Vermont has a statewide Property Transfer Tax (32 V.S.A. Chapter 231) with rates that changed under Act 181 (H.687), effective August 1, 2024, and still current for 2026. Structure: (1) Principal residence: 0.5% on the first $200,000 of value (exempt from the Clean Water Surcharge), then 1.25% general rate + 0.22% Clean Water Surcharge (1.47% combined) on value above $200,000. (2) Non-principal residences (second/vacation homes fit for year-round habitation): 3.40% flat, or 3.62% including the Clean Water Surcharge. (3) Qualified long-term rental property: 1.47% (1.25% + 0.22% surcharge), contingent on the buyer annually filing a landlord certificate. There is also a separate Land Gains Tax (a graduated tax, up to 40%, on gains from Vermont land held under 6 years) that can apply on top of the transfer tax in short-hold-period sales, with common exemptions for principal-residence parcels and certain acreage. No transfer tax is due on the first $110,000 (approx., check current homestead exemption threshold) in certain owner-occupied cases — exemption details should be confirmed on form PTT-172 for a specific transaction.
Buyer closing costs typically run about 2%-5% of purchase price (this includes the Property Transfer Tax, since Vermont buyers customarily pay it). Seller closing costs typically run higher, roughly 6%-10% of sale price once real estate agent commissions are factored in, plus attorney fees, title costs, and prorated property taxes.
Who typically pays: Notably different from many states: in Vermont the BUYER is the party statutorily liable for the Property Transfer Tax and customarily pays it as part of closing costs (this is negotiable by contract but buyer-pays is the default convention). Sellers typically cover real estate agent/broker commissions, their attorney fees, title-related costs, and their prorated share of property taxes. Closing/settlement itself is usually handled by an attorney in Vermont (it is an attorney-closing state, unlike title-company-closing states).
No county-level or city-level variation was found for the Property Transfer Tax itself — it is a uniform statewide rate set by the state legislature, collected via form PTT-172 at the time of closing (paid to town clerk/recorded with the deed, remitted to the state). Vermont municipalities do have a separate "Local Option Tax" (LOT) that towns can adopt, but that applies only to sales, meals, rooms, and alcohol taxes — not to real estate transfers — so it is NOT a transfer-tax variant. Do not confuse the Property Transfer Tax with the separate Land Gains Tax (short-hold speculative gains tax, up to 40%, on land held less than 6 years) which is a distinct tax that can stack on certain transactions. Figures reflect Act 181/H.687 rates effective 8/1/2024, corroborated by tax.vermont.gov (via search snippet), ListWithClever, Peet Law, iBuyer, and Houzeo; the state's official page could not be directly fetched (403 error) so exact current exemption dollar thresholds (e.g., any de minimis exemption) should be verified against the live PTT-172 instructions for a specific closing.
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.