Vermont property tax is an important cost to consider when buying a home, owning rental property, or budgeting for real estate. Your annual bill depends on your property’s assessed value, your town’s municipal tax rate, the education property tax rate, and whether you qualify for property tax relief.
For the 2026–2027 property tax year (FY2027), Vermont uses separate education tax rates for homestead and nonhomestead properties. The statewide nonhomestead education tax rate is $1.643 per $100 of property value before local appraisal adjustments. Homestead education rates vary according to school district spending and local adjustments.
This guide explains how Vermont property taxes work, how to estimate your bill, which factors affect your tax rate, and where to find current rates and potential tax credits.
Vermont Property Tax Rates for 2026–2027
Vermont does not have one universal property tax rate that determines every homeowner’s total bill. Property taxes generally include a municipal component and a state education component.
| Tax component | How it works |
|---|---|
| Municipal property tax | Set locally to fund services such as roads, public safety and other town expenses |
| Homestead education tax | Applies to an eligible primary residence declared as a homestead |
| Nonhomestead education tax | Generally applies to second homes, rental properties, commercial properties and other property not declared as a homestead |
| Property tax credit | May reduce eligible homeowners’ tax burden if they satisfy state requirements |
The Vermont Department of Taxes publishes town-by-town education tax rates for FY2027. Its published rate table, summarized as of July 29, 2026, includes each town’s Common Level of Appraisal (CLA), Statewide Adjustment (SA), homestead rate, nonhomestead rate and school-budget status. <Cite refs={[“turn926942search3″,”turn926942search1”]}/>
Current statewide nonhomestead education rate: $1.643 per $100 of property value before the local appraisal adjustment. This is not the final rate for every town and does not include municipal taxes.
To find the applicable rate for your property, consult the official Vermont FY2027 education property tax rates and your town’s current tax bill.
How Much Is Property Tax in Vermont?
The amount you pay depends on your property’s taxable value and the applicable tax rates. A more valuable property generally produces a larger tax bill when the same rate applies, although exemptions, credits, and the property’s classification can change the amount owed.
For example, consider a property assessed at $300,000.
If the applicable education tax rate were $1.643 per $100 of value, the calculation would be:
$300,000 ÷ $100 × $1.643 = $4,929
This is an illustrative calculation using the statewide nonhomestead base education rate. It is not a complete estimate of a particular property’s bill because the final town-adjusted rate and municipal property taxes have not been included.
A homeowner’s actual bill could be higher or lower depending on the applicable homestead rate, local adjustments, municipal charges, and any eligible credits.
How to Calculate Vermont Property Tax
You can estimate your Vermont property tax by identifying the taxable value of your property and applying the correct municipal and education rates.
Step 1: Find your property’s assessed value
Check your property tax bill or contact your town’s assessing officials. The value used for taxation may differ from the price you originally paid for the property or its current estimated market value.
Step 2: Identify your property classification
Determine whether your property qualifies as a homestead. Vermont generally treats a qualifying principal residence as a homestead when the owner meets the applicable residency and occupancy requirements and files the required declaration.
Second homes, rental properties and commercial properties generally fall under the nonhomestead classification for education taxes. Properties with mixed residential and rental or business use may be divided between classifications.
Step 3: Find the applicable municipal tax rate
Your town sets its municipal rate based on the amount needed to fund local services and its taxable grand list. Municipal rates can differ significantly between towns.
Step 4: Find your final education tax rate
Use the current town-specific education rate, not just the statewide base rate. Vermont adjusts education tax rates using the town’s Common Level of Appraisal and the Statewide Adjustment.
Step 5: Calculate the tax before credits
For a rate quoted per $100 of value, use:
Property tax = Taxable property value ÷ 100 × applicable tax rate
Calculate municipal and education taxes separately when their rates and taxable bases differ. Add the applicable amounts to estimate the gross bill, then subtract any credits or other adjustments shown on your bill.
Step 6: Check your tax relief eligibility
If the property is your qualifying homestead, review Vermont’s Property Tax Credit requirements. An eligible credit can reduce the amount you ultimately pay.
