It’s becoming more difficult for Connecticut (CT) homeowners to maintain property tax payments as annual tax bills climb following a state-mandated revaluation. Across the state, homeowners are seeing significant increases in their annual tax bills, some by as much as 45 to 55%, according to CT Insider. Now, CT ranks as the state with the third-highest property tax rate in the country. As of this year, the average price of a CT home is above $400,000.
Hamden and others see sharp increases despite mill rate cuts
Some counties of CT were hit harder than others. In New Haven county, property tax bills surged by 55% following the revaluation. To ease the blow, the mayor decreased millage rates (one dollar of tax per $1,000 of a property’s assessed value) from 55.61 to 43.39%. This, however, may be a null effort – CT residents are foreseeing the potential increase of thousands to their annual tax bills and weighing whether or not to move away.
“If anyone is looking to leave our town after a state-mandated revaluation, it’s likely they’re looking at a different state entirely” said a Willington, NJ spokesperson.
Housing shortage and pandemic-era demand
While the revaluation is driving much of the tax shock, the underlying issue is a housing market that remains under immense pressure. The pandemic-era housing boom sent home prices soaring across the country, and CT was no exception. In 2021, a $400,000 home with a 20 percent down payment and a 3.5 percent interest rate would result in a monthly mortgage of $1,440. Fast forward to 2025, and that same home now carries a monthly payment closer to $2,020, driven by both rising prices and higher interest rates.
Selling isn’t always an option
Despite the tax hikes, many CT homeowners aren’t going anywhere, and those who are often aren’t doing so because of the new assessments. Most are relocating for personal reasons, and even then, finding affordable alternatives is a challenge.
“If people sell their homes because of their taxes, I don’t know where they’re going to go because the rents are probably more expensive than what they’re paying in some cases” said Joanne Donne, co-owner of The Washington Agency in Harwinton, CT.
For now, some families are facing increases of up to $1,000 a month on bills. Many are unsure how much more those costs could climb in the coming years.
With summer underway, real estate agents hope that increased market activity will create more housing options for those looking to relocate. Until then, homeowners across CT are stuck in a waiting game – hoping the next revaluation won’t hit even harder.
