Guides / Property Taxes / Vermont

Property Taxes in Vermont

Effective Rate

Vermont has one of the highest property tax burdens in the country. Multiple 2025-2026 sources put the state's average effective property tax rate at roughly 1.7%-1.9% of assessed home value (SmartAsset's widely cited figure is 1.90%; the Tax Foundation puts owner-occupied effective rate at 1.51%; WalletHub/other rankings show 1.71%-1.74%). Whichever exact figure is used, Vermont's rate runs 1.5x to nearly 2x the ~0.99% U.S. national average effective rate, consistently ranking Vermont among the 3rd-8th highest-tax states in the nation. This is driven largely by Vermont's heavy reliance on property taxes (mainly a statewide "education property tax") to fund local school budgets, since the state has no local sales tax option and relatively low other local revenue sources. Rates also vary significantly by town/school district: Chittenden County (Burlington area) has the highest median tax bills in the state, nearly double the national average, while more rural counties in the Northeast Kingdom run lower.

Example: Using SmartAsset's 2025-2026 data, the typical Vermont homeowner pays about $5,026/year in property tax on the statewide median home value. A separately cited example: a median-valued Vermont home of $290,500 taxed at an effective rate of ~1.71% produces an annual bill of about $4,956. In Chittenden County specifically (Vermont's largest and highest-cost county, including Burlington), the median annual property tax bill is about $6,469 - the highest in the state.

Exemptions

Homestead Declaration (Homestead vs. Nonhomestead Tax Rate)
Amount: No flat dollar exemption; instead splits the tax rate
Vermont does not use a traditional dollar-value homestead exemption. Instead, every town sets two education property tax rates each year: a lower 'homestead' rate for owner-occupied primary residences and a separate 'nonhomestead' (statewide uniform) rate for second homes, rentals, and business property. Homeowners must file Form HS-122 (Homestead Declaration) annually by the April filing deadline to be taxed at the homestead rate rather than the higher nonhomestead rate.
Vermont Property Tax Credit (income-sensitivity / 'circuit breaker' relief)
Amount: Maximum combined credit of $8,000/year ($5,600 for education property tax + $2,400 for municipal property tax); household income cap of $115,400 (based on 2025 income, for credits claimed in 2026)
This is Vermont's main homeowner relief program, filed via Form HS-122 and Schedule HI-144 (Household Income). The credit amount scales inversely with household income - lower-income homeowners receive proportionally larger credits, with full-credit income thresholds around $21,800 (most counties) to $27,300 (Chittenden County) for a single filer, phasing out up to the $115,400 cap. It effectively caps property tax owed as a percentage of household income for qualifying homeowners.
Additional relief for seniors, disabled persons, veterans, and surviving spouses
Amount: Stackable on top of the standard Property Tax Credit; specific add-on amounts vary by program (e.g., disabled veteran exemptions administered at the municipal level)
Vermont offers supplemental property tax relief for homeowners who are age 65+, disabled, disabled veterans, or surviving spouses, which stacks with the standard income-sensitivity Property Tax Credit. Veteran exemption amounts are set at the municipal/town level (subject to state minimums) and vary by town, so homeowners should check with their town clerk or the VT Department of Taxes for exact current-year figures.

Reported "average effective rate" figures for Vermont vary meaningfully by source (1.42% to 1.92%) because different organizations use different methodologies (e.g., statewide median vs. mean, owner-occupied only vs. all residential, or which tax year's grand list/reappraisal data is used). For the most defensible current figure, cite SmartAsset (1.90%, effective rate) or the Tax Foundation (1.51%, owner-occupied) and note the range rather than presenting a single number as definitive. Also note Vermont's legislature passed a FY2026 property tax bill (H.491/Act 24) with rates rising roughly 1.1%-3.8% depending on the source and town, so homeowners should check their specific town's current-year homestead rate via the VT Department of Taxes "Ed-Rates" page rather than relying solely on statewide averages.

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
Down Payment Assistance in VermontTransfer Tax & Closing Costs in VermontBuyer-Agent Agreements in VermontSeller Disclosure Laws in VermontFind Agents in VermontHome Affordability Calculator