Vermont $8000 Tax Relief
Vermont tax relief in 2026 may help eligible homeowners reduce their property tax burden through the state’s Property Tax Credit program. The maximum credit is $8,000, but the actual amount depends on household income, property taxes, and eligibility requirements. To qualify, homeowners generally must have lived in Vermont throughout 2025, owned and occupied their principal residence on April 1, 2026, and had household income of $115,400 or less. Applicants must file Form HS-122 and Schedule HI-144 through the Vermont Department of Taxes. Visit the official Vermont Property Tax Credit page to check the requirements and application instructions
Homestead vs. Nonhomestead Property Tax in Vermont
Understanding the difference between homestead and nonhomestead property is essential because the classification affects the education tax rate.
Homestead property
A homestead is generally the principal dwelling and surrounding eligible land that a Vermont resident owns and occupies as their domicile. Owners who meet the requirements must file a Homestead Declaration annually.
The homestead education tax rate depends on school district spending and the required local adjustment. A homestead classification does not automatically guarantee a property tax credit.
Nonhomestead property
Nonhomestead property generally includes:
- Second homes and vacation properties.
- Rental properties that are not the owner’s qualifying homestead.
- Commercial and business property.
- Other properties that do not qualify as a declared homestead.
The statewide FY2027 nonhomestead education rate is $1.643 per $100 before local appraisal adjustments. Municipal property taxes may also apply.
What if a property has mixed use?
If part of your home is used for rental or business purposes, the property tax bill may split the assessed value between homestead and nonhomestead portions. The relevant rates are then applied to their respective portions. Review your bill or contact your local assessing office if the classification appears incorrect.
What Is Vermont’s Common Level of Appraisal?
The Common Level of Appraisal, commonly called the CLA, helps account for differences between towns’ assessed property values and recent real estate sale prices.
Because towns do not necessarily reappraise properties every year, assessed values may not match current market values. Vermont uses the CLA as part of its education tax rate adjustment process to help equalize taxation across towns.
Since the 2025–2026 property tax year, the Statewide Adjustment has also been incorporated into this process. The town’s CLA is divided by the statewide adjustment, and the resulting factor is used to adjust the education tax rate.
The CLA does not directly change your property’s assessed value. It affects the final education tax rate applied to that value.
This distinction matters when a town conducts a reappraisal. A substantial increase in assessed value does not necessarily produce an equivalent percentage increase in education taxes because the final rate can change as well. However, your actual bill may still increase or decrease depending on the valuation change, local spending, municipal taxes and other adjustments.
Vermont Property Tax Credit: Who Qualifies?
Vermont offers a Property Tax Credit to eligible homeowners who meet the state’s homestead, residency, and household-income requirements.
The credit can help reduce the burden of education and municipal property taxes, subject to the program’s rules and limitations. The Vermont Department of Taxes lists maximum credits of $5,600 for the state education property tax portion and $2,400 for the municipal property tax portion. These are program limits, not guaranteed payments to every applicant.
Eligibility generally requires that you:
- Own and occupy a qualifying Vermont homestead as of April 1.
- Have been domiciled in Vermont for the required taxable year.
- File the required Homestead Declaration.
- Meet the household-income requirements.
- Not be claimed as another taxpayer’s dependent, subject to the program’s rules.
There are specific exceptions and limitations, so check the current state instructions before claiming a credit.
How to apply for the Vermont Property Tax Credit
The principal forms are:
- Form HS-122: Homestead Declaration and Property Tax Credit Claim.
- Schedule HI-144: Household Income.
You can generally submit your claim through Vermont’s myVTax system or with your Vermont income tax return. The usual filing deadline is April 15, with additional rules for late homestead declarations and extensions. Confirm the applicable year’s deadline and eligibility requirements with the Department of Taxes.
For the 2025 income year, the state lists a maximum household income of $115,400 for the property tax credit program. This figure relates to the specified 2025 tax-year eligibility rules; do not assume it is automatically the limit for a later claim year. Check the current instructions for the year you are filing.
