Car Tax

Many have voiced frustration after receiving their vehicle tax bill on July 1, 2025.  Below is an explanation of the changes imposed by the Connecticut General Assembly regarding the valuation and taxation of vehicles.

Recent legislation, Public Act 24-1, changes the method by which motor vehicles are valued for the purpose of taxation.  This new valuation process took effect beginning with the October 1, 2024, assessment year.

Vehicle Valuation:

• In the past, vehicles were valued based upon their market value as determined by NADA (National Automobile Dealers Association) or J.D. Power pricing guides in effect as of 10/1 each year.
• Beginning with the October 1, 2024, assessment year, vehicles will now be valued by multiplying the vehicle’s MSRP (Manufactures Suggested Retail Price) by a fixed depreciation factor based on the vehicle’s age.
• The depreciation schedule starts at 90% for vehicles up to one year old and decreases by 5% each year, ending at 20% for vehicles fifteen years old and beyond. Additionally, for vehicles twenty years and older, a vehicle’s assessment (not value) may not be less than $500.
• The vehicle will be taxed on 70% of this new value known as the "assessed value."
• The vehicle’s assessment is multiplied by the town's motor vehicle mill rate (32.46 mills) to determine the vehicle’s taxes for the year. Assessed value x mill rate (.03246) = Tax due

Vehicle and property owners retain the right to appeal their vehicle assessment before the Assessment Board of Appeals.  Such appeals will be heard by the Board on September 9, 2025.  

For questions, contact the Assessor's office at (860) 870-3109 or assessor@ellington-ct.gov .