presenting your case to the local Board of Assessment Appeals, where you'll need to provide evidence that your property was overvalued compared to similar properties in your area.
Implementation Timeline
October 1, 2025: Assessment date for revaluations (completed)
February 2026: Typical deadline for assessment appeals
July 1, 2026: New tax bills take effect based on reassessed values
June 30, 2031: End of current assessment cycle
What Should You Do Now?
For Current Homeowners
Review your assessment: Check how your property's assessed value changed during the 2025 revaluation
Research appeal options: If your assessment seems high, gather comparable sales data
Budget for increases: Plan for higher property tax bills starting July 2026
Monitor tax credit proposals: Stay informed about potential relief measures
For Prospective Buyers
Factor in new taxes: Use 2026 assessment values when calculating housing costs
Research specific properties: Understand how revaluation affected homes you're considering
Consider timing: Weigh the pros and cons of buying before or after July 2026
Work with local experts: Partner with a knowledgeable Connecticut realtor who understands these changes
Frequently Asked Questions
Q: Will all Connecticut homeowners see property tax increases in 2026?
A: Not necessarily. While many will see increases due to revaluation, some properties in areas where values haven't grown as much may see smaller increases or even decreases. The overall trend, however, points toward higher residential property taxes.
Q: Can I appeal my 2025 assessment if I think it's too high?
A: Yes, but you need to act quickly. Most municipalities have appeal deadlines in February 2026. You'll need to present evidence to your local Board of Assessment Appeals showing your property was overvalued.
Q: How often does Connecticut reassess properties?
A: Connecticut follows a five-year revaluation cycle. The next comprehensive revaluation after 2025 would typically occur in 2030.
Q: Will the proposed property tax credit definitely become law?
A: No, it's still a proposal that requires legislative approval. While it has support from House Republicans, it needs to pass both chambers and be signed by the governor.
Q: Should I sell my home before the new taxes take effect?
A: This depends on your individual situation. While avoiding higher taxes might seem appealing, consider all factors including market conditions, your long-term plans, and transaction costs.
Planning for Connecticut's Property Tax Future
Connecticut's 2026 property tax changes represent a significant shift that will affect homeowners and buyers for years to come. While the revaluation process aims to ensure fair assessments based on current market values, the practical result for many will be substantially higher tax bills.
The key is understanding how these changes will specifically affect you and planning accordingly. Whether you're a current homeowner facing higher bills or a prospective buyer factoring in long-term costs, knowledge of these changes helps you make informed decisions about your Connecticut real estate future.
If you're navigating Connecticut's changing real estate landscape, having an experienced local realtor who understands these tax implications can make all the difference. Contact me to discuss how 2026 property tax changes might affect your specific situation and explore the best strategies for your real estate goals.
Sources
Connecticut House Republican Caucus. "House Republicans Propose Largest Property Tax Credit Expansion in State History." Press Release, 2025. https://www.cthousegop.com/post/property-tax-relief
Connecticut General Assembly. "Property Tax Credit Expansion Proposal." Legislative Documents, 2025. https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp
Connecticut Department of Revenue Services. "2025 Revaluation Information." State Government Website, 2025. https://portal.ct.gov/DRS
Hartford Courant. "Property Tax Burden Shifting to Residential Owners." News Report, 2025. https://www.courant.com
Connecticut Conference of Municipalities. "Municipal Revaluation Updates." Official Communications, 2025. https://www.ccm-ct.org