Official resource: Vermont Property Tax Credit.
Why Vermont Property Taxes Can Increase
Your property tax bill can rise even if your property’s assessed value has not changed. Several factors may affect your annual bill.
Higher school spending: Homestead education tax rates are influenced by school district spending per pupil and the applicable state yield.
Changes to municipal budgets: Towns may raise their municipal rates to fund services, infrastructure or other local expenses.
Property reassessment: A reappraisal can change the taxable value of your home. The impact on education taxes also depends on the applicable adjustments.
Property classification: A property that is not correctly declared as a homestead may be taxed at the nonhomestead education rate.
Changes to tax relief: A household’s eligibility or the amount of its property tax credit may change from one year to another.
To understand why your bill changed, compare the current and previous bills line by line. Separate the municipal tax from the education tax and check the taxable value, classification, final rates and any credit or payment applied.
How to Check Vermont Property Tax Rates by Town
Because local rates vary, homeowners should use official town-level information rather than relying on a single statewide estimate.
- Visit the Vermont Department of Taxes education tax rate page.
- Find your town in the FY2027 rate table.
- Check the homestead or nonhomestead rate that applies to your property.
- Review the CLA, Statewide Adjustment and budget status.
- Check your municipal rate on your tax bill or contact the town office.
- Confirm whether any property tax credit or other adjustment applies.
Some town rates may still be subject to updates when school budgets or reappraisals have not been finalized. The official rate table identifies relevant status information, so verify that the listed rate applies to your property and tax year.
Tips for Managing Your Vermont Property Tax Bill
- File your homestead declaration on time. If you qualify, timely filing helps ensure the correct education tax classification.
- Review your assessment. Check the property’s listed value and contact your local assessing office if you believe an error has occurred.
- Check property tax relief programs. Do not assume you are ineligible without reviewing the current income and residency requirements.
- Budget for both tax components. Municipal and education taxes may change for different reasons.
- Compare bills year over year. Review the taxable value, rates, classification and credits rather than looking only at the total.
- Use official information. Vermont’s Department of Taxes provides current rates, forms, instructions, and guidance for homeowners.
Frequently Asked Questions About Vermont Tax Relief
1. Who is eligible for the Vermont homestead exemption?
Vermont homeowners who own and occupy a property as their principal residence may qualify for the Homestead Declaration. You generally must be a Vermont resident and intend the property to be your permanent home as of April 1. To qualify for the separate Property Tax Credit, you must also meet the applicable residency, household income, and other requirements. For the 2026 credit, the household income limit is $115,400 for the 2025 tax year.
2. How much will I be taxed if I make $100,000 a year in Vermont?
For the 2026 tax year, a single employee earning $100,000 annually may pay approximately $24,960 in total federal income tax, Vermont income tax, and Social Security and Medicare taxes, leaving about $75,040 per year, or $6,253 per month. This estimate assumes the standard deduction and no dependents or additional tax credits. Your actual tax bill may differ based on filing status, deductions, benefits, and other income.
3. How much will I make after taxes if I make $70,000 a year in Vermont?
A single employee earning $70,000 per year in Vermont can expect to take home approximately $54,000–$55,000 annually, or around $4,500 per month, after federal income tax, Vermont income tax, and Social Security and Medicare taxes. This is an estimate for 2026, assuming the standard deduction and no additional credits or pre-tax deductions. Your actual take-home pay will depend on your tax filing status and personal circumstances. For a more precise estimate, use a Vermont paycheck calculator.
Conclusion
Vermont property taxes depend on more than the value of your home. The town’s municipal tax rate, the applicable education tax rate, your property’s homestead classification, appraisal adjustments and eligibility for property tax relief all affect the amount you owe.
For the 2026–2027 property tax year, start with Vermont’s official FY2027 education rate table, check your municipal rate, and review your bill for credits or adjustments. If you qualify for a homestead or property tax credit, filing correctly and on time can help you avoid paying more than required.
Because tax rates and eligibility rules change, verify the latest information with the Vermont Department of Taxes before making financial decisions.