Vermont property taxes are among the highest in the nation, with a statewide effective rate of roughly 1.51%. The state uses a complex, equalized education tax system designed to fund schools evenly across wealthy and low-income towns. To offset these heavy burdens, Vermont offers a powerful income-sensitive Property Tax Credit that significantly reduces the final tax bill for eligible residents (est., Tax Foundation 2026 / U.S. Census ACS 2023).
Vermont has no state-imposed caps on property tax rates, total tax levies, or limits on how much an assessed property’s listed value can increase annually. In recent years, driven by massive increases in local school spending and healthcare costs, Vermont homeowners have faced double-digit property tax hikes, making the state’s Property Tax Credit more vital than ever.
100% Assessment and the 6-Year Cycle
In Vermont, property is assessed locally by the town at 100% of fair market value. To ensure towns aren’t deliberately under-assessing properties to game the state education funding formula, the state uses a multiplier called the Common Level of Appraisal (CLA) to equalize values across the state.
Effective January 1, 2025, state law dictates that all municipalities must conduct a mandatory full reappraisal every 6 years. Additionally, reappraisals are triggered early if a town’s CLA falls outside the 85%115% range of true market value, or if its Coefficient of Dispersion (a measure of equity) exceeds 20%.
Vermont statewide effective rate. On a $400,000 home, expect approximately $6,040 per year at the statewide average. (est., Tax Foundation 2026).
| Home Value | Annual Tax (est.) | Monthly Payment | vs. U.S. Average |
|---|---|---|---|
| $250,000 | $3,775 | $314 | +$1,525 above avg. |
| $400,000 | $6,040 | $503 | +$2,440 above avg. |
| $600,000 | $9,060 | $755 | +$3,660 above avg. |
| $800,000 | $12,080 | $1,006 | +$4,880 above avg. |
| $1,000,000 | $15,100 | $1,258 | +$6,100 above avg. |
Estimates use 1.51% statewide effective rate. U.S. average uses 0.90%. Source: est., Tax Foundation / Census ACS.
The Homestead Declaration (Form HS-122)
If you own and occupy a home in Vermont as your primary residence on April 1, you must file a Homestead Declaration (Form HS-122) annually by April 15.
Filing this form ensures your property is taxed at the “Homestead Education Tax Rate.” If you fail to file, your property will automatically be taxed at the “Non-Homestead Rate,” which is generally much higher, and you may face financial penalties.
Income-Sensitive Property Tax Credit
Because Vermont has no caps on property tax increases, the primary mechanism to protect residents from being taxed out of their homes is the income-sensitive Property Tax Credit.
- Eligibility: For the 2025 tax year, the maximum household income to qualify is $115,400. (This was raised from $115,000 in 2024).
- Maximum Benefit: Eligible homeowners can receive a credit of up to $8,000 total ($5,600 maximum to offset the education property tax portion, and $2,400 maximum to offset the municipal property tax portion).
You apply for this credit when you file your state income tax return, and the state calculates your credit based directly on your income relative to your property tax burden.
2024-2025 Legislative Tax Hikes (Act 183)
In 2024, Vermont passed Act 183 (The Yield Bill) in response to massive increases in local school budgets. As a result, property owners faced average tax increases of roughly 13.8% to 15% across the state.
To mitigate the immediate shock, the legislature used approximately $118 million in surplus funds to artificially “buy down” the tax spike, provided a one-time 13% increase to property tax credits, and implemented new surcharges on short-term rentals (Airbnbs) to raise Education Fund revenue.
Estimated Rates Across All 10 Top Counties
Because property taxes are levied at the town level to fund local schools, rates vary significantly. Bennington County carries the highest aggregate effective rate in the state (approaching 3.00%), heavily burdened by local school spending. Meanwhile, Chittenden County (Burlington) and Orange County maintain rates closer to the state average, buffered by a larger commercial tax base.
| County | Effective Rate | Annual Tax on $400k Home | Notes |
|---|---|---|---|
| Chittenden County | ~1.70% | $6,800 | Most populous; large commercial tax base mitigates rates. |
| Rutland County | ~2.13% | $8,520 | High residential burden. |
| Washington County | ~1.90% | $7,600 | Includes Montpelier (State Capital). |
| Windsor County | ~2.07% | $8,280 | High local education levies. |
| Franklin County | ~1.80% | $7,200 | Northwest region; tracks near state median. |
| Windham County | ~2.11% | $8,440 | Southeastern Vermont. |
| Addison County | ~2.00% | $8,000 | Includes Middlebury. |
| Bennington County | ~2.83% | $11,320 | Highest aggregate effective rate in the state. |
| Caledonia County | ~2.19% | $8,760 | Northeast Kingdom region. |
| Orange County | ~1.58% | $6,320 | Lowest aggregate rate among the top 10 counties. |
Disclaimer and Methodology
This calculator provides estimates for planning purposes only, based on effective property tax rates (actual median taxes paid divided by median home values). In Vermont, property taxes are levied at the municipal level, and state education taxes are equalized using the Common Level of Appraisal (CLA). This calculator uses historical “effective rates” to bypass complex CLA formulas and provide a highly realistic estimate of actual homeowner burden.
What this calculator does not account for:
- Your personal Income-Sensitive Property Tax Credit. Because this credit is based directly on your Adjusted Gross Income, you must estimate and manually deduct it using the field above.
- Non-Homestead tax rates for vacation properties, Airbnbs, or secondary homes, which are generally taxed at a much higher, non-residential education rate.
How to get an accurate estimate:
- Find your home’s 100% Assessed Value on your local municipal assessor’s website.
- Multiply the Assessed Value by your town’s combined Homestead Education Rate and Municipal Rate, then divide by 1,000.
- If you qualify, calculate and subtract your income-based Property Tax Credit.
Data sources: Statewide effective rate and aggregate county effective rates derived from the Tax Foundation, Census ACS, and SmartAsset aggregations. Statutory rules, CLA requirements, and Act 183 legislation from the Vermont Department of Taxes.
Return to the National Property Tax Calculator to compare Vermont with other states.
